CSX Corp (NYSE:CSX)

CSX has upgraded its infrastructure to double deck all container shipments in its network. Twice the Freight for the same basic cost.

Pipeline

rated 10 out of 10 at moneycentral; headline pick, Keystone pipeline will not happen, potentially boosting railroad demand

Looks pretty cheap. They raised the dividend not too long ago.

low peg

trains!!!!

efficient transportation

http://www.fool.com/investing/general/2011/12/09/the-not-so-little-sector-that-could.aspx?source=isesitlnk0000001&mrr=0.17

I live close to a CSX freight yard and the number of carloads/freight trains has been increasing dramatically over the past few years, due to the rising price of gasoline. This is making it more profitable for long-distance freight haulers to load more and more trailers on flatbed cars to transport to freight train yards and having the truckers pick up the trailers from there. Railroading is also helping to containerize domestic cargo in much the same way ships starting doing back in the late 1950's.

Rail transportation is cheaper than truck, air, car, etc. With increased fuel prices... rail will be the way to go.
Beaten down with Euro worries, but data shows they are strong. When everything recovers it should outperform.

The balance sheets for CSX look solid and the CEO has been with the company 40+ years. The earnings are good and the dividend has been consistent. CSX looks like an all-around solid buy.

Strong cash flow, with fuel increases good distribution. Approved fare increases.

i expect csx to have more business with the trend upward of expenses for other means of shipping

Underpriced vs. peers. Value-adding management.

With fuel trending upwards for trucking, railways look good.

Feel safe giving this an outperform over the next 5 years. I expect auto parts/finished autos to increase, total cargo to increase, and don't think coal regulations are a real threat. An end to cheap coal doesn't mean an end to coal production, it just means it has to get shipped internationally to be used.

rails will continue to be the most economic means of transporting goods and materials. They aren't going anywhere.

value

I saw a couple of explanations on seekingalpha for why the stock sold off 8% today. One was that Obama's high speed rail initiative wasn't getting funding in Congress. The other is that some coal company forecasted slightly weaker than expected output for steelmaking coal. 8%? On that? Well, okay. Feel free to sell if you want to, but it looks to me like this railroad is probably going to survive the terrible news of the day that sent it down 8%.