Eye On Transports

Last post 07-02-2009 3:17 PM by podstock. 5 replies.
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  • 06-13-2009 8:59 AM

    Eye On Transports

    On Friday, investors were wondering how to play the transports after analysts at Morgan Stanley upgraded Burlington Northern  to equal-weight and said there is better growth opportunity in the rails than other areas of transportation.

    They also upgraded rival CSX  which they called the cheapest rail stock of the group.

    Is it too early to play transports for a recovery?

    Railcar load-ins are down 20%, bristles Jeff Macke. I think the whole space is a fly in the ointemnt for the bulls.

    From a valuation standpoint, I’d be careful with the rails, counsels Joe Terranova. They could be ahead of themselves.

    Of the two, I’d rather be long CSX than BNI, adds Guy Adami, but it seems to me both are working.

    I’d put both BNI and CSX on your radar, says Pete Najarian, but I don’t think you have to jump in today.

    You may also be interested to know that on Fast Money’s Halftime Report technical analyst Katie Stockton of MKM said patterns in the chart of the iShares Dow Jones Transport. Avg. ETF appear bullish.

    Specifically, she’s spotted the tell-tale inverse head and shoulders pattern and said this ETF could outperform on a pullback in crude.

    And she says the railroads look best in the transportation sector.

  • 06-13-2009 6:06 PM In reply to

    Re: Eye On Transports

    I've been buying CSX in real$ since Warren Buffett jumped in to BNI. I agree with Guy Adami. and both he and Pete Najarian said back when Buffett bought BNI that CSX was the better play.As a Long term investor I consider it a good play.As this is my personal opinion and not a recommendation. For WSS these plays would have steady growth but maybe not enough to blast up your rankings in a week. some trucking stocks are rangebound and have been so for a long time. airlines and trucking are extremely affected by fuel costs so when oil goes up they make less.

  • 06-14-2009 9:46 AM In reply to

    Re: Eye On Transports

    the only way to get more profit is to buy in dip, but when will the market downfall ?
  • 07-01-2009 12:11 AM In reply to

    Re: Eye On Transports

     I am hoping the answer to your question regarding the market downfall is this week, specifically Wed-Thursday,once employment report comes out.

    The weekly on the Dow looks like it's about to roll-over; but, the caveat is, I have a bearish predisposition, which one shouldn't have when daytrading.

    but, I think this "green shoots" manure is fairly old by now, and we will need to see real economic numbers, and more importantly better forward guidance as companies report in mid-July..... assuming they are lying/committing fraud

  • 07-02-2009 2:08 PM In reply to

    Re: Eye On Transports

    Working as a trucker Been hearing buzz on the road that there are a few companies trying to cut their own throats to stay in business.they have dropped their pay and benefits for drivers.I dont find the removal of benefits as unusual in these financial times. these companies on time deliveries are hurting as they are now hunting for drivers to meet schedules. and they are starting to get a bad reputation among drivers that pay is delayed or the nickel and dime charges the driver has to pay. overall I see that generally freight is steady with weakness only in specialized.Hopefully within the next year the weaker companies finally disappear .
  • 07-02-2009 3:17 PM In reply to

    Re: Eye On Transports

     well, the Jobs report came out, and as I stated before, I believe these "green shoots" are nice phrases, but that's about it.

    As for the rails, I believe I read an article by Mishedlo in which he talked about large decreases in rail businesses.

    As for BNI, I think that Buffett got into this stock in the 80s+

    And, the Transport sector did not confirm the recent Dow highs, making this a negative divergence, I think.

    I am looking for a 50% retrace and then dipping long

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