Jim Cramer's Wall Street Confidential Picks, April 9

Includes: BNI, NSC, UNP
by: Miriam Metzinger

Recap of Jim Cramer’s comments on Wall Street Confidential, Monday April 9. Click on a stock ticker for more analysis:

Burlington Northern (BNI), Norfolk Southern (NYSE:NSC) and Union Pacific (NYSE:UNP)

On news of Warren Buffett's buying an 11% stake in BNI, which Cramer considers "the worst rail in terms of operating performance," Cramer predicted the investment wizard also purchased NSC and UNP. NSC did not decline on its preannouncement of a terrible quarter and Cramer notes UNP is the second largest landowner in the U.S with great value. Although Buffett has been buying rails as they rise, he is not going against his own strategy, since the rails are valuable; "What people don't realize is that these stocks trade very thinly," Cramer said. "This is a group that has continuously shrunk the float." He sees Buffett's purchase of BNI as an indication that coal's story is not over, since the company is the only efficient coal transporter. With utilities hitting highs, Cramer sees a new trend in the relationship between transports and utilities; "Every time the utilities would go up, I would short the transports, and every time the transports hit a new high, I'd short the utilities. This is obviously no longer the case."

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