Value Investing with Sven Carlin, Ph.D. on $FDXF (Nov 3, 2026)
FDXF's post-spin-off earnings brought good numbers and faster-than-expected developments, lifting the stock 14%, but the speaker frames its $4 billion debt raise as financial engineering and flags split costs and problems; with recession risk still open, this is good results against unresolved risks, not a clear buy.
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FedEx Freight Holdings, of course a spin-off of FedEx, has done well recently in the earnings announced a few days ago , but look at the financial engineering. They raised 4 billion in debt because they are probably a better company than FedEx.
The expected capital requirements are better. Therefore, they can afford more debt. The parent company receives 4 billion and then reduces its debt. Then there were a lot of costs, and a problem with the split, but for me this is again, well, good numbers, faster-than- expected developments, and then the stock booms after earnings by 14%, but again, risks, recession , what will happen then?
Then all the figures and analysts make adjustments. There may be some tax advantages, but not for me.