Canadian National Railway posts
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It goes without saying that I favor the rails. And why not? The rails will play an important role in both containerized and commodity transport, moving forward, with a cost advantage over trucking, particularly if oil prices remain elevated. Continue reading Canadian National Railway knows efficiency matters
Canadian National Railway's (NYSE: CNI) stock has already climbed a lot, but it's still a bargain. Here's why:
CNI is, arguably, one of the world's most efficient railroads: Demonstrated cost controls, plus repeated increases in efficiency offer a "track record" that's hard to beat. The First Call FY2009/FY2010 EPS estimates for CNI are $2.91 to $3.36.
Railroad giant Norfolk Southern Corporation (NYSE: NSC) was up 10% in just the last week, based in large measure on super 4Q and FY2007 earnings released a week ago, January 22. Fourth quarter operating revenue increased 6% to $2.5 billion, and net income increased 4% to $399 million. What makes these numbers even more impressive is that Norfolk Southern posted revenue increases at the same time it faced significantly higher fuel costs and a measurable reduction in shipments by volume. Coal shipments dropped 2% by volume, while general merchandise shipments dropped a hefty 10% by volume.
The story is the same for FY2007 results. Revenue increased while shipments by volume decreased. And the railroad still made money. The stock closed at $45.07 on January 21, but closed at $52.00 on January 28. Very nice capital appreciation for a week. The company increased its dividend payout by 12% to $0.29 per share, a 32% increase over the last year, and the 102nd consecutive quarter of dividend payout. Clearly, Norfolk Southern is a stock for the very long haul.
| # | Blogger | Posts | Cmts |
|---|---|---|---|
| 1 | Joseph Lazzaro | 115 | 0 |
| 2 | Tom Johansmeyer | 104 | 0 |
| 3 | Steven Mallas | 52 | 0 |
| 4 | Connie Madon | 50 | 0 |
| 5 | Tom Taulli | 45 | 0 |
| 6 | Mark Fightmaster | 37 | 0 |
| 7 | Steven Halpern | 34 | 0 |
| 8 | Trey Thoelcke | 30 | 0 |
| 9 | Paul Foster | 24 | 0 |
| 10 | Brian White | 24 | 0 |
| 11 | Brent Archer | 22 | 0 |
| 12 | Jon Ogg | 22 | 0 |
| 13 | Jim Cramer | 21 | 0 |
| 14 | Melly Alazraki | 21 | 0 |
| 15 | Zac Bissonnette | 20 | 0 |
| 16 | Eric Buscemi | 17 | 0 |
| 17 | Michael Shulman | 13 | 0 |
| 18 | Elizabeth Harrow | 12 | 0 |
| 19 | Sheldon Liber | 10 | 0 |
| 20 | Michael Fowlkes | 10 | 0 |
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