• Tom Armistead
    Took up a starter position in $NSC, I think they can compensate for lost coal business with intermodal gains.
    12/27/12
    Reply (9)
    • russellb73: always admired your contributions to S.A....I have sold OTM puts on NSC after drops last few months.
      12/27/12
    • Tom Armistead: Thanks for your comment, I'm long the Jan 2014 50 calls, sold some Jun 2013 65 calls against it...
      12/27/12
    • Greg_Maryland: Tom, I appreciate your comments as well. You might also look at KSU. They are doing great with inter modal from the mexican factories.
      12/27/12
    • Tom Armistead: Greg, I checked M*, they like KSU. I got NSC from a Dividend Growth screen, KSU isn't in that group, but is a good growth stock
      12/28/12
    • Greg_Maryland: Credit Suisse has KSU on their focus list (top 25). Very few ways to cross the border and their investment in the track is behind them .
      12/28/12
    • Greg_Maryland: I have two diagonal positions -- short 6 March @85, long 4 June @70 and 2 June @ 65. I've been listening to you on placing these trades :-)
      12/28/12
    • The Fox: It is possible they can overcome the coal shipments, but why take the chance? I had to take a pass on this one for that very reason.
      12/28/12
    • Tom Armistead: Fox, it's trading a a serious discount to its historical averages on any of the common metrics. Discount larger than loss of revenue.
      12/29/12
    • Tom Armistead: Greg, open interest for KSU options is low, I've made money on similar situations but it can be hard to exit or adjust at a fair price.
      12/29/12