Opinions
Gordon Reid
CSX Corp
CSX-Q
DON'T BUY
May 05, 2015
$35.410
Stock price when the opinion was issued
Transportation
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This is an east coast railroad, and east coast ports will get more business (west coast ports are dysfunctional). They are minting money with coal shipping; Europe has de-nuclearized, so it needs other sources of energy. A long-term investment. Is down 16% this year, but has a lot of upside.
Transportation
CSX (CSX-N) or Union Pacific (UNP-N)? Using this as a constructive way of playing the strength of the US economy is proving not to work out. The US economy is not as strong as some had thought. They have a headwind in coal where about 20% of the revenue comes from that source. Oil only represents about 2%. Union Pacific is probably a little better run in terms of operating ratios, but a little more expensive. He would probably pass on both of these.