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.
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.