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Rails Doing Well This Morning (CP, CNI, NSC)

scott
edited October 2013 in Off-Topic
Canadian Pacific - Significant beat, record earnings. +7%
Canadian National - Significant beat, record earnings + 4% (also declares 2-for-1 stock split and buyback up to 15M shares.)
Norfolk Southern - Significant beat +4.4%.

CSX also beat the other day.

Energy (and related - frack sand, etc) hauling continues to do very well and I think that theme (energy transport/infrastructure) is still compelling long-term. I think we need more energy infrastructure in this country (and especially in Canada) and pipelines are not going to get built or are going to take longer to get built. Demand for frack sand and other such materials also seems to continue to be high.

Comments

  • TSP_TransferTSP_Transfer
    edited October 2013
    Not so much with Caterpillar .Lay-offs,write-downs in China
    "Long term, the mining customers I've talked to lately are very bullish," Oberhelman said. "But I don't know if long term is next year, five years or 10 years. But it will come back. We've seen it every single time."
    http://news.yahoo.com/caterpillar-posts-lower-results-cuts-outlook-mining-weakness-115535078--sector.html
  • scott
    edited October 2013
    Reply to @TSP_Transfer: It's an interesting world, where technology and data are commodities in demand whereas commodities (mining companies starting to come back, but still down quite a bit - and that was apparently an issue w/CAT) in the traditional sense that are a traditional indicator of economic demand/activity are just muddling along.

    Energy is doing well from the standpoint of innovation/unconventional finds, but driving is down and China is now a larger oil importer than the US. Elsewhere, Boeing (increased travel in EM, plane upgrade cycle yadda yadda) doing well, as is GE.

    Also, Deere not selling off much at all - a tad surprising given CAT.

  • slick
    edited October 2013
    I have been waiting for CAT to come back, on Tuesday I finally was at breakeven for the first time in 10 months, then kapow. Jury is out as to whether I will continue to hold or not, if it gets back to even, it might be a good time to move on. I have UNP, it is down slightly, but it has been a great holding for me. The other rails are just taking center stage right now.
  • scott
    edited October 2013
    CP +10.25%

  • slick
    Reply to @scott:

    That is my favorite Mel Brooks movie, it's just as funny the 15th time as it is the first, but it is not everyone's cup of tea.
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