Eastern Railroad Discussion > CSX up $8.63

$45.51 a share where do we go from here???

Posted from iPhone

If you are turning to Trainorders.com for financial advice...you just may want to rethink your investment strategy!  LOL

Take a ride on the Reading Railroad, pass Pennsylvania and collect $100.

Shareholders are more than happy---enthusiastic---about a real railroader rescuing CSX from its present amateur-hour management.

That's suppose to be----collect $200 dollars.    :)

Brian

I bet the folks that work for CSX don't all share that same enthusiasm.

bought this am at 43.31   legged out through the day in the 44 handle   nice day for foolin around    actually just offset my nightmare in citibank   who says being a railfan doesnt pay off

irhoghead Wrote:
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> I bet the folks that work for CSX don't all share
> that same enthusiasm.

Exactly.....

I'm not usually a skeptic, but the writing is on the wall.....
 

Nobody really believes CSX is well managed. Certainly not Wall Street.

The question is whether EHH is the answer.

Posted from Android

You have to ask yourself is he jumping company to company for fun.
​Heck no! He guts a company, destroys morale, run the physical plant into the ground, peeves off customers, fights with regulators and then takes off!

God help those at CSX!

Mike Bannon
St Catharines, ON

pal77 Wrote:
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> bought this am at 43.31   legged out through the
> day in the 44 handle   nice day for foolin
> around    actually just offset my nightmare in
> citibank   who says being a railfan doesnt pay
> off

I SOLD this afternoon :). Being a railfan DOES pay, I bought at $21 a few years ago. 
No taxes to worry about for a few years, it's in my IRA.
 

  Three class 1's in 8 years. Just another corporate raider.

That's before the new tax scam.

Author: 4400horsepower"That's suppose to be----collect $200 dollars.    :) "
Brian

CSX is running a bit better than after Conrail takeover. I'd say abount equal with NS, and even tho I have a fair amount of stocks in both , I do not see how any of EHH's past practices on other railroads will make CSX any better, for customers or investors. CN and CP were easy to pic on from his management philosophy. Few routes with heavy traffic, branchlines, passenger conflicts, etc. Both CSX and NS have a much more difficult route structure and bigger customer base. From what I've heard neither CN or CP customers feel they are better off after EHH took over. Especially carload customers. How can EHH make CSX better? As a shipper, employee, investor, you have to ask yourself that question.

Lackawanna484 Wrote:
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> Nobody really believes CSX is well managed.
> Certainly not Wall Street.

Really?  CSX has a slightly higher market capitaliztion and P/E ratio than NS.  And go check their operating ratios--they're quite similar.  So are you prepared to say the same thing about NS, and for that matter most of the Class 1s?   



Edited 1 time(s). Last edit at 01/19/17 21:03 by calumet.

Lost in all this blather is that CP stock rose big time as well.  Get it?  Wall St expects an eventual merger of CSX and CP assuming Hilal and Harrison gain control of CSX.

Harrison still wants a transcon railroad.

Not if Union Pacific has anything to say about it.

EmpireBuilder Wrote:
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> Not if Union Pacific has anything to say about it.

It would be interesting to speculate about what terms Union Pacific would demand from CSX to consent on a merger.  Which lines, for example, could they take without triggering anti-trust problems.

There's a large amount (compared to recent history) of options activity in the stock. As used here, options refers to the right to buy shares (in a call) at a specified price, for a specified time.

I owned a small position in CSX, so the recent bump was a nice January surprise.  That allowed me to write contracts where I agreed to sell 400 shares of CSX for $45 any time in the next four weeks. In return, I received $2.50 x 400 shares right now.  So, I can make a maximum of $47.50 (the agreed on $45 plus the $2.50) x 400 shares.  Commissions are excluded in this example  on the IRA account holding..

If nothing happens by late February , and the stock isn't called away from me at $45, I keep the $2.50. If the stock is called away, I get the $45, and keep the $2.50. If the stock goes to $70, for example, I'm capped at $47.50 on this position. I also own some CSX stock not optioned right now.

I also wrote a few contracts, offering to buy stock in CSX from others at $40 per share between now and late February. Not a big hearted deal when the stock is $44. That gives me another buck and a half. The price has since dropped to about fifty cents, so I'm tempted to sell my puts, and pocket the dollar spread. The buyer of that trade might be concerned his good fortune could collapse and he wants a floor under his stock price.

In a perfect world, the stock would stay between $40.01 and 44.99, so I would keep my stock, and the $2.50 and the $1.50.  And repeat the process in March, April, etc.

(I simplified some items for clarity, and ignored commissions. The trade is in an IRA which has plenty of cash, and the CSX.  In a taxable account, you'd have a pile of short term taxable income.)