Follow-up on above. Week ending 8/20 CSX total carloads down 89338. Intermodal down 5.6K for week
and 27.7K for Q3. NSC total carloads down 62K and Intermodal up this week 5183. Still holding out to
buy at better re-entry point. glta
At current p/e and stock price.... I see more downside risk than upside reward, based on following:
For years the US GDP is dropping, and global weakness, and strong dollar hurting rail business.
The one positive was the continuation of growth in Intermodal, helped CSX. Currently CSX for
Q3 is already down 9.8% on 65K carloads, and will worsen for the rest of this Q.
The final killer is a loss of 14K intermodal shipments already in this Q, with loss of 2 contracts to
NSC. NSC is positive on intermodal by picking up these additional carloads.
I currently am still holding several thousand shares, after selling around 75% of CSX, because I
think the market will start to realize CSX loss on intermodal, might not be priced into stock, and
a pullback will probably happen. I hate it but the truth must come forward. I 100% will buyback
around November. I think the earnings this Q could be a miss, if something great don't happen.
I always give my honest opinion. even if several disagree ...sorry. What is your outlook ?