Seeking Alpha

Railway traffic strong in September

  • The Association of American Railroads reports total U.S. rail traffic rose 4.4% in September
  • The most important takeaway from the monthly report was that rail traffic excluding coal and grain rose 4.9% to mark the best monthly performance by the category since December 2012.
  • While economists use railroad traffic trends to makes assessments on the broader economy, investors in railroad stock will hope the trend can survive the government shutdown and debt ceiling debate.
  • Related stocks: ARII, UNP, GBX, CP, CNI, CNI, GWR, KSU, NSC.
Comments (3)
  • cdjagds
    , contributor
    Comments (15) | Send Message
     
    You said 'excluding coal and grain' how about oil rail transport which has I think grown exponentially!
    Does not that skewed seriously these 'beautiful' numbers?
    4 Oct 2013, 12:23 PM Reply Like
  • Nitin B. Sharma
    , contributor
    Comments (181) | Send Message
     
    good point. also UP announced Q3 will be lower, due to coal and floods.

     

    http://bit.ly/15MJQjt
    4 Oct 2013, 12:41 PM Reply Like
  • brianhutch
    , contributor
    Comments (312) | Send Message
     
    How much intelligence is there among speculators ?
    Rail road traffic is up 4.9% ,presumably that is year over year .
    If that is the case does a 4.9% rise in traffic now justify the gain in KSU for example of 49% from this time last year ?.
    That is even more questionable when investors who do their homework find that KSU stock is selling at a ridiculous 5.3 times sales and has balance sheet problems because of over optimistic expansion plans .
    Cash on hand at end of Q2 a gigantic $30M or just 27c per share .
    Also check out on yahoo finance the negative free cash flow .
    My advice get out before KSU follows UNP downwards and fast
    4 Oct 2013, 02:42 PM Reply Like
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