Are UP stocks going up too fast?

I've been looking at UP stocks, BNSF stocks, CSX stocks and other railroad stocks. The way they've been going up in the last few years makes me think there will be a major crash or correction at some point. Will these stocks keep going up as long as fuel prices are going up? If fuel prices stop going up will these stocks go downhill fast?

Rate of increase is seldom an indicator of future collapse. If you study the analysis, you'll see that many consider UP to be a future value becasue of the way management is continuing to improve efficiency and productivity in the face of adverse conditions. The outlook is bullish for cost control and price increases that should maintain a decent rate of earnings growth. Fuel, though, is a strong headwind to overcome, even though railroads are many times more fuel efficient than other modes of transportation.

This post contains what may be considered to be forward looking statements, which should in no way be considered as predictors of future perrformance...

This is likely not the best place to discuss railroad stocks. Go to www.stockpickr.com or somewhere like that. I enjoy posting and reading here, but I don't always base my railfanning decisions on everything I hear here, and that involves the expense of an afternoon or maybe a drive in the car. I'm certainly not going to base decisions about my investment portfolio on things I hear here when it involves bigger money than my hobby.

Further, one number isn't going to determine the behavior of a stock, just the way the SD9043's success in the marketplace wasn't judged solely by it's horsepower number. Do at least 45 minutes of research/week for each stock you own or consider. Compare rates of return to competitors and similar industries and their stock prices. Look at who is investing in these stocks (Warren Buffet).

Conclusion: Don't base your investing decisions on what you hear at rr.net, and don't base them on a hunch or one set of numbers. Get your railfan info here, and make sure you have confirmation if you're driving far.