Mar. 25, 2014, 8:13 AM
Mar. 12, 2014, 10:17 AM| 4 Comments
Feb. 25, 2014, 4:42 PM
- Companies moving crude oil by rail must test the volatility of fuel out of North Dakota's Bakken oilfields to ensure the proper classification of crude oil before it is transported, the Department of Transportation announces.
- The move is meant to step up oversight after several recent fiery derailments of oil moved by rail out of the Bakken; some data contends that Bakken crude is more combustible than oil from other areas.
- Bakken oil names include: CLR ,EOG, WLL, HES, KOG, OAS, NOG, EOX, MRO.
- Rails: CSX, NSC, KSU, GWR, CP, UNP.
Feb. 22, 2014, 8:22 AM
- Beneath this winter’s plentiful snow, railroads are emerging as a rare investment opportunity, J.P. Morgan analysts say.
- The surge in demand for coal from U.S. power plants is pushing up coal prices, and coal is by far the biggest cargo carried on U.S. rails, accounting for 41% of all rail tonnage and 21% of rail gross revenue; J.P Morgan argues that at some point, coal should provide a positive catalyst for railroad company stocks since it accounts for so much of their revenue.
- The firm likes eastern railroad plays CSX and Norfolk Southern (NSC) since their networks serve the highest concentration of coal-burning utilities in the part of the country hit hardest by the cold weather; Omaha-based Union Pacific (UNP) also is hauling a lot more coal as utilities rebuild their supplies.
Feb. 12, 2014, 4:35 PM
Jan. 23, 2014, 3:33 PM
- Crude oil shipped by rail requires stronger tank cars and safer routes, transportation investigators in the U.S. and Canada say following a series of accidents in North America.
- The U.S. National Transportation Safety Board and Canada's Transportation Safety Board issued recommendations today as part of a probe into last July's derailment of rail cars filled with oil in Quebec.
- "The large-scale shipment of crude oil by rail simply didn't exist 10 years ago, and our safety regulations need to catch up with this new reality," NTSB chief Deborah Hersman says.
- CNI, CP, BRK.A, BRK.B, CSX, UNP, NSC, KSU, GWR.
Jan. 23, 2014, 12:45 PM
- Canada's Transportation Safety Board would like to see regulators in the U.S. and Canada adopt stricter standards to ensure safety on both new and older railroad cars. A particular from the board is on tankers carrying oil and other dangerous products.
- The early round of earnings report from railroad companies have been strong (Norfolk Southern, Union Pacific).
- Railroad stocks: UNP, NSC, CSX, CNI, ARII, GBX, CP, KSU, CNI.
Jan. 16, 2014, 9:10 AM
Jan. 15, 2014, 5:28 PM
- CSX -3.5% AH after Q4 profit fell 3.8% as expenses climbed, masking a jump in volume boosted by strong shipments of chemicals, autos and agricultural products.
- CSX Chairman/CEO Michael Ward says the results were supported by "the strength of an expanding economy," boosting overall volume by ~6% despite a 5% decline in coal volume.
- CSX has higher exposure to coal than its peers, reflecting the railroad's geography, which includes the Appalachian coal basin; ~25% of CSX's revenue comes from coal.
- Intermodal and chemical shipments were important factors contributing to CSX's growth in revenue and volumes for most of 2013; during Q4, intermodal revenue rose 10% while chemicals climbed 17%.
Jan. 15, 2014, 4:05 PM
Jan. 15, 2014, 12:10 AM
Jan. 14, 2014, 5:35 PM
Jan. 10, 2014, 9:10 AM| 7 Comments
Jan. 8, 2014, 10:34 AM
- "The Safety Bubble Deflates," goes the title of a new report from Bernstein's Seth Masters, adding his name to those voices suggesting "safe" assets have become otherwise.
- Even though utilities, telecom, and consumer staples have underperformed of late, says Masters, their relative valuations are still well above the average over the last 50 years. "In periods of stress, investors tend to prize stability and safety too much. But in time, investors discover that every investment carries with it some degree of risk: if not risk of loss, then risk of inadequate growth."
- Related ETFs: XLU, IDU, VPU, NLR, GRID, JXI, NUCL, DBU, IPU, RYU, PUI, UPW, FXU, SDP, PSCU, AXUT, FUTY, UTLT, XLP, VDC, FXG, RHS, FSTA, PSL, PSCC, IYZ, VOX, IXP, IST, XTL, LTL, FCOM, TLL, AXTE
- Barron's Jack Hough says the "low beta" approach is a flawed one: First, volatility can change quickly as companies' or industries' fortunes shift; Second, beta tells one nothing about whether a stock's valuation is high or low. In a similar warning over low volatility stocks, BAML suggests looking for companies with smooth earnings rather than smooth stock prices. Screening for such, Hough finds CSX Corp (CSX -0.6%), DuPont (DD +0.6%), Cisco (CSCO -0.6%), and Halliburton (HAL -0.8%).
- Low volatility ETFs: SPLV, USMV, ACWV
Dec. 16, 2013, 2:58 PM
- Deutsche Bank is out with some commentary and price target adjustments for a number of transport names. "We expect slow growth to continue well into 2014," analyst Justin Yagerman notes, but says "this is not a bad environment for earnings growth as cost inflation is generally modest and volumes are expanding, albeit at a slower-than-desired pace."
- Rundown: XPO reiterated at Buy, PT hiked to $32; ODFL upgraded to Buy from Hold, PT lifted to $59 from $49; UPS reiterated at Buy, PT raised to $123 from $100; UNP reiterated at Buy, PT hiked to $198 from $175; RRTS reiterated at Buy, PT lifted to $35 from $32; SWFT reiterated at Buy, PT raised to $29 from $22; JBHT reiterated at Buy, PT upped to $89 from $83; NSC reiterated at Hold, PT to $91 from $83; LSTR reiterated at Hold, PT hiked to $58 from $56; KNX reiterated at Hold, PT lifted to $19 from $15; ABFS reiterated at Hold, PT raised to $35 from $29; CSX reiterated at Hold, PT hiked to $28 from $25.
Oct. 17, 2013, 11:33 AM| 4 Comments
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