Union Pacific Corp (NYSE:UNP)

"1 train can take the place of 280 trucks" - Warren Buffett

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

Now that the Keystone Pipeline expansion project has been nixed, the WTI Oil Terminal in Cushing OK will continue to be serviced by Rail only--UNP Rail !

Goods need to be delivered quickly & inexpensively. Rail accom
lishes this in todays economy.

12/18

UP is pumping out cash, ROIC has been increasing over the past 5 years (as has CROIC), Flow Ratio is below 1, and earning look to be growing faster than sales (over past 4/5 years). Would like to see it a little cheaper, but I think this is a great business, and I'm willing to pay up a little bit for it. All aboard.

American Business transport needs for Coal, Chemicals, and auto will improve in 2012.
More imports will allow the bi-modal revenue stream to increase also.

This is not about beating the market, at least in the short term. UNP is one of the few great companies as to which one can set up a TOTALLY FREE direct investment/drip plan. The plan is available at www.computershare.com.

I initiated with a very small $250 investment (the minimum), and a $50 monthly auto-withdraw from my bank account that will start next month. I'm tagging this because today the first $250 was withdrawn from my bank account. There are zero fees for my investment purchases, and zero fees for reeinvestment of dividends. That's not to say I'll just buy any company because there are no fees involved. But I have no problem including this company in my little portfolio.

I'm not so concerned about a huge margin of safety here, because the amounts are small, and this is just intended to be a twenty-year drip. Note you'd ideally want dividend stocks like this a tax-free IRA. I buy like this because I already otherwise max out my yearly 401k and IRA contributions.

I like railroads in general; just entered a long on CSX for five years, too.

In on UNP and CSX at current valuations; I'll wait out the possibility of a slowdown to add 3 more. Outperform call is easy.

Value investing screen with 9 or 10 rating

Very good business with tailwinds. Nice price here plus they will continue to benefit from a cost stand point vs. trucks. When the economy turns they will benefit as well.

If I were going to try to pick a stock that will still be trading 100 years from now, it would be Union Pacific.

fudging awesome

Profitable. Efficient. High barriers to entry. Railroads make great stocks.

Current Quarter vs. Prior Year: For the third quarter 2011, analysts estimate UNP will earn $1.85 per share, an increase of 18.63% over the prior year third quarter results.
+23.5%Annualized 5 Year growth rate
Growth Rates
1 Yr 3 Yr 5 Yr
+33.2% +17.0% +23.5%

fuel cost and commercial transpot'n, unp has more track leased out than any other railroad has.

I am basing this on the ever lengthening delays caused by the railroad on my way to work! :-(

Good old fashion business model that keeps costs low as gasoline prices go up

Leading railroad in the west. Carrying more coal as energy price goes up. Importing more Chinese products from the west.