Seeking Alpha

Finding value on the 52-week high list

  • A dose of fundamentals analysis reveals a trio of stocks that look cheap despite trading near 52-week highs, according to Barron's Jack Hough.
  • The group all features steady cash flow in industries where margins are improving, while trading below 15X 2013 earnings estimates.
  • In the bargain bin: CSX (CSX -0.3%), Owens Illinois (OI -0.5%), Hillenbrand (HI +0.9%).
Comments (4)
  • The immediate fortunes of CSX ride on coal! It is a extra weight around the ankles of a runner.
    17 Sep 2013, 02:05 PM Reply Like
  • If you read the recent presentation, 80% of CSX transport is now intermodal, and that is going to be it's future. More trucking firms are using this option to cut costs, reducing their fuel and labor costs, plus the possible loses from insurance claims. The increase in double stack available track means less cars hauled with more load. New cars will most likely be built designed to take advantage of this height capability.
    18 Sep 2013, 09:56 AM Reply Like
  • Takes a lot of coal to make all of this steel to build all of these cars built in the USA, and then you need rail cars to move them out of the factory. Bi-model is exploding. High volume in coal but small margins. Higher margin in almost every other category. Don't get fogged out by coal. Also beginning to haul more gas. Commodities travel cheaper per mile by rail than any other form of transportation. Very little competition if any...
    17 Sep 2013, 05:44 PM Reply Like
  • True but it needs to be a minimum of 550 miles to become cost effective. If we can close the EPA, coal moves on and the rails benefit.
    17 Sep 2013, 05:59 PM Reply Like
DJIA (DIA) S&P 500 (SPY)