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Norfolk Southern Corporation Message Board

  • save_n_investte save_n_investte Jul 23, 2013 4:26 PM Flag

    NSC's Quarterly Report/Earnings Disappoint

    PPS is down over $1 a share in post market trading. The market did not like what they saw, all figures were down substantially from a year ago:

    the second quarter of 2013, Norfolk Southern (NSC) reported net income of $465 million, 11 percent lower than $524 million for second-quarter 2012. Diluted earnings per share were $1.46, down 9 percent compared with $1.60 per diluted share in the same period last year.

    The only bright point is that NSC is increasing it's dividend from $2 a share to $2.08 per annum, a 4% increase. Overall, NSC's results were very disappointing.

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    • Nothing that goes to the personal hurt of "disappointing" just some figures that aren't so good. The thing that concerns me is what seems to be a gradual loss of pricing power

    • As I noted in past posts, the law of diminishing returns is in full swing for this outfit.

      Increasing debt every qtr.

      Issuance of millions of dollars worth of stock every qtr.

      Over 7 billion spent since 2006 and the stock since then has not broken above the 77 range and held,

      Fooling around with carbon credits instead of growing the business,

      Coal car loadings consistently very weak,

      One other twist many forget, Pocahontas Land Development coal mine leasing has to be taking a major hit, with future rates of return for leases diminishing quickly.

      Another obscure business, T-Cube, who knows??

      Pointless non-meaningful dividend increase.

      Still being counter sued by PW – potential financial liability

      In sum, selling out my long-term position, still with a nice profit, may come back and trade it at later date………..when management turns over.

      Sentiment: Strong Sell

    • Coal revenue was $626 million, 17 percent lower compared with the same quarter last year.

    • Well, the good news is Dr. J was long as was an investor who bought 3,000 80's using Optionmonsters Heat Seeker. Personally, I love this stock as it seems to trade between $50 to $75/$80 like clockwork. I was getting a little worried when my 77.5 puts fell under $3 but chased it to $2.75 yesterday, was even overall when it fell at the end(institutions seemed to have gotten wind as volume increased significantly). I figure I can ride them to the low $70's at least which is a 150-200% gain using the CBOE options calculator. From a fundamental standpoint you can't go wrong with a solid dividend and 20-30yr investment horizon.

      Sentiment: Strong Sell

 
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