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Opinions Stuart Hinshelwood
CSX CorpCSXTOP PICKJul 12, 2013
$24.36
Stock price when the opinion was issued
$45.47
As of Jun 18, 2026. Market Open.
Transportation
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This is an east coast railroad, and east coast ports will get more business (west coast ports are dysfunctional). They are minting money with coal shipping; Europe has de-nuclearized, so it needs other sources of energy. A long-term investment. Is down 16% this year, but has a lot of upside.
Transportation
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The rails are an interesting space because they are very much affected by the trade dispute with China. It has suffered a bit but then been brought back into a more reasonable valuation range. Revenues will probably drop one percent this year. He does not think it can keep going up. Let the trade issue resolve itself before stepping in.
Transportation
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They are continuing the plan that Hunter Harrison put in place to improve efficiency, drive down the operating ratio, and sell assets. Velocity is up 20% this year: trains are moving faster, which provides better service and increases capacity. CSX is improving its capital profile, with higher cash flow margins. He expects every dollar of revenue to convert to about 30 cents in the future from a historical level of 8 cents. There have been complaints from the customer (shipper) base as a result of all the cost cutting but if CSX keeps improving its operating metrics, the customers’ concerns will be resolved. (Analysts’ price target is 62.92$)
Geoff ScottOwned
Transportation
Good strong class 1 east coast railroad. One of the only big rails that you can buy at a decent valuation. Good balance sheet. Rail volumes are starting to improve. If you believe in the US housing recovery, although at a slower pace as he does, and if you believe the economy in the US is going to continue to get better, this will participate very nicely in that. Ships chemicals, housing products, furniture, autos as well as coal and grains. Coal is baked into the stock price and grain shipments are down about 11%. They are doing everything they can to offset these 2 things. The other opportunity for them is crude on rail, which is going to be a multiyear story.