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Norfolk Southern's (NSC -7.5%) dismal Q3 results prompt three downgrades, including Citigroup's...

Norfolk Southern's (NSC -7.5%) dismal Q3 results prompt three downgrades, including Citigroup's reduction of its stock rating to Neutral from Buy. "Earnings headwinds are likely to persist into 1H13 due to sharp Y/Y declines in export coal volumes and the company's relative inability to manage short term costs in a weak volume environment," Citi writes. Also, CSX -3.4%.
Comments (7)
  • Classic over reaction, in my book.
    24 Oct 2012, 06:27 PM Reply Like
  • railroads haul raw materials that produce finished good and containers full of market ready products from overseas. Rail traffic declines may be an indication of future economic fortunes for the USA.
    24 Oct 2012, 10:16 PM Reply Like
  • I agree with grox01 that the price drop is excessive. It is strange to hear people wail about how bad economic conditions are in the United States and in the world in general and then see them dump their shares in a good company because it did not meet analysts' expectations due to declining business conditions. I also think that we should be careful what we wish for. The burning of coal imposes on society massive personal tragedies and medical costs in illnesses and deaths and in interventions in businesses' lives (i.e. regulation) to preserve quality of air, water, and soil. Trains transport goods at lower cost, with greater fuel efficiency, and with less air pollution than do trucks, so if we want corporations to reduce their costs and produce greater profits for their shareholders, we will be using trains increasingly regardless of how much coal they carry.
    25 Oct 2012, 12:38 PM Reply Like
  • bot some csx today at 19.67
    14 Nov 2012, 03:02 PM Reply Like
  • bot some csx today at 18.91
    16 Nov 2012, 02:37 PM Reply Like
  • All good buys in my book.
    16 Nov 2012, 04:33 PM Reply Like
  • they keep getting better!
    16 Nov 2012, 05:26 PM Reply Like
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