There is also some good blank verse -
Buy on bad news, sell on good.
You have got it backwards, you should be buying..
lauriontj - I am using Active Trader Pro. When I look at the open lots it shows a share price 34.10, when I look at the activity log it shows 32.3922, while both same number of. shares. Fidelity told me today that the difference is the taxable incentive income that was received for reinvesting the shares. The 34.10 is the basis for capital gains.
Even after they cut back production, it takes a while to cut back operating costs and reduce payroll. It is not instantaneous.
enronergizer - buried deep in this message string you bring up the cost of buying a single building in Jacksonville. One thing that I have learned is that the cost of living and taxes in Florida are so advantageous that this is something that I look for in a company. In fact, I recently recommended that a friend move his manufacturing plant from Philadelphia to Florida.
This is a bone of contention with one of my other railroad holdings who have their office in Connecticut where the cost of living is triple what it is in Jacksonville. Compare the EBITDA margin of other companies to include the SG&A costs, which are primarily embedded in the cost of running the main office. When I did the original comparison CSX bested the EBITDA margin of NS because Norfolk was marginally better than Jacksonville, now they are about dead even. Look at the tool a SWZdotSALARYdotCOM to compare costs of living.
Why is Florida a good place for a company headquarters? I ascribe part of it to its former governor, Jeb Bush.
The bad news:
Coal fired power plants have been torn down, eliminating the need for train crews
Emerys mines limestone and ships in around the country; one quarry can ship by CSX or NS. CSX raised the rate at the beginning of the year while NS did not. Now they are using more NS trains and less CSX .
Manufacturing plants in the Rust Belt along CSX are closing.
The good news
Manufacturing plants in the Bible Belt along CSX are opening
Housing starts are up,Georgia Pacific is shipping more strand board and plywood.
CSX needed to make their operation more efficient so they cut back the number of General Merchandise freight trains. Good for investors, bad for train crews
Who of you served in the military? How often did you move?
In my career I have have moved 7 times. Sorry, but this is the new way of life - get used to it.
Ther parts coming in will probably arrive by container truck via Charleston, but if Volvo is like Mercedes Benz, VW,etc. some of the components will be made here and shipped to other countries, meaning demand for coil steel, and castings will go up leading to the movement of raw materials.
I checked this morning on the price of the new shares - it was $34.10 . The closing price on Wed was $33.57 - I lost money
I called about my Fidelity account this morning (Wed) - the transaction was posted as a dividend pending reinvestment on Friday. The word is that the revised transaction is on hand and should be posted tonight, definetly by Friday. The share price will be $32 + change - I can not remember the exact change.
I have had some real problems when I call the IRS because I get such contradicting answers. What I ended up doing was writing them and keeping a copy of the letter that I received so that I had documentation. The problem I had was I was sent a letter that I owed over $10,000 in back taxes I sent letter explaining why I did not owe taxes and a letter came back saying that I did not owe the money. I am keeping that response for 20 years.
Listening to the stupid questions that the analysts ask on the CC, I can see how the dummies can be off. On the other hand, EOG is making too time talking about well spacing; it shows that they are studying the matter but flow rate is not as relevant as total amount that will be extracted over time.
The VWs are probably coming and going through Brunswick, GA using RoRo (roll on/roll of) ships. If you think that this business is insignificant. Use Google Maps and zoom in on the area just south of the bay. There are thousands of vehicles of vehicles. These are not all VWs, but it is going to have to hurt this seaport.
JAXPORT begins service as Volkswagen’s Southeastern U.S. distribution hub
By: AJOT | Apr 30 2015 at 08:33 AM | Ports & Terminals JAXPORT began service as Volkswagen’s Southeastern U.S. distribution hub today as nearly 1,000 new VW Jettas, Beetles and Golfs rolled off the auto ship Chesapeake Highway. The cars, which were produced at VW’s Puebla, Mexico factory, will be processed by AMPORTS before being transported to dealerships around the region.A second vessel is scheduled for tomorrow, which originated from Europe and is carrying 748 vehicles, including Volkswagen, Audi and Bentley models.Gov. Scott was on hand at AMPORTS in February toannounce VW’s selection of Jacksonville as its distribution center in this region. In making its selection, the company cited JAXPORT’s experience and reputation in the auto business as well as the port’s connections and proximity to consumers in the region.JAXPORT ranks as one of the nation’s top vehicle handling ports and the No. 1 vehicle export port in the U.S.
This is a lot of new business for CSX's Automotive Department.
I have it as a buy, but I would put in a buy at a lower price. It is a value stock, meaning that there is a lesser risk and a lesser reward, than UNP which is more of a growth stock. Expect that CSX will increase its carloads before the economy improves and shipments decline before a slowdown. Have you read "The Intelligent Investor" by Benjamin Graham? There is a lot of insights in that book. .