By Ryan Derousseau, contributor
FORTUNE -- The bear: Donald Broughton, Avondale Partners
"UPS (UPS) is a great company, but I see some significant short-term headwinds. Europe is decelerating faster than Asia or America, and UPS has 14% of sales -- to FedEx's 7% -- from Europe, the Middle East, and Africa. With the $6 billion purchase of European shipper TNT Express, UPS doubled down on the region. That may be the best strategic move long term, but not in the short term. UPS's U.S. volumes were up 0.1% year over year from April to May. But that doesn't make up for the 3.5% drop in transatlantic shipments. To say the struggling airfreight environment will magically go up is laughable. A potential Apple product launch in the fourth quarter is certainly positive for the freight market. But FedEx (FDX) moves the vast preponderance of Apple products, not UPS."
The bull: Kevin Sterling, BB&T Capital Markets
"Airfreight volume has slowed. But UPS has the unique advantage of owning its own planes, and recently garaged 10% of its fleet. UPS can then capture any surges in freight quickly by redeploying the planes. It might need to soon, if Apple buys up capacity to ship a new product. This could also increase prices for non-Apple shipments, since Apple (AAPL) commands such a large portion of the air. We also expect a record number of holiday shipments this year. Finally, TNT helps put UPS in a prime position to compete against DHL in the region. At $73, the stock is trading at about 14 times 2013 earnings. Historically, that's an attractive entry point for UPS, and with a 3% dividend yield, we're in with a target price of $90."
This story is from the October 8, 2012 issue of Fortune.
While lawmakers and the Obama administration wrangle over side deals to the trade agreements with South Korea, Colombia, and Panama, U.S. businesses – and the economy – suffer.
By Scott Davis, CEO of UPS
It's time to put politics aside and focus on the positive economic impact of free trade agreements. The benefits provided by free trade should not be held hostage to maneuvering over the Trade Adjustment Assistance Program or confirming nominees MOREJun 22, 2011 9:15 AM ET
UPS may love logistics, but it no longer has any use for its Logistics Technology business. The delivery giant today agreed to sell the Baltimore-based unit to private equity firm Thoma Bravo, for an undisclosed price.
So I had five questions for Thoma Bravo principal Holden Spaht, to better understand what's in play:
1. What exactly did you agree to buy from UPS?
They have a software business they bought a while ago MOREDan Primack - Nov 22, 2010 4:44 PM ET
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