Eastern Railroad Discussion > CSX: Time to sell the stock?

An investment analyst makes the argument that CSX share price has seen its high point, and it's all down hill from here.  So, he advises share owners to sell Their shares now. EHH and his heirs have pushed down costs, squeezed the system, there's not much left.  Earnings are released on July 16

The argument is what's called a "bear" position. The stock is over valued now, take your profits, and head to the side lines. The Good Money has been made, the road is rough ahead.  The writer has a short position, so he's at risk here.  A short position involves borrowing stock from your broker, and selling it.  Your hope is the stock price goes down, so you can buy replacement stock at a lower price, settle the loan, and pocket the spread. The stock going up in price exposes you to potentially disastrous results.

THAT'S HIS POSITION, NOT NECESSARILY MINE.

https://seekingalpha.com/article/4273808-csx-corp-earnings-preview

I will hold mine. We are in the best bull market in history. I am also holding for long term. The dividends also pay. I’m not buying right now because this stock like most others are high but CSX has done very well for me including a 3:1 split a few years ago


Gary

Posted from iPhone

I am holding CSX and NSC.  In a nutshell, I think the numbers are going to get better and better.  PSR is going to save money.  Yard closures and bypasses are going to save money.  They are obviously running fewer and fewer trains but longer and longer ones with DPUs which is going to save money.

Manufacturing is going to move west from China to Malaysia, India, Vietnam, Indonesia and Thailand.  Container ship traffic is going to move through the Suez Canal and go to east coast ports instead of west coast ones.

I think the eastern Class Is are in great shape with good future revenue growth.  I took a gamble a while ago on KSC when they were cobbling together their NAFTA Railroad and did very well.  I kind of feel the same way about CSX and NSC.  They are on the cusp of a new paradigm. 

I did sell my UNP however last week. 



Edited 1 time(s). Last edit at 07/08/19 14:36 by FloridaTrainGuy.

Lackawanna484 Wrote:
> The writer
> has a short position, so he's at risk here.  A
> short position involves borrowing stock from your
> broker, and selling it.  Your hope is the stock
> price goes down, so you can buy replacement stock
> at a lower price, settle the loan, and pocket the
> spread. The stock going up in price exposes you to
> potentially disastrous results.
>

Sounds like he is trying to use his blog to manipulate the market.

Typhoon Wrote:
-------------------------------------------------------
> SNIP
> >
>
> Sounds like he is trying to use his blog to
> manipulate the market.

There's often a tug of war in the financial media between the "lomgs" and the "shorts". The one side talks their book, the other side tries to publicize weakness in the company or shares.

Sometimes the speakers are upfront about whether they own or are short, sometimes they aren't. Upcoming earnings often cause increased activity.

Posted from Android

Don't read seeking alpha....they are active short sellers and will do anything to dampen a stock price. Usually they get more shrill when there's reason for the price to rise.

I’m happy just depositing the dividend check each quarter.

Gordon

engineerinvirginia Wrote:
-------------------------------------------------------
> Don't read seeking alpha....they are active short
> sellers and will do anything to dampen a stock
> price. Usually they get more shrill when there's
> reason for the price to rise.

I dunno.

I enjoy reading short seller arguments, and trying to understand / refute them.  Many Wall Street brokerage houses had screaming BUY recommendations on ENRON until it collapsed. Same with Global Crossing, Theranos, etc. Wall Street makes money selling debt and shares for companies.  Even when a firm is a decomposing piece of trash, there are brokers which will pitch it to gullible buyers.

There's quite an interest right now in the earnings that CSX, NS, UP, KCS etc will report,  And even more in the guidance for the rest of the year, volume trends, etc.

Market Edge, a technical analyst firm, has a short call on CSX, and has a recommend to to take profits and close positions on UP and NS. Tech analysts watch the flow of money into and out of shares, buying pressure, trading patterns, and similar short term indicators as opportunities to sell or buy.

Yep brokers make money whether you buy or sell since they charge for the transaction.

Lackawanna484 Wrote:
-------------------------------------------------------
> engineerinvirginia Wrote:
> --------------------------------------------------
> -----
> > Don't read seeking alpha....they are active
> short
> > sellers and will do anything to dampen a stock
> > price. Usually they get more shrill when
> there's
> > reason for the price to rise.
>
> I dunno.
>
> I enjoy reading short seller arguments, and trying
> to understand / refute them.  Many Wall Street
> brokerage houses had screaming BUY recommendations
> on ENRON until it collapsed. Same with Global
> Crossing, Theranos, etc. Wall Street makes money
> selling debt and shares for companies.  Even when
> a firm is a decomposing piece of trash, there are
> brokers which will pitch it to gullible buyers.
>
> There's quite an interest right now in the
> earnings that CSX, NS, UP, KCS etc will report, 
> And even more in the guidance for the rest of the
> year, volume trends, etc.
>
> Market Edge, a technical analyst firm, has a short
> call on CSX, and has a recommend to to take
> profits and close positions on UP and NS. Tech
> analysts watch the flow of money into and out of
> shares, buying pressure, trading patterns, and
> similar short term indicators as opportunities to
> sell or buy.

nope nope nope trade by the seat of your pants! Buy low hold forever....and insider dope don't hurt......we are in a July lull that happens every year.....it will pick up.....soon. We won't add any jobs, we'll just work more....



Edited 1 time(s). Last edit at 07/08/19 18:24 by engineerinvirginia.

There’s two sides to every trade,a buyer and a seller. The buyer,obviously,thinks the price will rise,the seller,the opposite. Differing opinions,and vocalizing that opinion is not always someone trying to influence the market,it’s just talking your position. It’s up to the individual to take into account all the available information,even if its not what you believe or want to hear,and make your own decision.  The ones to be wary of are the ones trying to move the stock in a certain direction so they can do the opposite,either buy or sell it for themselves.  It’s called pump and dump. 

   Tom