Investment Ideas

• September 25, 2001
• Jon Najarian

FedEx
(
FDX |
Quote |
Chart |
News |
PowerRating), the world’s # 1 air-express package shipper and United
Parcel Service [UPS|UPS], the # 1 delivery
service, have been hammered along with commercial carriers such as United

(
UAL |
Quote |
Chart |
News |
PowerRating) and American
(
AMR |
Quote |
Chart |
News |
PowerRating).
While both FDX and UPS will be forced to address security issues, most of which
will take their toll on earnings, there are issues that effect airlines that
have no bearing on package service companies:

1. Packages
   will not be as hesitant to get back onto an airplane as their human
   counterparts

   
   
   

2. More
   stringent security is unlikely to deter packages from flying

   
   
   

3. Packages
   are unlikely to cancel conventions or drive to their destinations to avoid
   flying.
   
   

Seriously
though, we are taking a long hard look at a variety of strategies involving
LEAPs and short-dated options to position ourselves in these two names. To
find out more, tune in to “Doctor J and the
Traders” (WebFN.com)
Thursday at 4:30 PM (CDT).