FedEx shares hit its biggest daily gain in 9 months

Absrtact: In the capital market, the words and actions of the financial bosses can often have a great impact on the price of some assets. Recently, the United States short of the master, well-known fund manager William Akman (Williamackman) to the customer's letter, so that FedEx

In capital markets, the words and actions of financial bosses can often have a huge impact on the price of some assets. Recently, the U.S. "Short master", the famous fund manager William Akman (Williamackman) Letter to customers, the United States FedEx Express Company (Fedexcorp) quickly become the hot spot for U.S. investors.

The biggest daily gain in 9 months

The shares of FedEx, the world's second-largest express company, rose sharply on Tuesday (July 9), with FedEx shares closing at $103.15 a day, up 4.4% per cent, the biggest daily gain since last October 10. It was rumoured that Mr Ackermann would make a huge equity investment in the company.

According to CNBC, Ackman sent a letter to clients in Monday hoping they would entrust a total of 1 billion dollars to their two new funds, two of which would invest in a large US company, but did not disclose the company's name.

According to Mr Ackermann, the company is involved in a higher entry barrier with a simple and predictable business. In addition, the company's shares should be traded at lower earnings multiples than rivals.

After a market interpretation, FedEx was considered by many investors to be the most consistent with Mr Ackermann's description of the target, Bloomberg data showed that, according to analysts on the company's profit forecast this year, FedEx's earnings ratio of 15 times times, compared to its competitor ups 18 times times lower than 20%.

Had Mr Ackermann really planned to buy FedEx shares for 1 billion dollars, Mr Ackermann would have gained a 3.2% per cent stake in the company's market capitalisation of 31.32 billion dollars this week.

A record of untold satisfaction

But even if the market rumors are true, FedEx's outlook is still full of variables, Reuters quoted Morningstar analyst Keithschoonmaker as saying, "We agree that FedEx's current valuation is attractive, But we don't think radical investors currently have a chance to catalyze a major business improvement in FedEx. ”

In addition, from Mr Ackermann's investment history, his previous investment in Penny's company and the short selling of Herbalife were hard to claim.

Public information shows that a fund named Pershingsquareiv in 2007 had raised $2 billion to invest in shares of U.S. retail company Targetcorp.

Since the Fund adopts the option trading strategy with higher risk, the fund's profit and loss was much greater than the volatility of its share price, and it was reported in February 2009 that the fund had lost as much as 89.5% per cent in the month of January, with a monthly loss of 40.1% per cent in the same year and a 9.6 per cent decline in the same period. %。