Eastern Railroad Discussion > Barron's "Rail Stocks Could Struggle as Challenges Mount"

https://www.barrons.com/articles/railroad-stocks-could-struggle-as-challenges-mount-51568419201?mod=hp_DAY_14

Most of the article is behind the pay wall.

I happened to be in the public library today and saw it on the rack.  The railroad article was the cover story.
I don't know anything about the competency of the writers for this publication.  Looking at the first sentence of the
article shows they leave something to be desired.  CSXT is much more than a renamed B&O.  But as we all should
know the Wall Street people could car less about the history or heritage of anything.  It is all about money.  I also had
to laugh when I read that the PSR railroads were getting away from the "Hub and Spoke system" by making more direct
moves.  Like a car from Chicago to New Orleans would go through Albany or Elkhart.

The big take away I got was that the railroads have squeezed all the "efficiency" they can out of system.  There are only so
many employees to fire, locomotives to store and tracks to rip out.  All those things were gold to the Wall St. types but no
more blood can be squeezed out of those stones.  Plus traffic is beginning to fall off.  Also mentioned is the fact that not
all the improvement in the bottom line came from "efficiency"  A lot of it came from rate hikes.  

So the investment world is now seeing that EHH and his students have sold the emperor's clothes and now he has none.
Let the investor exodus begin while they search for another industry to pick clean and dump.



Edited 1 time(s). Last edit at 09/16/19 15:50 by Englewood.

Still on the 1st page.  

https://www.trainorders.com/discussion/read.php?2,4866194

Sorry about that.  I looked to see if anyone had mentioned it but did not see it.
Maybe I need new glasses.
Apologize for any bytes killed or injured in the double post.

  I also had
> to laugh when I read that the PSR railroads were
> getting away from the "Hub and Spoke system" by
> making more direct
> moves.  Like a car from Chicago to New Orleans
> would go through Albany or Elkhart.

Actually, wouldn't a car from CHI-NO on NS go to Elkhart first, then to Cincy and down the Rathole to get to New Orleans, or is there another way? JG

jgilmore Wrote:
-------------------------------------------------------

>
> Actually, wouldn't a car from CHI-NO on NS go to
> Elkhart first, then to Cincy and down the Rathole
> to get to New Orleans, or is there another way? JG

Ex NKP to Fort Wayne, then Muncie, Cincy.  Like the intermodals.