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Before their IPO last summer, some discussion was given to whether UPS would become a rule maker. I have not seen any further discussion since then. Any opinions?
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Kriswood,

UPS has been around for a while ... but UPS the public company has not been around long enough for us to really see if it's a Rulemaker or not. They have not filed a 10Q or 10K yet as of yesterday.

However .... there has been some discussion recently about specific industries where Rule Makers can most likely be found. I'm skeptical of UPS and this package delivery business of being a Rule Maker since they are heavily reliant on oil - at the mercy of OPEC. How can a company really be a Rule Maker if someone else has control over a huge part of your costs?

This doesn't mean UPS might still be a good investment. They are the #1 package delivery company out there (according to Hoovers). People know the UPS brand.

Personally, I will probably look into this company closer once I see some numbers released. However, not as a Rulemaker candidate.

MisterBounce



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Another thing to think about is whether a company whose main competitor is a governmental entity (in this case, the US Postal Service) can ever break through to RM status. You may be able to generate some numbers that look good on the RM spreadsheet, but when you have a competitor that is going to be subsidized through thick and thin, it is tough to say that the private company holds a "monopoly" on the business.

Huggie Bear
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