All I will say is GO UPRR! Congrats on the recommendation[:D]
It was a Wall Street recommendation. We all know how accurate they can be…
Besides, Jim Cramer was just talking about making an ethanol play.
LC
Well if you bought UPRR over a year ago you loved it. No the ADM ethanol piece was quite seperate from the UPRR recommendation [:D]
Don’t even get me started on the UP…
Rail Stockwatch would be worth reading for an investor-
http://www.tmrail.com/pages/1/index.htm
Click here to view a sample monthly issue using Adobe Acrobat® Reader
Click here to view an expanded quarterly issue using Adobe Acrobat® Reader
I worked with Tom briefly on a project and can say that he’s a diligent researcher and careful with facts. Very knowledgeable. On a particularly controversial point, he not only exercised good judgment in its disposition, he handled it quite gracefully. No one could disagree. An experienced industry insider, his recommendations would rate very high with me.
Best regards, Michael Sol
But I thought BNSF delivered ethanol trains to the L.A. Basin. Is UP now doing the same?
Can’t agree. His point was that UP stands to benefit from the ethanol movement.
LC
Well if you bought UPRR stock a year ago you would be loving UPRR today[:D]
If anyone is interested in the financial side of railroads I suggest they log on to the last set of quarterly conference calls with the Wall St. anaylists. The can be found under the investors tab at the Class I web pages.
These will come in two sections : managements review of the quarter and Q&A with the anaylists. The first part will give you managements and is usually rather boring (except for the UP’s tornado alert). The second part is can be very interesting. Issues come up like when will CN’s success going to run out of gas and Jim Young tone of voice when talking about open access.
Please do, I’d loooove to hear it.
UPRR is a good stock to buy right now because it s getting closer to “splitting” which means if you buy 1,000 shares now, it will become 2,000 shares or more, depending when they decide to split it and the ratio.
BNI, NSC and CNI are all good picks right now, stay away from KCS, it seems to be doing relatively weak
By the way, this is my estimate, don’t invest your money because of what I said. I have been known TO BE WRONG. These stocks are doing well now, it may not mean they will be doing next month…I am not at fault for your own stupidity by taking a history majors advice on finances.
Stock splitting is not a valuation enhancer.
Would you rather have 2 - $10 bills or 1- $20 bill? Same with stock splitting.
Rails are hot now and have been for quite some time. They are near their normal highs for trading multiples (PE ratios). Earnings are solid and are growing as the economy keeps moving forward. Volumes are really growing as rails are a play on the energy situation.
I think the rails have a little more run in them, but the big run might have already occured. Just my opinion.
ed
It s a good sign though, it may not increase your value but it makes investors happy for one big reason, it tripped the limits.
anyways it depends on what you want to do with the bills 
if your going to buy a bottle of a soft drink, might prefer the 2 10 dollar bills, LOL
Yep I’m waiting for that to occur with bated breath. Then say after a 3-1 split it goes back up to its current ptice & stockholders now will be smiling all the way to the bank. [:D]
If you are buying stock long term then a stock split is to your advantage as lets say you have a 100 shares & the stock is now at $90.00. Now the stock is split 3-1 so the stock now sells at $30.00 but you now have 300 shares. Now the shares continue to rise & 18 months friom the stock again reaches $90.00 so your new worth is $27,000.00 instead of the $9,000.00 you started with. Tripled your money I am sure most investors would like to do that every day of the year. It’s like buying a penny stock & sitting back & watch it rise to over $6.00 per share[:D]
spbed:
Do you have a list of those penny stocks that are guaranteed to hit $6? Would love that list!
There are some benefits of a stock splitting. But for the most part it is simply a form of currency.
Interestingly, take a look at Berkshire Hathaway, the legendary stock in which Warren Buffett is the Chair and CEO, with his able sidekick, Charlie Munger. The stock is currently at $89,280 per share…it has never split. Warren Buffett doesnt split his stock.
ed
I agree Ed. The number of shares of stock doesn’t change the valuation of the company – it merely dilutes the shares. However, there is a little more to it. My understanding on this is that there is a “natural” area in dollar terms, in which the average investor [read: unsophisticated investor] will purchase stock in a company. Accordingly, companies that rely on the “average investor” like to keep their stock price within that range. There is a rebound effect. When a company like UP splits its stock, it looks better to the “average investor” who has been conditioned by a stock run-up to look at share price as something accessible or inaccessible. At $35, that’s accessible. At $90, it’s not.
Pure psychology.
So, at $40, more of the “average investors” are willing to buy. Historically, such a split generates a 20% or more automatic bounce as “average investors” – thoroughly conditioned by $80 shares – flock to fill out their portfolios further at the suddenly more accessible stock price.
As Berkshire Hathaway shows, sophisticated investors, and companies owned by sophisticated investors, don’t play that game.
However, that also distinguishes public corporations that are management controlled from corporations that are owner controlled.
Can’t speak to UP with any specific background, but at BNSF, over the past 8 or 9 years or so approximately one-third of the total outs
If I find another penny stock I will dial you up that is going from pennies to dollaes. Do a historical on HLSH.PK on Yahoo from 01/03 till now. It is now in the mid 4s but at one tome had run up to over 6 & in the time frame I gave you & it started at very small pennies.
Most times split occur when the price of the stock is what the BPD decides is to hi for the average investor out there to afford so they split the stock to make the price more attractive to the average investor. Maybe the company you mentioned does want a average investor & just because that company may not split it stock does not mean another one will or would not. If you look at UPRR in about a year it is up around $30.00 per share . Which means a pretty good 1 year return on your money already… Now if there BOD decided to split you have more shares if it again began a upward trend after the split price if they do noy adjust the cividend you are getting more $$$$$ as you have more shares after the split & you would still be making MORE money since you have more shares if the stock conyinues its upward spike. All that leaves me smiling if it was to occur even though I am in since last year so I am already + $30.00 per share.already Not bad for around a 1 year investment [:D]
CSX has been good for the last few days.