$UPS & $FDX rise ?
With a strike on both the US East Coast and the Gulf I am expecting a minimum 5% increase of the stock prices as investors would start to anticipate higher sales growth over the period of the impending strike.
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David Lee cm : Why does a strike lead to higher sales growth? Do you mean consumers will stock up in anticipation of the strike? But if retailers can't get the goods in due to strike, wouldn't that affect sales.
Yan Zhang8 David Lee cm : 空运
David Lee cm Yan Zhang8 : Air transportation is expensive, and the number of orders that can be grabbed is also limited.
Singaporeno1trader OP David Lee cm : hi David, the stock is anticipated to rise as the strike will cause disruption to major supply chains , ie food ,pharmaceuticals and other key products such as electronics. in order to avoid these disruptions many producers may shift to using airfreight instead. $United Parcel Service (UPS.US)$ S & $FedEx (FDX.US)$ will be able to charge higher as demand surges. hence more sales revenue.
however after such I rise I do except that any gains will be priced in before the next earnings call