Over the next 12-18 months, where are railroad stocks heading?

[LANDBARON]

????

[drdiederich]

Railroad stocks as in equity ownership shares? Or the number of railroads or rail cars?

[LANDBARON]

Stocks

[drdiederich]

It depends on the company... Norfolk Southern is hurting because of high fuel and decreased shipments, particularly coal, but others, specifically ones that move a lot on tracks running from Canada and N Dakota such as Union Pacific, Canadian Pacific, CNI and BNSF (part of Berksire Hathaway) are booming because the XL pipleline didn't get done. Refiners and drillers like Statoil, phillips and Marathon are moving lots of oil via rail as a result. Also, the drilling requires lots of sand which is also moved via rail so they have movement going both ways which is even more profitable than if not.

[roger7]

Barge rates on the water deficient Mississippi have jumped dramatically, rail rates have tagged right along. Going to be a lot of hopper cars needed to move grain from Northern production areas to mid-west and south consumption areas as well as beans to export ports. I don't follow rail stocks, but imagine they have already had a good run-up. As I recall Transports in general have had 3or4 good months. R7

[drdiederich]

Barge rates on the water deficient Mississippi have jumped dramatically, rail rates have tagged right along. Going to be a lot of hopper cars needed to move grain from Northern production areas to mid-west and south consumption areas as well as beans to export ports. I don't follow rail stocks, but imagine they have already had a good run-up. As I recall Transports in general have had 3or4 good months. R7

Indeed, also the producers of rail cars, specifically makers of hopper bottoms and tankers have also seen a rise in demand.

[LANDBARON]

Good stuff, thanks gals.

[joe_alzado]

railroad profitability current hinges on, movement of coal for electricity, to burn coal, to cool houses or to provide heat and cooling for houses. not a very capitalistic realization your stock is dependent on people wanting tobe in the lap of luxury, in an economy that houses are now a bad investment, due to unemployment and a decreasing us popluation.
because, electical consumption is now on the declined combined with alternative wind power, says electrical demnad is decreasing.

railroads and the movenment of toxic waistes gives them the same connotation as nuclear power plants that nobody wants to be next to one...

[LANDBARON]

Railroad tracks are popular in rural Iowa, great for walking and hunting pheasant.