Opinion on  Union Pacific Corp. (UNP)     Sector: Transportation  >  Industry: Railroads
It's about coal...

 I recently noticed that trains are on a tear ever since the bottom...

So I kept wondering why they were running in an economy that is slowing down.

Then I turned to the master: http://www.thestreet.com/pf <wbr> </wbr> /funds/stoptrading/10401692 <wbr> </wbr> .html

The trains are carrying the coal... The one that countries like India and China need to burn to pollute the earth and grow their countries GDP at stupendously high rates.

Anyway, I figure these trains can easily become a major long term play here....

And a play on the election going Republican...

Look, if the US is the Saudi Arabia of coal, and these whipper snapper 10% GDP growin' countries can't run on oil alone... We are staring our next economic turn around play and associated energy bull market in the face.

I think at this point we need to buy all things domestic good ole made in the USA coal (except the shippers, that bubble seems to have burst already... though it is also on a comeback.)

All we need is John McCain or a brave Democrat to say... coal is our savior. (and convince the rest of the country too). Think of the great book titles that can come out of that one.

SO far, I think CSX, UNP, NSC, ME, BTU, are top coal plays and not necessarily in that order.

UNP ... trading at 18 times earnings (P/E). Based solely on estimates that are currently out there... At the end of 2008... with estimates of 2008 earnings averaging $8.36.  At the current multiple... You have a $152 stock currently priced at $127...
That's a 23.6% return... In a "bear market"

As is typically said by the master...Better than a sharp stick in the eye...
So.. is anyone else thinking they are staring their next position in the face?

Here is a little more to whet your appetite...

I can't take credit for all of this.