Union Pacific Corp (NYSE:UNP)
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Union Pacific is a leading rail freight carrier, its UP Railroad covering more than 32,000 miles in 23 states.
Union Pacific is a leading rail freight carrier, its UP Railroad covering more than 32,000 miles in 23 states.
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Fully valued near term; technically overextended at $126 - ride the train south from here for 10-15 pts within six months.
If you have already made your money on this one I say sell and sell right now. The housing and auto industries create huge volumes of business for the rail roads and both of these industries are going down the tubes. They keep saying that coal is king and getting them more volume in business but are they going to start shipping 2 times as much coal in the coming months to make up the volumes they lost from the auto and housing industries? I do not think so. On top of that gas is going down and many companies that had switched to rail will start changing back to truck. This always happens once the gas prices go down. Plus the rail are going to have to reduce their fuel surcharges with the falling fuel prices and this was a huge windfall of revenue for them.
good info...scroll down for all the way down on page for info. http://railfax.transmatch.com
There is no such thing as clean coal. This one is going down to the twenties along with CSX (already there) then NSC, CNI, CP, KSU and indirectly PACR. Not sure how BNI is doing it but it will soon be at $ 35 also if not in the next week then by the end of the month. Nobody is buying autos so no parts or raw materials to be shipped. Housing is down no new homes being built so no lumber, sinks etc that go into houses being buildt and that is just the regular homes and we are not talking about the commerical market. Also imports and exports are way down and probaby 50% of imports exports move on the rails. Plus desiel fuel is cheaper so alot of shippers are going to still use truck over rail. Just look at FDX, UPS, JBHT all of them way down. Also Pacer is the worst PACR thier stock is now at $ 2.00 yes that is two dollars and they moved most of their freight on the UPN and the majority of the PACR business was with the auto industry and the autos are in the toilet. That is going to hurt the UPN big time long term. http://news.yahoo.com/s/ap/20090307/ap_on_bi_ge/coal_campaign_2