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  • CSX, A Rail To Ride To Retirement [View article]
    Of course I open my big mouth, and this happens. http://reut.rs/U7gRu1
    Nov 30, 2012. 08:07 PM | Likes Like |Link to Comment
  • CSX, A Rail To Ride To Retirement [View article]
    Okie,
    Perhaps you could enlighten me as to what specific regulations you are referring to? I know the STB oversees and reviews mergers and acquisitions within the rail industry. They also resolve rail service and rate disputes, but I am not aware of them restricting rates. The rates are generally determined by a contract, and the rail companies generally build escalators into those contracts that drive rates up well above the rate of inflation, usually between 5-10% annually. If you can point me to whatever regulation and information you're refering to I would love to take a look at it.
    Nov 30, 2012. 08:02 PM | Likes Like |Link to Comment
  • CSX, A Rail To Ride To Retirement [View article]
    Think of those steel shipping containers you may see come in via ships in a port. That steel container is then lifted from the ship by crane, and in essence it can be placed directly onto an empty railcar. When it gets to a rail station near its final destination, the shipping container can be lifted by another crane and placed on an empty flatbed for local delivery by truck.

    It enables those shipping goods to send them over long distance by rail (more efficient and cost effective than trucking), and then deliver locally via truck, without having to unload the shipping container at the port, load a truck or rail car, unload again, etc.
    Nov 29, 2012. 08:04 AM | 1 Like Like |Link to Comment
  • CSX, A Rail To Ride To Retirement [View article]
    I'd encourage you to take a look at some of the safety data that is available.

    http://1.usa.gov/QrliUA

    http://bit.ly/TpQy37

    Accidents per 1,000,000 train miles CSX has met the target that CN set for their performance, and CSX has shown continued improvement in this area over the past five years, whereas CN has been relatively stable around 2.25/million miles.

    I think CN can be another good investment, as I think most rails represent good buys when they can be purchased at the right value.
    Nov 28, 2012. 08:52 PM | 1 Like Like |Link to Comment
  • CSX, A Rail To Ride To Retirement [View article]
    Much like Roy said above, they operate in the same space and have many of the same opportunities ahead of them. NSC has seen its share price pummeled since about mid-September, and it offers a good opportunity for the buy and hold investor. NSC actually has a lower P/E and a higher divided right now. I do think CSX holds a slight edge on them in terms of growth due to the strong footing CSX has established in intermodal transport.

    I think rails generally represent good buys when you can obtain a favorable valuation. It is an industry with enormous barriers to entry, limited competition, and the efficiency and safety of rail transport is difficult for other transport methods to match.
    Nov 28, 2012. 07:20 AM | 3 Likes Like |Link to Comment
  • CSX, A Rail To Ride To Retirement [View article]
    Roy,
    I would love to hear about what comes out of your interview. I think CSX management does an excellent job, and hearing their perspective could be enlightening.
    Nov 28, 2012. 07:15 AM | Likes Like |Link to Comment
  • CSX, A Rail To Ride To Retirement [View article]
    Thanks Jeb,

    It's been amazing to me to watch such a quality company and stock trade sideways for such a long period. In addition, this recent pullback in the shareprice has provided a great opportunity to add to or initiate positions, and I added quite a bit as shares fell.
    Nov 27, 2012. 07:29 PM | 1 Like Like |Link to Comment
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