Norfolk Southern Corp. (NSC)

"Helicopter" Ben's Policies Will Be Bad For Trucking In The Future

NSC will benefit from the upturn in the economy, as the USA economy recovers and grows, and as China imports coal for energy and steel.

solidperformance, sound management, reinvestment in track structure which is best of all class I railroads.

Recession is creating near-term pressure on margins. However, longer term railroad track and right-of-way's are irreplacable assests which will drive earnings and growth.

Better run than other railroads. Will take advantage of increased activity around eastern ports-especially Savannah. Good direct reinvest plan-but need to own stock first. Buffet believes in this stock as well

Best performing rail in the group, bar none. Owned this rail for 40 yrs or so. Never left me high and dry as they will always outperform their competition.

Very busy freight corridor with better than average profit margin among railroads. P/E <12. Debt under control for a railroad. Long term buy.

Railroads are hot, NSC has a lot of room to run.

WELL RUN RAILROAD IN ALL REGARDS

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Will benefit in the long term by the increasing price of oil. Additional fuel expenses more than offset by increased business and fuel surcharges to customers. May suffer along with the rest of the economy in the short term. Long term risks include decline of the U.S. auto and housing industries. The business is most dependent on shipping coal, but despite environmental concerns there appears to be very little decline in coal demand when the overall economy is taken into account. When the economy improves and the price of oil spikes, they should do very well.

This Berkshire holding boasts a substantial dividend yield, and has the necessary financial strength to weather a short to medium term "double dip" in the economy.

Solid business even when the economy is down. When the economy picks up it's business will only improve. With a 3.8% dividend yield and a payout ratio of 32% it pays you while you wait.

Railroads are the lifeblood of this country and tied to every major industry: industrial, energy, housing, biomed, tech, and even shipping.

Norfolk Southern has all the right numbers and also has a strong hold on the eastern half of the United States. Because UP hold the market share for everything west of Chicago, these two companies when held conjointly will ride a price increase wave on a swelling economy.

Improving economy

Here's one that worth the money and time. Like everything else current price beaten down and rail traffic has fallen over the last six months and I expect the rail traffic to fall a little bit further then start rebounding.

Looking at some historical data on this company from 1982 to current has shown this company can and does make money. Over time the share price has steadily risen and it's dividends continued during the last two recessions (90-91, 2000-2003) with no complications.

I believe this company will follow a recovery track similar to the 87-88 period. Especially, with increasing road congestion and gas/diesel prices increasing during the later half of this year hampering trucking companies. Granted, the trains use diesel as well but the efficiencies of the engine pulling capacity and this companies well maintained rail structure make it a great combination.

Rail is here to stay with the rise in oil prices. Little competition in the Atlantic region and access to all the large ports on the east coast.

Low PE Ratio, solid dividend, trading at half its 52 week high. They serve every major port on the east coast (New York, Norfolk, Charleston, Savannah, and New Orleans). Rail is far more efficient then traditional trucking and with climbing fuel prices and carbon cap and trade they will get more business. They are also a huge transported of coal which generates 49% of the electricity in the US. They have earned the E.H. Harriman Rail Safety Award (lowest person injury ratio) for 19 years in a row. This stock will be a winner as manufacturing rebounds and products need to be shipped.

Good company with good dividend.