Railroad Stocks

[billyjoe]

I'm thinking about buying one of the following railroad stocks. These are my top 6 not in any order : CSX GWR UNP KSU BNI WAB . If you have any hot information or just an opinion on any of these it would be appreciated. Thanks

-----------billy

[riverbabe]

I'm thinking about buying one of the following railroad stocks. These are my top 6 not in any order : CSX GWR UNP KSU BNI WAB . If you have any hot information or just an opinion on any of these it would be appreciated. Thanks

-----------billy

I just bot BNI through my real broker. I had suggested railroad stocks and he was really excited about this one. I haven't researched it fully. River

[billyjoe]

River,
Thanks. BNI is the one Warren Buffett bought 61 million shares of*. That is 17.5% of the company.

-------------billy

*I know it's not proper to end with a preposition. Call me wild and crazy.

[Karel]

River,
Thanks. BNI is the one Warren Buffett bought 61 million shares of*. That is 17.5% of the company.

-------------billy

*I know it's not proper to end with a preposition. Call me wild and crazy.

Perhaps that rule isn't the last word.

Regards,

Karel

[New-born baby]

CSX is a hot stock. I bought at $47, and PnF says $62 is the target. It may go $20 higher than that, I don't know. Ask Spike where the wave quits. He'd know.

[peanuts]

If you think that railroads will do well, in general, but you don't know which one would be the best, then why not stick with suppliers? WAB is a well established company that is CHEAP right now... It is also very close to my previous employer, and I know several people that work (past and present). They have an added bonus of being in the public transportationo side. Think subway cars. Their RR service operations are in the heart of coal country. Westinghouse Air Brake Technology aka WABTEC, should benefit from a move in the RR industry.

I like railroads, too, billyjoe. Just ask ole' Newborn about my CSX.... I can't remember which one of us had it first.

[riverbabe]

If you think that railroads will do well, in general, but you don't know which one would be the best, then why not stick with suppliers? WAB is a well established company that is CHEAP right now... It is also very close to my previous employer, and I know several people that work (past and present). They have an added bonus of being in the public transportationo side. Think subway cars. Their RR service operations are in the heart of coal country. Westinghouse Air Brake Technology aka WABTEC, should benefit from a move in the RR industry.

I like railroads, too, billyjoe. Just ask ole' Newborn about my CSX.... I can't remember which one of us had it first.

Apart from Warren Buffet's investment, RR should do well in this era of high gas prices when the trucking companies are/will be in trouble. The secondary companies like WABTEC should be good for the really long term, but shorter term, there may be enough supply to satisfy demand. What do you and NBB and billyjoe think? River

[riverbabe]

From briefing.com short time ago:
Railroad Index -DJUSRR- sets new session high of 542.66 in recent action, hovering modestly below its March/52-wk high at 543.12 (542.47 +4.82) -Update- -Technical-

BNI +0.3%, CSX +0.7%, GWR -0.2%, KSU -0.4%, NSC +1% (testing March/9 month high), UNP +1% (set new 4 month high), ARII +2.6% (testing 50 sma/ema), CNI -0.1% (hovering slightly under late March recovery high and 50 sma)

[billyjoe]

I eliminated UNP and did some research on the remaining 5. Since WAB isn't a railroad, the numbers really are insignificant for comparison. Most represent % unless noted otherwise.

--------------------CSX------GWR-------KSU-----BNI-------WAB

current price-------58.51-----34.96-----40.64----95.78-----38.60
12mo. sales grth.----4.90-----14.80------5.00-----5.50-----24.10
12mo. income gth----6.40-----55.20-----49.90-----3.20-----27.10
net profit-----------12.22-----13.42------8.85----11.57------8.04
return on invest.----13.91-----14.56------8.13----16.88-----20.12
debt/equity ratio------.84-------.63-------1.02------.73-------.24
forecast 12mo.grth.-17.00------7.00-----23.00----10.00-----18.00
6 month RS----------96--------98--------93-------90--------81
dividend--------------1%----- -0----------0-------1.4%------.1%
miles of track-------21,000---10,500------NA-----32,000-----NA
MKT.Cap-------------23.6b.----1.23b----3.12b-----33.22b---1.89b

Industry average 19 companies sales gth-7.60--income gth.--7.00
net profit margin---15.00----Debt/Equity ratio---.65


---------------billy