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is this thing really still climbing>?
wow watta chart!
Panama Canal expansion—bearish for UNP: #msg-71474512.
I haven’t followed the company closely since selling out in October (#msg-68423466). Sorry I can’t be of more help. Regards, Dew
Opinions on stock dropping?
SJO
why unp going sub 100?
sjo
UNP is a fine company, but my asset allocation was a little bit over-weighted in industrials, so I decided to take profits on UNP and BA. I might buy back UNP at some point. Regards, Dew
UNP p/e is still incredible. Happy to see it over 100 now. Back on with the trend line. Hoping for 145 mid 2012.
wow. thanks for everything so far. don't see 145 in the future? Or your just up a big amount?
I’m using today’s rally to cash out of UNP and have resigned as moderator. Good luck to UNP shareholders.
great DD as usual....UNP is a huge winner. Especially from the options side. I'm long until 2013.
North Americas carloads reached a 3-year high in the week ending 10/1/11:
http://www.bloomberg.com/news/2011-10-06/north-american-rail-freight-carloads-for-oct-1-table-.html
Recession?
In other railroad news, Obama appointed a mediation board to avert a labor strike between US railroads and several of their unions:
http://www.bloomberg.com/news/2011-10-06/rail-strike-threat-blocked-as-obama-said-to-create-emergency-review-board.html .
thanks for this. IMO...UNP is one of the best buys right now during this fire sale. I have UNP CALL Options that expire in January 2013. 145$ calls. I think its a great investments. Could really go to 30$. Currently at 1$. Should be 5$ but is undervalued due to panic.
Good read from Fortune on why UNP has been so successful at making money:
#msg-67109669
Feds Cut Filing Fee for Rail-Rate Complaints
http://online.wsj.com/article/SB10001424052702303365804576432001286479180.html
›JULY 7, 2011, 3:02 P.M. ET
By JOSH MITCHELL
WASHINGTON—U.S. regulators Thursday substantially reduced fees that rail customers must pay to challenge freight-railroad rates, in a move expected to lead to more government investigations into industry pricing and practices.
The move by the Surface Transportation Board, the agency that regulates the rail industry, is a victory for farmers, manufacturers, chemical companies and other shippers that have long accused the major freight-railroad companies of charging exorbitant prices.
Under the new rules, the price for filing a complaint on railroad rates or unreasonable practices will drop to $350 from $20,600. Shippers have argued that high rates pose a significant barrier in seeking action against rail companies that overcharge for the transportation of goods and commodities.
The board said in its ruling that the move was intended to give shippers' more power to challenge rates. It said high fees "may be having a chilling effect on shippers and other entities seeking to bring a complaint to the Board," and that lowering the fees could lead to more complaints.
A spokeswoman for the Association of American Railroads, the industry's main trade group, couldn't immediately be reached for comment. The association represents the four major Class I freight-rail companies: Berkshire Hathaway Inc.'s Burlington Northern Santa Fe, Norfolk Southern Corp., Union Pacific Corp. and CSX Corp.‹
Good Barron’s piece on UNP from Jan 2011: #msg-58573323.
Railroads, Shippers Face Off: #msg-64603972.
UNP Posts Solid Quarter But Shares Slip: #msg-62359118.
Rising Rail Shipments Corroborate U.S. Expansion: #msg-61994065.
UNP Reports Solid 4Q10 Results, Bullish Outlook:
#msg-59078969
Im looking for 20 to 23% gains this Qtr over same Qtr last year. Should be a great earnings release! I dont think this train is gonna even think about slowing down until about 84 to 86$ PPS
Nebraska and Wyoming Residents and Officials Learn About
Crossing and Pedestrian Safety Onboard Special Train
https://www.uprr.com/newsinfo/releases/safety/2009/0420_ne_wy_oli.shtml
On Board the Operation Lifesaver Train, April 20, 2009 – A special passenger train is making stops this week in several Nebraska and Wyoming communities over Union Pacific Railroad lines to promote highway-railroad crossing and pedestrian safety through a program called Operation Lifesaver.
"Operation Lifesaver" is the nationwide, non-profit public safety education and outreach program designed to eliminate collisions, deaths and injuries where streets and roads cross railroad tracks at grade and on railroad rights-of-way.
Hundreds of residents, community leaders, law enforcement officers and education officials will be learning about highway-railroad grade crossing safety and the consequences of trespassing on railroad property.
"This special train is just one way we can work to educate and call attention to highway-railroad grade crossing and pedestrian safety. We always look for unique ways to deliver our safety message to the general public and civic leaders," said Chad Wilbourn, general superintendent - transportation services - North Platte Service Unit.
During the train's tour across Nebraska and into Wyoming April 20 - 25 stops are being made in the Nebraska towns of: Ogallala, Chappell, Kimball, Gering, Lexington, Kearney and Hastings and Lusk, Wyo.
Guests are getting a rare opportunity to see what train crew members see because video cameras are mounted in the locomotive cabs broadcasting to television monitors in the passenger cars.
While civic and education leaders were learning about highway-railroad grade crossing and pedestrian safety, law enforcement officers reviewed "Officer on the Train" activities.
"Officer on the Train," one part of the Operation Lifesaver program, provides police officers the opportunity to ride on trains and observe motorist behavior at highway/railroad grade crossings. If a motorist violates the grade crossing traffic laws, the police officer on the train radios to an officer near the crossing, who can issue the motorist a citation.
About Union Pacific
Union Pacific Corporation owns one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country. Union Pacific serves many of the fastest-growing U.S. population centers and provides Americans with a fuel-efficient, environmentally responsible and safe mode of freight transportation. Union Pacific's diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad emphasizes excellent customer service and offers competitive routes from all major West Coast and Gulf Coast ports to eastern gateways. Union Pacific connects with Canada's rail systems and is the only railroad serving all six major gateways to Mexico, making it North America's premier rail franchise.
For further information, contact Mark Davis at (402) 544-5459.
The statements and information contained in the news releases provided by Union Pacific speak only as of the date issued. Such information by its nature may become outdated, and investors should not assume that the statements and information contained in Union Pacific's news releases remain current after the date issued. Union Pacific makes no commitment, and disclaims any duty, to update any of this information.
Union Pacific and Progress Rail Services Support Testing on New Intermediate-Haul Locomotive Technology
https://www.uprr.com/newsinfo/releases/environment/2009/0415_locomotives.shtml
Omaha, Neb., April 15, 2009 – Union Pacific and Progress Rail Services are supporting testing on a low-emission locomotive at the Southwest Research Institute in San Antonio, Texas. Testing, the first of its kind for intermediate-haul locomotives, is scheduled to begin later this month.
Originally built in the 1970s, the SD40-2 locomotive has been re-powered with a 3005 horsepower Caterpillar engine. Caterpillar's low-emission, clean diesel engine – model 3516C-HD – surpasses EPA Tier 2 locomotive emissions requirements. It incorporates advanced emission control technologies that have been tested successfully in a laboratory setting and will be tested for service on intermediate-haul routes. The engine has more power than the typical 2000-horsepower Genset switcher locomotive used around terminals, but is less powerful than the traditional 4400-horsepower line-haul locomotives used for transcontinental freight service.
The equipment has not yet been fitted onto a full-scale locomotive platform or used in an operating environment. Union Pacific, partnering with Progress Rail Services, initially will field-test this locomotive in a controlled local application to closely monitor its performance and durability over the testing period.
About Union Pacific
Union Pacific Corporation owns one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country. Union Pacific serves many of the fastest-growing U.S. population centers and provides Americans with a fuel-efficient, environmentally responsible and safe mode of freight transportation. Union Pacific's diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad emphasizes excellent customer service and offers competitive routes from all major West Coast and Gulf Coast ports to eastern gateways. Union Pacific connects with Canada's rail systems and is the only railroad serving all six major gateways to Mexico, making it North America's premier rail franchise.
About Progress Rail
Progress Rail, a Caterpillar subsidiary, is one of the largest providers of outsourced maintenance and repair services to the railroad industry in North America. It is headquartered in Albertville, Alabama, and currently has more than 100 facilities throughout the United States, Canada and Mexico. Its customers include all of the major North American, or "Class 1" railroads, as well as regional railroads, public transit authorities, private car owners, railcar builders and lessors, and foundries for steel scrap. Additional information at www.progressrail.com.
About Caterpillar
For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2007 sales and revenues of $44.958 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More inforamtion is available at www.cat.com.
For further information, contact Tom Lange at (402) 544-3560 or tomlange@up.com.
The statements and information contained in the news releases provided by Union Pacific speak only as of the date issued. Such information by its nature may become outdated, and investors should not assume that the statements and information contained in Union Pacific's news releases remain current after the date issued. Union Pacific makes no commitment, and disclaims any duty, to update any of this information.
The Freight Industry Has A Great Load To Bear (CSX, UNP, BNI, CNI, NSC)
April 17, 2009
By Greg Sushinsky
While a large portion of the country prepares for (and, in some cases, has already begun) a rebound in the stock market, certain industries continue to plummet. Freight companies, like CSX Corp. (NYSE:CSX), are unfortunately among the latter.
CSX reported first-quarter earnings that dropped by 30%, as it carried lower freight volume. Revenue fell by 17% to $2.2 billion, while net income was $246 million, or 62 cents a share (down from $351 million, or 85 cents per share, in the previous year's same quarter). The report showed the pressure the freight industry was under while CSX, the nation's third largest carrier, continued with cutbacks and furloughs. The earnings did beat analysts' estimates.
Rails are Still Central
Despite this being the virtual age, goods are tangible and must be made and shipped, so the transportation and freight industry is still critical. In mid-March, with the Dow Jones Transportation Average (DJTA) sporting the better part of its 40% rally, things were looking up. Union Pacific (NYSE:UNP) stock popped 5% after an upgrade with the idea that spring farm work would increase, along with an optimistic view that chemical and autos would rebound, yet the stock has been stuck for obvious reasons: the industrial uptick didn't happen.
Burlington Northern Sante Fe Corp (NYSE:BNI) looked poised for big things. The railroad is nicknamed "The Buffett Railroad" for its famous investor, Warren Buffett, who was still picking up shares as recently as January to bring his stake in the railroad to 21.8%. Though the railroad has been described as "ailing," the stock had a great fourth-quarter earnings report, unlike CSX, yet also has gone nowhere. The decent Burlington Northern earnings were largely from lower fuel costs and higher surcharges on its customers. How much pricing power the railroad will have going forward in this heavy recession is a matter of concern.
Canadian National Railway (NYSE:CNI) is still feeling the heat north of the border as it is also fighting to hold the line on earnings. The Canadian economy, which is rich in natural resources that are a staple for rail transport, is also tied heavily to the U.S. economy, and intimately so for Canadian National, as it has many routes which routinely criss-cross the U.S. in its daily business. There is potential for Canadian National to pull out of the rail doldrums first, if the Canadian minerals and forest products spring back before heavy industries or U.S. retailers do. (Learn more in Build Your Portfolio With Infrastructure Investments.)
Norfolk Southern (NYSE:NSC) had a similar story to CSX, in that it reported lower freight volume at the end of January but made out with pricing power. With all the major railroads reporting similar dynamics, it's confirmed the industry-wide nature of the conditions and trends. Some, such as Norfolk Southern, may have managed around these conditions better than others, as its earnings increased 13% year-over-year in that fourth quarter. As good as Norfolk Southern is, neither they nor any of the other major railroads seem to have any special elixir for overcoming the ongoing slowdown in freight traffic.
Look for a Business Catalyst First
While lower fuel costs, improved pricing power and expert management can help the bottom line, the economy has to improve to reverse this trend. In addition to CSX furloughing workers, it's putting some of its engine fleet temporarily down, so these are not signs of confidence in a short-term turnaround. Without a positive catalyst, the industry will remain in the same state. Meanwhile, CSX is seeking accommodations, should further trouble beset the automakers. While this is prudent planning, it's not a sign of confidence in the near-term. (These diverse asset classes provide downside protection and upside potential, see Commodities: The Portfolio Hedge.)
Last Stop
Some observers have dire forecasts for the rails - specifically CSX - predicting the potential of a long-term negative trend, while others see the rails as still solid companies, which will weather this downturn just fine. Norfolk Southern seems to be the best, while CSX's exposure to poor economic conditions has been a struggle. Investors shouldn't just jump on board before looking at a sustainable rebound.
By Greg Sushinsky
Greg Sushinsky is a passionate independent investor, who has done his own research, analysis and investing for 20 years. One of his earliest investing memories was when he first saved and bought U.S. Savings Bonds with his own money as a small child. From there, he studied investing on his own and made small stock purchases as he grew as an investor.
Sushinsky still follows the markets, studies and reads widely in financial literature, and has written over 75 articles on investing. He is also a professional editor, whose work is published extensively in large-circulation magazines, digests and across the internet. In other pursuits, Sushinsky writes fiction and has a university degree in philosophy. To see more of Sushinky's literary work, see http://writing.gregsushinsky.com/.
At the time of writing, Greg Sushinsky did not own shares in any of the companies mentioned in this article.
5 Dynamic Dividend Stocks
By Matt Koppenheffer
December 12, 2008
http://www.fool.com/investing/dividends-income/2008/12/12/5-dynamic-dividend-stocks.aspx
Will-Railway-Prices-Stay-On-Track?
November 08, 2008
#msg-33429883
[credit to futrcash]
Railroads sink after House rejects bailout
Monday September 29, 3:11 pm ET
Railroads plunge after House rejects $700 billion emergency rescue plan
http://biz.yahoo.com/ap/080929/railroads_sector_snap.html?.v=1
NEW YORK (AP) -- Shares of railroads lost more ground Monday after the House of Representatives rejected a $700 billion emergency rescue plan.
The Dow Jones industrial average fell as much as 705 points after the announcement. The vote was expected to be close, but widely expected to pass.
Railroad stocks have been falling recently as investors react to sluggish volumes and infrastructure damage from hurricanes along the Gulf Coast.
In afternoon trading, Union Pacific Corp. fell $4.29, or 5.9 percent, to $68.98 and Burlington Northern Santa Fe Corp. lost $6.78, or 6.9 percent, to $91.56.
CSX Corp. fell $2.08, or 3.7 percent, to $54.31.
Ahead of the Bell: Analyst touts Canadian National
Tuesday September 23, 8:30 am ET
Analyst adds Canadian National recommended stock list, expects fuel boost for rail group
http://biz.yahoo.com/ap/080923/railroads_ahead_of_the_bell.html?.v=1
NEW YORK (AP) -- A Goldman Sachs analyst on Tuesday added Canadian National Railway Co. to a list of recommended stocks, noting the railroad has the best volume growth among the largest North American rails and called it the "best executor" among its competitors.
Analyst David Feinberg placed Canadian National on the America's Buy list and raised his earnings predictions for the company, suggesting the rail will continue to benefit from carload strength and the strengthening U.S. dollar.
But Feinberg said his favorite stock among large North American, or Class 1, railroads, is Kansas City Southern, because of "above average volume growth" and strong Mexican operations. He rates the rail a "Conviction Buy."
He also reiterated his "Buy" rating on Union Pacific Corp. citing the company's increased third-quarter earnings projection and strong pricing.
Across the group, Feinberg said that third quarter earnings will be boosted by lower fuel prices. The group is especially benefiting because of the two-month delay in their fuel surcharges.
US government to announce $102m forest fire settlement with railroad
* McClatchy newspapers
* guardian.co.uk,
* Tuesday July 22, 2008
* Article history
In a landmark case, the federal government will announce a $102m settlement today with the Union Pacific Railroad Co over a forest fire that devastated a massive national forest area near the Feather River Canyon in California eight years ago.
It is the largest settlement ever in a lawsuit over the origin of a forest fire case, thanks in no small part to a groundbreaking order by a federal judge. The judge ruled UP must pay for the loss of public scenery and recreation and habitat and wildlife, rather than merely the costs of the lost timber and fire-fighting resources used to douse the blaze.
Federal officials would not discuss details of the settlement, which is to be announced today in Sacramento. But US attorney McGregor Scott said it is the largest civil settlement ever in the eastern district of California, which is based in Sacramento and extends from the Oregon border to the Tehachapi Mountains.
"I consider this to be the most significant civil case in the history of the district," Scott said.
The largest previous settlement in a wildfire origin case was $14m, and until today the biggest civil settlement in the district was $54m paid by Tenant Healthcare in its role as owner of the Redding Medical Centre.
Today's settlement stems from the Storrie fire, which broke out August 17, 2000, while a UP section crew was repairing track in the Plumas National Forest.
The fire burned for three weeks and eventually required 2,600 fire fighters to extinguish it.
More than 52,000 acres were burned in the Plumas and Lassen National Forests - an area larger than San Francisco.
The fire burned so fiercely that vast stretches of the landscape have yet to begin recovering, and the settlement agreement calls for most of the money - $80m - to go directly to foresters in the Plumas and Lassen forests to pay for rehabilitation of the area.
Federal officials also are expected to announce that the success in settling this case convinced authorities in Washington, DC, to create three new "fire litigation teams" to pursue such cases throughout the West.
One will be based in Sacramento because the Eastern District includes 16m acres of national forest system land, 8.3% of the country's total. The others will be in Los Angeles and Utah.
The federal government sued UP over the fire in 2006, claiming $200m in damages had been done by the blaze.
Union Pacific is the largest railroad in North America, operating in the western two-thirds of the United States. Its 2007 operating income was $3.4bn and its net income was $1.86bn.
The government's lawsuit over the fire's origin turned into a rout, and one of the reasons was the wildly divergent stories the five section crew members told in sworn pre-trial testimony about how they put the fire out.
They were repairing track in a rugged area of the Feather River Canyon just north of Storrie, a Plumas County hamlet that is one of eight places in the nation with a population of 5. The repair work involved using a high-speed rail saw to cut the track, and then using a grinder to smooth the cut. The saw shoots out sparks - small, hot pieces of rail and saw blade - and tests show the sparks can travel as far as 39 feet.
While the cut was in progress, sparks started a fire in a bed of dry leaves. Two of the crewmembers testified they dumped water on it; two others testified they didn't dump water on it. Two of them testified they stomped on it; the three others testified they didn't stomp on it.
One testified they patted it with their hands; another said they did not pat it with their hands; yet another said they spread it around with their hands.
A train went through the area about 15 minutes after the crew departed, fanning the smouldering ash and embers.
"If the results were not so tragic, UP crew members' varying descriptions of their attempts to put out the fire would be somewhat comical," assistant US attorney Kendall Newman, the government's lead lawyer in the case, observed in court papers.
At the end of January, the railroad conceded its liability and the reasonableness of the government's suppression tactics.
US district judge Frank C Damrell Jr ruled that "this court must consider, as many courts have, the unique character of the land at issue".
Over the railroad's objections, the judge found the government could seek damages for injuries other than to timber, including harm to the soil; destruction of trees too young for harvest; and destruction of wildlife, habitat, and the area's grandeur, as well as denial of its use for recreation.
He also ruled the government could seek its reforestation costs, noting "much of the devastated areas involved old growth forests, designated wilderness and trees that were hundreds of years old."
Government experts estimate the Storrie Fire burned more than 1,600 acres of spotted owl habitat, 12,000 acres of carnivore habitat, 9,000 acres of old growth forests - affecting bald eagles, goshawks and pine martens - and impacted amphibians and fish with silt run-offs into streams.
UP spokeswoman Zoe Richmond said yesterday, "We believe that when this fire occurred, our employees took reasonable precautions to put it out. Unfortunately, we had a situation that was pretty much extraordinary and unanticipated, and that caused the fire to flare up again."
Sector Snap: Railroads hit highs after upgrade
Monday May 19, 2:20 pm ET
Railroads hit all-time highs after analyst lifts largest rail to 'Buy,' citing growth plan
http://biz.yahoo.com/ap/080519/railroads_sector_snap.html?.v=2
NEW YORK (AP) -- Railroad stocks jumped to new all-time highs Monday, after a Stifel Nicolaus analyst upgraded Union Pacific Corp. to "Buy" from "Hold," suggesting a new management plan should boost shares over the next several years.
Analyst John G. Larkin said Union Pacific management's aggressive growth plan, combined with a defensive strategy against a weak economy and soaring fuel costs, could drive shares more than 20 percent in the next three to three and a half years. Union Pacific is North America's largest railroad by revenue.
"(Chief Executive) Jim Young's comprehensive 'blocking and tackling' approach seems to be gaining steady traction across the entire company and across all the functional railroad disciplines," Larkin said in a note to clients.
Larkin said the Omaha, Neb.-based company has a significant opportunity to grow earnings through productivity improvement. He also noted the company will likely aim to spend its money wisely in its strongest franchise markets.
He issued a 12-month price target of $182, and raised his estimates for 2008, 2009 and 2010.
Longbow Research analyst Lee Klaskow also raised his 2008 and 2009 estimates for Union Pacific, citing "the continued strong pricing environment and management's renewed focus on its bottom line."
In afternoon trading, Union Pacific jumped $5.28, or 3.5 percent, to $158.28. The stock hit an all-time high of $159.65 earlier.
Burlington Northern Santa Fe Corp. added $2.87, or 2.6 percent, to $111.43. Shares reached an all-time high of $112.40 earlier.
CSX Corp. gained $2.78, or 4.2 percent, to $68.32. The stock reached an all-time high of $68.87 earlier.
Norfolk Southern Railway Co. rose $2.07, or 3.2 percent, to $66.38, after hitting a new all-time high of $66.74 earlier.
Kansas City Southern lifted $1.99, or 4.2 percent, to $48.99, after reaching a new all-time high of $49.13 earlier.
Canadian National Railway Co. gained $1.29, or 2.3 percent, to $58.16, after hitting an all-time high of $58.50.
Canadian Pacific Railway Ltd. rose $2.75, or 3.8 percent, to $76. Its all-time high is $90.15.
Opening Glance: Rails hit highs, shippers slip
Friday May 16, 10:18 am ET
Shares of rails hit highs on traffic report, shippers lose ground as oil leaps, tops $127
http://tinyurl.com/5m8w23
NEW YORK (AP) -- Shares of railroads hit highs in early trading Friday, as investors reacted to a trade group report that said freight traffic rose last week. Shippers lost ground, though, as oil prices soared more than $3 to top $127 a barrel for the first time.
Here's how major players performed early Friday:
Union Pacific Corp., up $2.38 to $154.43. The stock hit an all-time high of $156.15 earlier.
Burlington Northern Santa Fe Corp., up 44 cents to $108.37. Shares reached an all-time high of $109.43 earlier.
CSX Corp., up 11 cents to $65.76. The stock reached an all-time high of $66.50 earlier.
FedEx Corp., down 69 cents to $90.17.
United Parcel Service Inc., down 96 cents to $70.40.
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