"Once written off as a 'sunset' industry, North American railroads are making money hand over fist. In short, the railways are benefiting from a rising tide and the companies have a lot going for them," notes Canadian analyst Tom Slee.

The contributing editor with Internet Wealth Builder explains, "Here's a look at my newest recommendation, Canadian Pacific Railway (CP), as well as my long-time favorite, Canadian National Railway (CNI).

"Last year the six major carriers posted a 45% average growth in earnings as they booked increased volumes and increased rates.

Continue reading Canadian Pacific and Canadian National: Riding the Rails

Canadian Pacific and Canadian National: Riding the Rails originally appeared on BloggingStocks on Tue, 29 Mar 2011 12:30:00 EST. Please see our terms for use of feeds.

"There's a little paradox in the identity of Seaspan (SSW), a company that specializes in container ships, which it acquires, crews, maintains and sails over the Seven Seas," suggests Paul Goodwin.

The global specialist suggests, "The paradox is that, despite all that ship-owning and sailing, Seaspan isn't actually a shipping company -- rather, it's a ship leasing company.

In his Cabot China & Emerging Markets Report, he continues, "Hong Kong-based Seaspan's business model is based on long-term leasing of its 57 container ships to companies that have goods to deliver.

Continue reading Seaspan (SSW): Shipping Returns

Seaspan (SSW): Shipping Returns originally appeared on BloggingStocks on Wed, 23 Feb 2011 10:00:00 EST. Please see our terms for use of feeds.

"Transportation stocks are a traditional harbinger of future economic growth. After all, physical goods must be shipped for customers to take delivery," says Mark Skousen.

The editor of High Income Alert explains, "We turn to this sector for our latest featured recommendation: Overseas Shipping Group (OSG).

This is a company that has survived and prospered during multiple shipping cycles. Its balanced portfolio of vessel types and charter mix optimizes annual revenue. And that revenue topped $1 billion during the last 12 months.

Continue reading Insider Targets Overseas Shipping (OSG)

Insider Targets Overseas Shipping (OSG) originally appeared on BloggingStocks on Thu, 23 Sep 2010 13:00:00 EST. Please see our terms for use of feeds.

Teekay Offshore Partners (TOO), a master limited partnership, transports and stores crude oil to offshore oil drillers; it operates the world's largest fleet of shuttle tankers, which carry oil from offshore production and storage facilities to onshore terminals," notes income expert Carla Pasternak.

The editor of High Yield Investing explains, "The partnership was designed to increase distributions, both to its parent company and to unitholders like you and me.

"The company holds a 75% share of the UK North Shore shuttle market and is the largest shuttle operator in Brazil. The partnership also operates a fleet of floating storage and floating storage production units, as well as crude oil tankers that carry oil across the seas.

Continue reading High Yield from Teekay Offshore Partners (TOO)

High Yield from Teekay Offshore Partners (TOO) originally appeared on BloggingStocks on Tue, 22 Jun 2010 10:40:00 EST. Please see our terms for use of feeds.

The contributing analyst with Internet Wealth Builder explains, "An upward movement in the Dow Industrials is only sustainable if confirmed by the Transports. As traders say, one 'makes', one 'takes'. Further, the Transports have led every major rally since 2004. So with our canary alive and well, I remain very encouraged."

Continue reading Ride the Rails: Canadian Railway (CNI) and Norfolk Southern (NSC)

Ride the Rails: Canadian Railway (CNI) and Norfolk Southern (NSC) originally appeared on BloggingStocks on Wed, 31 Mar 2010 10:00:00 EST. Please see our terms for use of feeds.

"Burlington Northern is my preferred choice in the railroad industry. At first glance, Burlington Northern had a particularly bad first quarter.

"Profit was $0.86 a share, down sharply from $1.30 a share the year before. However, when unusual items such as an unfavourable coal rate decision are excluded, operating earnings amounted to a much more acceptable $1.13 a share, well above the 96c analysts were looking for.

Continue reading Burlington Northern (BNI): On the right track

Burlington Northern (BNI): On the right track originally appeared on BloggingStocks on Fri, 22 May 2009 15:00:00 EST. Please see our terms for use of feeds.

After the airline went through bankruptcy twice, turnaround expert George Putnam now sees improving long-term prospects for US Airways (NYSE: LCC).

In his The Turnaround Letter, the advisor suggests, "When travel does begin to pick up again, US Air with its lean cost structure should profit handsomely." Here's his review.

"US Airways began in 1939 as All-American Airways delivering mail to Western Pennsylvania and the Ohio Valley; from there it grew through acquisitions to be a major national airline.

Continue reading Turnaround expert: Blue skies for US Airways (LCC)?

Turnaround expert: Blue skies for US Airways (LCC)? originally appeared on BloggingStocks on Tue, 19 May 2009 10:40:00 EST. Please see our terms for use of feeds.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"Fluor (NYSE: FLR), my top pick for 2009, is a global heavyweight in the engineering, procurement, construction and maintenance field," says noted value investor Nathan Slaughter.

The editor of Half-Priced Stocks explains, "2008 won't go down as one of the most memorable for Fluor shareholders -- but 2009 is likely to tell a different story.

"Texas-based Fluor began by building oil refineries over a century ago and has since expanded its repertoire to encompass other specialties including power, telecommunications, and transportation. Annual revenues are now $20 billion.

"In early December, President-elect Obama unveiled ambitious plans for a hefty economic stimulus package, spearheaded by a pledge to rebuild highways and complete other public works projects that will revitalize our aging infrastructure.

"These bold initiatives are aimed at putting workers back on the payrolls and reinvigorating the nation's economy -- but they will also funnel billions into the coffers of construction firms like Fluor.

Continue reading Top Stock Picks '09: Fluor (FLR)

Top Stock Picks '09: Fluor (FLR) originally appeared on BloggingStocks on Fri, 02 Jan 2009 10:00:00 EST. Please see our terms for use of feeds.

"It's hard to find any good news these days but I was pleasantly surprised with the third-quarter railway results, as almost all of the 'class 1 carriers' reported better than expected earnings," notes analyst Tom Slee.

The contributing editor to Gordon Pape's Internet Wealth Builder explains, "Several rail stocks are starting to look attractive at these depressed levels and Burlington Northern (NYSE: BNI) remains my preferred choice in the group." Here's his outlook.

"Even with the economic downturn starting to bite, reduced fuel costs and increased freight rates offset lower volumes. Equally important, the companies remain cautiously optimistic despite the miserable outlook.

"They are confident that further freight rate price increases in the 4% to 5% range are sustainable and will still allow them to undercut inefficient truckers.

"Unfortunately, none of this prevented the stocks from being battered during the market collapse. However, I think that fourth-quarter profits are likely to remain strong and the longer term outlook for railroads remains favorable.

"Burlington Northern continues to power ahead. A shrinking economy must eventually take its toll but there was no sign of any weakness in BNI's third-quarter results. Operating earnings came in at $1.91 a share, up 29% from $1.48 in 2007.

Continue reading Burlington Northern (BNI): On the right track

Burlington Northern (BNI): On the right track originally appeared on BloggingStocks on Thu, 11 Dec 2008 10:10:00 EST. Please see our terms for use of feeds.

"If there's one sector that stands to benefit handsomely from a further slide in oil or, at least, a moderation in crude's rally: the airlines," explains energy sector expert Elliott Gue.

In The Energy Strategist, he says, "Airlines may make a terrible long-term investment but can be an outstanding short-term trade." Here he looks at Delta Air Lines (NYSE: DAL) and, for the even more speculatively-inclined, US Airways (NYSE: LCC).

"Some investors will rightfully cringe from any mention of this sector; after all, the airlines have consistently lost money throughout their post-deregulation history.

"Most of the majors have declared bankruptcy on multiple occasions since that time. However, we've traded the airlines on a few occasions; we took some triple-digit percentage gains in the airlines back in 2005.

"The airlines' leverage to oil prices is well known. Expectations are so low, in fact, that several major air carriers actually managed to beat consensus expectations in the second quarter.

"And although sentiment is already at rock-bottom, there's a real basis for cautious optimism. First, if I'm right about oil, fuel costs won't rise appreciably in the third quarter. This huge headwind is dissipating.

Continue reading Speculative flyers: Delta (DAL) and US Airways (LCC)

Speculative flyers: Delta (DAL) and US Airways (LCC) originally appeared on BloggingStocks on Tue, 05 Aug 2008 11:30:00 EST. Please see our terms for use of feeds.

"Railroads are a play on three big secular themes: the drive for increased energy efficiency, growth in coal and the agriculture boom," says Elliott Gue, a energy sector expert who has just returned from Japan where he was covering the G8 Summit.

Meanwhile, in his The Energy Srategist, he states, "Railroads are now among the most fuel-efficient forms of freight transport available." Here, he offers a bullish review of Union Pacific (NYSE: UNP).

"My long-held thesis on the group has been that the railroads are no longer totally dependent on the US economy for their growth.

"It's no longer appropriate to look at this sector as viciously economy sensitive. The traditional relationship between the broader market and the rails has been breaking down for several years, but this trend appears to be accelerating.

"In 2007, according to the Association of American Railroads (AAR), the average railroad moved a ton of freight a distance of 436 miles on a single gallon of diesel fuel. That makes freight trains roughly three to four times more fuel efficient than trucks.

"Union Pacific is the largest railroad in the US and has long been one of my favorites. The company's network is nearly 33,000 miles long and is concentrated in the West and Midwest. It also offers a convenient example of the bullish forces at work for the rails, particularly in the coal and agriculture industries.

Continue reading Union Pacific (UNP): 'Railroad renaissance'

Union Pacific (UNP): 'Railroad renaissance' originally appeared on BloggingStocks on Thu, 17 Jul 2008 12:58:00 EST. Please see our terms for use of feeds.

"The railroad sector is one of the few reliable groups in today's market; with solid pricing power, these companies have a solid future moving forward," says contrarian Chris Johnson.

"We are adding CSX Corp. (NYSE: CSX) as a long position to the Insightful Investor portfolio. Here's his look at the stock, and an options play for those seeking leverage.

"Last week, our Earnings Tip Sheet highlighted CSX as a bullish pick ahead of earnings. The stock was positioned for a jump according to our Behavioral Valuation approach. One week and a positive earnings report later, we're looking to increase our exposure to the company.

"CSX has now reported earnings results that handily beat both the analyst forecast and the whisper number. The company overcame softness in some sectors through increased shipments in ethanol and grain as well as increased foreign demand for coal.

"Rail companies appear strong moving forward, given that rising crude oil prices are forcing companies to use more cost-efficient means to ship their goods.

"What's more, CSX was the first of the 'big four' rail companies to report earnings. The company should thus benefit from positive reports when its competitors enter the earnings confessional.

Continue reading Riding the rails with CSX Corp. (CSX)

Riding the rails with CSX Corp. (CSX) originally appeared on BloggingStocks on Mon, 28 Apr 2008 12:25:00 EST. Please see our terms for use of feeds.

With Warren Buffett in the news recently, it is timely to look at a recent report from Paul Tracy, highlighting some of the best-positioned stocks currently held by Berkshire Hathaway (NYSE: BRK.A) -- Burlington Northern Santa Fe (NYSE: BNI) and WABCO Holdings (NYSE: WBC).

Here, the editor of StreetAuthority Market Advisor explains, "Buffett looks for such factors as intrinsic value, low debt, managerial expertise, a margin of safety and an 'economic moats' that offers some sort of sustainable competitive advantage." Here's a pair of transportation stocks that fit the bill.

"While many investors fret over the current volatility in the stock market, Warren Buffett is likely busy looking for value. Historically, in volatile up and down markets, Buffett has found even more opportunities than in raging bull markets."

"Burlington Northern Santa Fe is the second-largest railroad in the U.S. Berkshire holds an 18.2% stake in BNI, recently boosting that stake by purchasing 11 million shares to bring its total ownership to more than 63 million shares. Buffett has made no secret of his desire to purchase more of the stock.

"The key to discerning competitive advantages between the major railroad firms lies in the strategic location
of their networks. Specifically, BNI has the largest network of track in a region of the western U.S.
known as the Powder River Basin, which is home to America's largest reserves of coal.

Continue reading Rails and trucks: A look at two Buffett stocks

Rails and trucks: A look at two Buffett stocks originally appeared on BloggingStocks on Wed, 20 Feb 2008 11:38:00 EST. Please see our terms for use of feeds.

YRC Worldwide is ready for the long haul originally appeared on BloggingStocks on Thu, 07 Feb 2008 16:00:00 EST. Please see our terms for use of feeds.

"The commodity bull is awakening," says Curtis Hesler, editor of the Professional Timing Service. The advisor, who focuses on long-term market cycles, explains, "We have been through a long stretch where everything, including gold mining stocks and oil issues, have gone up and down in tandem with the movements in the popular averages (Nasdaq, Dow, S&P 500, etc.).

"We are going to enter a phase now and through 2008 where this will no longer be the case. Next year looks like it will be a very profitable year for commodity-related (real asset) issues, but dismal for financial (paper) assets.

"I am looking for $100.00 crude oil (as well as a move to $850 in gold). This should be the basis for your strategy. The commodity bull will thrive in 2008 at the expense of the general market, and the weak dollar will be no small reason for this.

Continue reading Best energy ideas: Two votes for Nordic American Tanker (NAT)

Best energy ideas: Two votes for Nordic American Tanker (NAT) originally appeared on BloggingStocks on Sat, 20 Oct 2007 14:20:00 EST. Please see our terms for use of feeds.