Proxy vote

CSX is mediocre if it wasn't it would be right up their with the BNSF as a hot stock to buy.

First of all:
Q1. Which railroad has the best one-year stock performance (last 12 months)? Answer: CSX
Q2. Which railroad has the best five-year stock performance (last 60 months)? Answer: CSX

You guys must be jealous that you didn't buy in five years ago as you projected the wheels falling off the bus!

Profits are being made because of fuel surcharges an industry wide pricing for shipping with the AAR

Fuel surcharges are only one component of income performance, and this is largely offset by higher fuel prices (fuel costs increased $157 MILLION IN THE Q1 ALONE Vs Q1 2007). And the pricing increases started in 2004... before fuel surcharges were significant. The railroad realized that (a) the market was turning with pricing power in favor of railroads and (b) yield management was used to cull non-contributory business from the system. Like it or not, CSX management did a great job of pulling up average revenue per car.

spatcher wrote:
Well not quite TCI but close. One of TCI's biggest backers, and someone one has purchased A LOT of CSX stock since TCI has got involved is Carl Ichan. He pretty much gutted TWA when he owned it. After he sold it all of its profitable routes he kept the money for himself. When he sold it off it was a shell of its former self, unable to compete anymore in the airline buisness. He smells blood with TCI and is trying to get his piece of the pie too.

Carl Icahn sold off his CSX stock around 5/15/08, so he's no longer a threat. Mabey TCI/3G's agenda wasn't compatible with his.

Cowford wrote:

CSX is mediocre if it wasn't it would be right up their with the BNSF as a hot stock to buy.

First of all:
Q1. Which railroad has the best one-year stock performance (last 12 months)? Answer: CSX
Q2. Which railroad has the best five-year stock performance (last 60 months)? Answer: CSX

You guys must be jealous that you didn't buy in five years ago as you projected the wheels falling off the bus!

You don't think numbers on the stock are being overinflated? I do. I've owned CSX stock for quite sometime so has a lot of employees. It appears even in that sector we're split with those wanting change and those afraid of change. Biggest fear downsizing which one way of accomplishing that feat would be Engineer only trains which CSX is already working on, so TCI/3G isn't the threat. RCO's became a downsizing tool and right now most have two operators but it'll go to one like in Rocky Mount and Hamlet, NC. I'm only commenting as an employee of a corporation that in my opinion is being run mediocre and can do a lot better with just some simple changes. Main one quitting the harrassment of it's employees and honoring contractual agreements. That right there would be a big boost in productivity.

Update: Just read an article from Zack's they have dropped CSX from a "hold" to "sell" because of overinflation pricing of CSX stock. Which doesn't bother me for when I bought CSX I'm still making money. It justs goes along with my theory instead of yours.

Totally agree with you that CSX stock is somewhat overinflated, but I'm not sure of what is your theory vs mine. To be clear, it's not management that's pumping up the numbers; it's being driven in large part by three things: 1) outside speculation, in part from the flap about TCI and buyout rumors. 2) improved fundamentals (improved operating stats, profitability,etc.) 3) market conditions (market continues to absorb pricing adjustments, fuel prices positively impacting rail, fairly stable volumes).

Remember that the stock was performing well BEFORE TCI came on the scene, due to (2) and (3). The P/E is now higher than other class Is, but not by an outlandish margin. CSX forecast near term is positive. Glad I own it? Yep. Would I buy more right now? Nope. Would I speculate on what'll happen in the future? Nope, but I'll go as far as saying any doom-and-gloom forecast on CSX as a company is baseless.

Btw, I can't comment on alleged harrassment in the field. If it's happening (and it appears that it does), I hope that everyone involved puts a stop to it fast. Secondly, one-man crews are an inevitability. It's not just CSX that is driving this... all the class 1s are. Many will dispute the term, but that's "progress" based on technological advances. No-one would want to bring back operators and cabooses in this day-and age, right? Fifty years from now, railroaders will sit back and say, "remember when we had two- and three-man crews?" Maybe they'll even say, "remember when we actually had engineers ON-BOARD road trains?"

COEN77 wrote:

spatcher wrote:
Well not quite TCI but close. One of TCI's biggest backers, and someone one has purchased A LOT of CSX stock since TCI has got involved is Carl Ichan. He pretty much gutted TWA when he owned it. After he sold it all of its profitable routes he kept the money for himself. When he sold it off it was a shell of its former self, unable to compete anymore in the airline buisness. He smells blood with TCI and is trying to get his piece of the pie too.

Carl Icahn sold off his CSX stock around 5/15/08, so he's no longer a threat. Mabey TCI/3G's agenda wasn't compatible with his.

OK then, never mind.......................

Theory wasn't what I meant it just sounded good at the time.

CSX should be making record profits just like the other class 1's. It just makes me nervous when I see it jump high to quickly which has been the case recently. It could be based on a lot of issues. One periodical that I read every quarter gives all class 1's performances CSX is always rated on the low end compared to the others for one operating ratios.

The harrassment of employees is going on and we don't see an end unless there is change. This might be where CSX will mess up employees own a lot of shares I'm hearing more people are sending in the blue proxy because their tired. The unions have been unsuccessful in eliminating violations of agreements it's rampant. CSX uses FRA regulations and kicks them up a notch even the FRA states that it wasn't their intention on how it's being interpeted when being used for disipline. One big target those with 25+ years or more. Being a union officer I do investigations when an employee gets a bypass in the case of oldheads it's simple give up the old ways it's their railroad do what they want let them make all the decisions no more quick moves unless they come up with it. Change is always difficult. A few years ago I applied for the UP out in Wyoming they notified me by voice mail 7 times for a new hiree trainman session which I rejected on the 8th someone from HR called I stated it was for a direct hire engineer only which was stated on my application and resume. UP's response your type of railroading is gone we want people trained our way which didn't make sense. My purpose to retire out west it was perfect giving them my last 7+ years. A lot of railroad experience will be gone in the next decade like an old song goes "I've forgetten more than you'll ever know".

Well I voted white.

I got the feeling TCI will just rape the company.

bingdude wrote:Well I voted white.

I got the feeling TCI will just rape the company.

Even if Mike Ward win's those voting against the present admin should be sending a message of discontent. Problem is it won't. Just like the unions they get a neasly 51% of the membership who bother to vote on a contract and a slim majority vote for passage they cry it's a major victory. Not in my world.

deleted/not relevant

This is about 5 candidates on a corporate board of directors not a buy out of CSX. This has gotten ridicules. This has gone from CSX suing TCI to congress holding hearings. It's not like news agencies haven't been manipulated in the past. Why is CSX calling in every marker of those in congress that they've bought out (excuse me, made political contributions)? If Ward has been doing the good job he keeping telling us about in every weekly white proxy we recieve in the mail there is nothing to fear. Actions speak louder than words, the excessive white proxies tell me something different.

Out-and-out protection of the status quo... I could heat my house for a month by burning all those white proxy notices! If fact, that's what I may do!

Anything new here? Did they finish counting the votes? Is Ward and crew still in employed? Since the Board meeting this seems to have totally dropped off of our local business pages.

I heard today that it may be resolved as early as tomorrow... an rumor says at least two, and possibly four board replacements.

If CSX was successful in maintaining all their board members there would be no delay. Mikey Ward is just killing time hoping a miracle happens to save his arse. The way CSX is being run change needs to happen from an employee's point of view. I'm not putting faith in any real positive change in the board if TCI/3G is successful. I'd just like to see those at the top at CSX squirm. CSX employee policies are draconian morale is at an all time low. The days of the task masters ended with the blood of those who formed railroad unions in 1863. Today those days are back and rail unions do nothing. We are on the verge of becoming a third world nation. We didn't need terrorist to scare us all we needed to do was look into the board rooms of major corporations.

Lighten up, man!

Ward was interviewed on Mad Money yesterday. Jim Cramer trashed TCI and could not have been more complimentary of Ward, calling him the best CEO in the industry. Many would take issue with that, but CSX had another solid quarter. Cramer himself said that while not final, TCI did in fact win four board seats.