Class I Stock Discussion

For topics on Class I and II passenger and freight operations more general in nature and not specifically related to a specific railroad with its own forum.

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Class I Stock Discussion

Post by Jeff Smith » Fri Jul 19, 2019 11:56 am

DISCLOSURE AND ADMIN NOTE: This thread is for the discussion of Class I Stock, profitability, etc. RAILROAD.NET makes no representation or warranties as to the prospects of this stock or company; all risk is assumed by investors only. Publication of insider information is punishable under law. The views expressed herein are those of the member only.
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Jeff Smith
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Re: Class I Stock Discussion

Post by Jeff Smith » Fri Jul 19, 2019 11:59 am

Rough day: BostonGlobe.com
Stocks extend losses as railroads sink industrial companies

Stocks extended their losses into a second day on Wednesday as railroad operator CSX had its biggest drop in 11 years, pulling other industrial companies down with it. Banks also fell as investors worried that lower interest rates will hurt their profits going forward. Investors expect the Federal Reserve to cut interest rates for the first time in a decade at their next policy meeting in two weeks. The yield on the 10-year Treasury fell to 2.05 percent from 2.12 percent late Tuesday as investors headed for less risky holdings. CSX plunged 10.3 percent after saying it now expects its revenue to decline as much as 2 percent this year, after previously saying it expected growth. Investors read that as trouble for the entire industry and sent the stocks of other railroad operators lower. Union Pacific sank 6.1 percent and Norfolk Southern dropped 7.5 percent.
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Gilbert B Norman
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Re: Class I Stock Discussion

Post by Gilbert B Norman » Sun Aug 25, 2019 1:24 pm

The Wall Street Journal reports that railroad carloadings remain depressed with much of the blame attributed to trade wars and the continued displacement of coal as economy's primary energy source.

Fair Use:
Until recently, the train business was more than chugging along.

An industrywide move to implement “precision-scheduled railroading”—a system for trimming down wait times and boosting cargo efficiency devised by late railroading savant Hunter Harrison —led to widespread improvements in recent years. This model has been a boon for shareholders of America’s big listed railroads: Union Pacific , Norfolk Southern and CSX .

But the momentum from this transition is now fading. Old business lines like coal transport are slowly going away, and competition from trucking is on the rise. What’s more, if prolonged trade tensions weigh on economic growth, efficiency improvements could help rail operators get through it, but revenue declines will still be painful.

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