Paul Harris, CFA
Burlington Northern Santa Fe
BNI-N
BUY
Sep 19, 2005
The whole railroad industry has done quite well and will continue to do well as new rr's can't be built overnight. A good story longer term. A great area to be in.
Rails are cycle stocks. If the market has fully priced in a recession, what should we be buying when coming out of the recession. Rails are a great place to be along with trucking.
They made a comment that getting into the fracking process is a higher cost proposition and Q1 earnings are lower than q4 so they are down. It is a first class company but right now, wait to see what the market does and how it resolves it self over the next two to three months.
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