Owns companies providing rail, intermodal and rail-to-truck transload services that combine to form one of the nation's leading transportation companies.
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Under performer will finally catch up.
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CSX is depressed vs. CNI & UNP (two other companies I gave the green thumb to).
UNP
Market Cap $68.82B
p/e 17.3
Yield 1.87%
CSX
Market Cap $24.32B
p/e 13.16
Yield 2.52%
CNI
Market Cap $40.16B
p/e 17.1
Yield 1.77%
I think the problem is that CSX is being sold because of a SHORT-TERM issue related to to the price between coal & natural gas. This problem is likely to resolve in the long-run because 1) NG prices may rise and demand continues to rise. 2) Not all utilities can switch to NG -- coal demand will flatten. 3) Crude oil by rail could fill in some of the softness from coal.
In the long run, CSX is a winner -- the p/e will rise towards to peers and get a little extra dividend yield while I wait.
Choo Choo!
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Investment of new rail that can trnsport @ 100 mph.
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With rising fuel prices and more restrictive driving time limits hitting the trucking industry this sunmer, rail will become even more appealing.
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Took some hits in the media and the company is now buying back shares
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Rail and truck to rail
whooo whooo all aboard
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rising dividents and overall good numbers
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Do you laugh at the guy who buys rails in monopoly?
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Rising dividends, low P/E, well run company!
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Excerpt from unedited CAPSCall article anticipated for publication on 15-JAN-2013:
The next selection for the Inflation-Protected Income Growth Portfolio is a two-for-one deal, half positions in railroads CSX (NYSE: CSX) and Union Pacific (NYSE: UNP). CSX has a strong presence that covers much of the eastern part of the United States, while Union Pacific covers the western part very well. Between the two of them, haulage is covered from the Atlantic to the Pacific with many, many points in between.
Both railroads have decent valuations, balance sheets, and dividend histories, yet only moderate overlap in their route networks. Buying both effectively gets a system that operates coast to coast, while only buying half positions in each respects the diversification principle that protects the overall portfolio from an industry-wide failure.
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It is nearing the bottom and gaining support. I see this stock at $22.50 by end of 2013.
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Oil Transportation
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FSTG experiment
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Duopoly in an industry w/ almost insurmountable barriers to entry seling at 1.1x Graham number. CSX is almost certain to outperform in the long term.
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Undervalued
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As the economy continues its lethargic recovery and diesel fuel prices continue to climb the railroad industry is going to be the beneficiary. CSX is poised to stay on track to higher revenues and margins.
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With its strong railways, and great positioning, this company is awaking from its slumber.
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As industry picks up, as the economy continues to rise this stock will go up along with it. Also as Asia becomes more industrialized (especially China and India), there will be an increase need for CSX's services.
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Running cleaner and more effecient than trucking...don't expect a take off until US jobs improve and economy picks back up. Not a trade
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Our vast coal supplies and the jobs they provide will
not be neglected. Overseas market should grow and need transportation to ports. Railroad should
only prosper in years to come.
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