FedEx (FDX) Stock May Have Grabbed The Attention Of Ackman

FedEx FDX Stock News

FedEx Corporation (NYSE: FDX) is trading in the green early on this morning. However, if you’re looking for press releases or SEC filings, you’re not going to find anything. The company has issued no news.

Nonetheless, the gains seem to be the result of a rumor that, if true, could lead to a tremendous run in value in the relatively near term. Here’s what’s going on:

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Bill Ackman May Have Interest In FDX Stock

As mentioned above, while FedEx hasn’t issued any news or filings, the stock is making its way into the green this morning following rumors. The rumors suggest that activist investor, Bill Ackman has taken a substantial stake in the company.

The rumors first broke minutes ago on DealReporter. Considering the source, there may be some validity to the story.

For those of you who don’t know, Bill Ackman is one of the most active of the activist investor community. He is known for taking substantial positions in companies that he believes could be doing better for their investors.

Once Ackman takes a stake in the comapny, he often pushes for seats on the Board of Directors and a series of changes to opperations that lead to growth in shareholder value.

Be Cautious

While if true, a stake by Bill Ackman in FDX could lead to strong value growth for investors, there is no confirmation that Ackman has any interest in the stock at all! The truth of the matter is that rumors are the most common way that the market is manipulated, and most of them prove to be completely false in the long run.

While there could be tremendous opportunity here if the rumor is true, there is also tremendous risk should the rumor prove to be false. So, if you don’t have a healthy appetite for risk, making moves based on market chatter is not a good idea.

What If The Rumor Is True

If the rumor is true, investors are likely to find out very soon. Any time an investor takes a substantial stake in a company, the move needs to be filed with the SEC. While it may take a little while for a filing to take place, it will happen if the rumor is valid.

Should this be the case, Ackman is likely to step in, pushing for seats on the Board of Directors. From there, he will likely send the company a letter with his views on what the company could be doing to increase shareholder value. If FDX pays attention to the letter and follows the suggestions, the stock could see tremendous, long-run growth!

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