From: Martin Zeman Sent: 3/6/2018 11:44:52 AM To: 'Paul Barrett (I CC: Joshua Shoshan I I; Stewart Oldfield Subject: XPO Logistics and FEDEX Attachments: 2018.02.22 - XPO Logistics - potential for 30% FCF.pdf; 2018.02.22 - U.S. Transportation report.pdf ; Davide-A Sferrazza I I; Xavier Avila Paul, Please see attached 1-pager published two weeks ago (and also a more detailed report on the industry). Our analyst is really bullish on FEDEX and XPO and doesn't like UPS which really got beat up last few weeks. What I think makes sense is picking up premium on puts on these two stocks that you should be long if they dip lower from current levels. You get $4.50 for $220 June Fedex Puts (the stock now at $242 and still 10% down to January highs). When it comes to XPO, you can get $2.45 for May 90 Puts (we have a $133 target on that stock and I recently sat in a meeting with our analyst and he clearly is very bullish this company). My point is, you have nothing in logistics and you could be long a more defensive industry if you get exercised on stocks that have really good growth stories. On UPS — they really got beat lately, but they are way behind in capex investments compared to where Fedex is and their automation levels are 20 years behind Fedex now. Could be a punt, but not sure it makes sense trying to catch a falling knife on a story that is not attractive. Martin Martin Zeman Director I Key Client Partners Deutsche Bark Wealth Management DB Secuities Inc 345 Park Avenue. 10154-0004 New York. NY. USA Tel. Mob Em KCP products and services are intended and available only for persons who are sophisticated institutional investors within the meaning of the F1NRA Rule 4512(C)(3). and who are capable of evaluating the strategies. characteristics and investment risks of. and exercising independent judgment in evaluating, the ideas and products discussed herein. Trades and transactions are subject to relevant internal approvals of OBS! or