they have some "other" long term liabilities, but adding up everything they have less than 24 billion in debt at they do 5-6 billion in EBITDA the leverage on the "actual debt" is less than 2x. give me a break. Rails will not trade at the multiples they did the last few years. even with that being said. UNP should trade in the 50's
UNP is down because RR's are very efficient transporters, on steel rails, & because trains are long and skinny with not much frontal air resistance. They have a low specific fuel consumption (ie gals. per ton mile). When price of fuel goes down then truckers get more of the hauling business because they have the advantage of being quicker and able to serve more places. It's all fuel related... Brooks Doege
I subscribe to a live news feed called theflyonthewall.com that reports instantly any news on companies. It is a great service for $25 a month. That is where I got news of the JP Morgan upgrade.