I wrote a system for feeding chickens corn and soy from hatching until they were ready for market You better believe that we hedged our corn and soy futures on that system. Of course we did not hedge 100%, but I sanded some of the rough edges off of price swings. The airlines do the same thing with fuel.
When we were able to hedge our futures on whole birds, we did that, too.
All right , the customer has to bear the burden for an increase in fuel costs. But from what I see, the operation is not smooth.
Why would I care? If the dividend remains I would not. You need to read a biography on Warren Buffett and his remarks at the Berkshire-Hathaway annual meets.
When you know that fuel is at a low, CSX should be a) buying oil futures b) Like Delta Airlines, buy a refinery. Share buybacks are foolish, it just makes the shareholders feel better, so they will approve the board of directors . Reducing fixed costs by calling bonds is the wise thing to do, it reduces fixed costs for years to come.
You must have lived your life in the south. Oil is still used for heating in New England. There is nothing like walking the length a train of 100 50 foot tank cars to couple cars together in sub zero weather to make you want to move south. I did it until I could get an indoor job.
I suggest that you get a subscription to the Wall Street Journal so that you know what is going on in the world.
What is driving oil and natural gas down is supply, supply, supply. What would even make you think that short sellers had anything to do with it? Blame Saudi Arabia, if you want a name.
CSX has a Facebook page that can be quite interesting. There is a Facebook page called "CSX Atlanta Area" which covers significantly larger area. There are some excellent railroad photographers on this page, like Frank Crowe and David Stewart.
The Georgia sub is being downgraded to 25 MPH and local only service.
. This is the original Georgia Railroad, and was carrying through container and coal trains. .
Lower fuel costs also lowers the cost of trucking and shipping by barge. (I forgot how years ago I saw a lot of movement of Kentucky coal by barge from near Lexington, KY to New Orleans) This export coal may still be a viable operation. With good currents on the Kentucky, Ohio and Mississippi rivers, it was also fast than rail. Ditto for corn exports.
There are some people out here that are personal friends that know that I am back taking classes in Metro Atlanta Seminary. No, I am not going to buy a church. : }
The flip side of this is who is selling the stock so that the institutions can buy the stock? Sounds like the big boys think the stock is worth more in the long run than the current share price.
Get rid of the excess employees that were hired because of the subsidies and it will become profitable again.
Dr D. & Grumpy - I am not going to post out the end of this string, because it is getting too long. Before I started investing, I studied accounting, introductory and intermediate, so I could read the statements I read "The Intelligent Investor" and "Security Analysis" by Benjamin Graham.Then I can analyze a 10K statement, not rely on the annual report, which leaves out much information. I studied a Transportation Economics textbook. THEN I studied which railroad to buy. I also studied a Petroleum Engineering textbook, now I can find the best oil investments to buy.. It may take a couple of months to go through each step but it is worth it.
If you have not noticed, the first oil shipments are coming out of Houston. And it is West Texas Intermediate, which contains longer chain hydrocarbons, but not the truly heavier chains, which comes from the tar sands of Alberta and Venezuela.. . Also, they beat Enterprise to be the first to ship.
You folks don't get it, do you?
One member of the STB has already said that there is no way this will go through and there are only three members on the board. The CN will bring the matter to the Canadian court crying monopoly, CSX will bring the matter to the American court, or the FTC. FRA and several manufacturers crying restraint of free trade and monopoly.