The accompanying table includes the top 50 rated companies and statistics for the ETF Innovators (ETFI) Global Transportation PerformIdex, which is structured as an equally-weighted index with quarterly updates from a database of 225 companies included in the following five indexes:
The ETFI Global Railroad PerformIdex includes 41 companies with market caps over $200M and is structured as a market cap weighted index, with a total return of -12.7% over the past year, as compared to a decline of 20.7% for IYT in the last year and 22.8% for PTRP since its launch in mid-September. Benchmark transport ETFs already on the market include the iShares Dow Transports (IYT) (five duplicate companies) and the PowerShares Progressive Transport (PTRP) (nine duplicate companies
As evidence of a bullish long-term outlook for railroads, Warren Buffet's Berskshire recently increased its stake in Burlington Northern (BNI) and the CEO of Kansas City Southern (KSU), Michael Haverty, appeared on Larry Kudlow's show on CNBC Thursday evening, stating that rail transport was showing continued strength in the transport of coal, chemicals, and grains with weakness in the transport of consumer goods and housing related commodities. Berkshire paid $79.65 each to add 825,000 shares of BNI, upping its stake in
As evidence of increased commercial interest and product development for a variety of global transport ETFs, the following ideas have been either launched or filed: Claymore/Delta Global Shipping (SEA) (Aug. launch), PowerShares Global Progressive Transportation (PTRP) (Sep. launch), and SPDR Transportation (filed with SEC). The iShares Dow Transports (IYT) is easily the most popular transport ETF with investors, with $689M in net assets as of the market close yesterday as compared to $1.8M for PTRP and $4.7M for SEA.
Railroad companies represent a compelling investment theme despite the run-up in the stock prices of major U.S. players in the industry such as Warren Buffett favorite Burlington Northern Santa Fe (BNI), which Berkshire Hathaway owns nearly 64 million shares for an 18% stake . Railroad companies have pricing power as increased demand for the fuel-efficient transport of energy and agricultural commodities is combined with limited n
My proposed Global Railroad ETF (click on image for full-screen view) includes 28 stocks from worldwide markets with a minimum market cap of $250 million and includes companies from the United States, Canada, Europe, and Asia. CSX ( CSX ) was the best performing domestic railroad in the fund, producing over a 40% return in the last year, including dividends. Rather than trying to pick individual stocks in the railroad industry, my Global Railroad ETF would provide investors with a single investment vehicle that is globally diversified and leveraged to the transport of agricultu
Wednesday saw the stock market register another data point of ignominious distinction: the S & P 500 entered bear market territory -- a drop of more than 20% from its October 2007 peak.
One would like to make a case for a rebound for the S&P 500 and the DJIA, but current economic fundamentals (unfortunately) make a stronger case for the opposite: sky high gasoline and oil prices, declining disposable income in several income groups, ...
CSX Corporation provides rail-based transportation services in North America. The company offers traditional rail service and the transport of intermodal containers and trailers. It also provides coast-to-coast intermodal transportation services linking customers to railroads, through trucks and terminals. CSX Corporation transports crushed stone, sand and gravel, metal, phosphate, fertilizer, food, consumer, agricultural, paper, and chemical products. In addition, it delivers coal, coke, and iron ore to electricity generating power plants, as well as finished vehicles and auto parts. The
In a challenging market amid an uncertain U.S. economic landscape, identifying long-term, promising investment opportunities becomes a difficult task. Further, to make the investment equation even more challenging, there's election risk, as well, with the 2008 U.S. Presidential election five months away.
Still, risk-adjusted investment opportunities exist. Accordingly, here's a 'Fab Five' that should rank with the best the equity markets have to offer, 3-5 years out.
Readers of this space know that one of my preferred sectors is the railroad sector. The growth in international trade, the importance of commodity transport, and record-high oil prices mean the rails will play a central role in the nation's economy. And a railroad stock worth owning is CSX Corp.
CSX Corp (NYSE: CSX) operates the largest rail network in the eastern United States, with a 22,000-mile rail network in 23 states and two Canadian provinces.
In general, analysts see 9-12% revenue growth for both 2008 and 2009, with continued pricing power...
With option expirations last Friday, many of the options I had written have expired. Generally speaking that was a good thing for me, as it meant I was able to keep the option premium. It also meant that I had to reload many of the positions, which I did yesterday.
There were a couple of situations in which I would have done better by simply buying or selling the stock outright rather than selling the options. In other cases, I would have fared worse. Over the long term, I think the option writing strategy will be more rewarding and less risky than a stock-only strategy.
"The railroad sector is one of the few reliable groups in today's market; with solid pricing power, these companies have a solid future moving forward," says contrarian Chris Johnson.
"We are adding CSX Corp. (NYSE: CSX) as a long position to the Insightful Investor portfolio. Here's his look at the stock, and an options play for those seeking leverage.
"Last week, our Earnings Tip Sheet highlighted CSX as a bullish pick ahead of earnings. The stock was positioned for a jump according to our Behavioral Valuation approach. One week and
When a major, metropolitan U.S. newspaper discovers a investment trend or a hot sector, count on increased share demand for companies in the sector. When that paper is one of the top three dailies, in this case The Washington Post, count on even more demand.
Railway Stocks
- With rising prices in oil, people are moving to cheaper means of transportation to get commodities and other goods throughout the country. It is theref...
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The U.S. stock market's summer doldrums continue. 
Readers of this space know that one of my preferred sectors is the railroad sector. The growth in international trade, the importance of commodity transport, and record-high oil prices mean the rails will play a central role in the nation's economy. And a railroad stock worth owning is CSX Corp.
When a major, metropolitan U.S. newspaper discovers a investment trend or a hot sector, count on increased share demand for companies in the sector. When that paper is one of the top three dailies, in this case The Washington Post, count on even more demand.
