Darren SissonsUnion Pacific CorpUNPWAITOct 05, 2023
Great acquisition of Kansas City by CP was a game changer. CNR is the gold standard in North America. US is not in a recession yet, but if it does happen, all the rails will get cheaper. Don't settle for just a 1% differential from the historical average, when you might be able to get it 20% cheaper.
Performs well during strong economic environment. Infrastructure spending in USA rising. Union negotiations rising costs for company. New CEO good for business. Overall is a strong business for the long term investor. Below $200/share a good place to buy.
Owns shares in company. Good exposure to US economy. NEW CEO good for business. Steady company that is safe investment. Current share price a good place to buy. Expecting new highs in share price in 2024/25.
Attractive industry with strong, defensive attributes. Wait. We're coming into a time when there's potential for the economy to weaken, with a big impact on the rails. His preference is CP.
Great industry to be in with consolidation and pricing power. Environmentally friendly. Rails predict the economy. Numbers were down, so UNP anticipates deceleration in economy. All rails will do really well when we come out of the slowdown. He owns CNR.
Also likes CSX and Northfolk Southern. At any given time, one is cheaper than the other. Can't decide, but you can't lose with the rails because they're all better now than before.
There's a strong secular tailwind for agriculture as well as capital expenditure to produce greater efficiency. She'd be looking at automation, like Rockwell and Honeywell. Then, how do you move those goods? Look at Union Pacific. There are various ways to play the industrial sector as you move into 2023. She expects capex in private and public levels to pick up in 2023 in the U.S. but also globally even with a (shallow) recession. This is a long-term trend. You can also play this the ETF, GUNR,
A transport, which does well during stronger economic times. Setting up for the future, not a bad buy here. He'd prefer to get it in the $180-190s. Shutdown in China has hurt, but this won't last. Globalization is waning, as the risks have become apparent. Will benefit from repatriation of business.
The strike will be resolved, but a strike is the last thing our fragile economy needs. You need the rails to transport all these materials. Remains a long-term hold.
Q2 this year heard drumbeats of a recession, but that has since faded. This explains why transports didn't so do well earlier this year. Now, there are lesser fears of a recession. He expects a growth slowdown instead that will lead to expansion in 2023. So, he would own this stock as that activity expand.
The street expects strong numbers, because in a weak environment, the rails usually outperform. They are the lowest cost provider. Trades at a cheap 18x at Covid levels.
Was downgraded today. UNP has trouble hiring enough staff and meeting demand. They will figure this out and hire enough specialized staff. Total traffic demand growth in 2021 fell short of their 5% target. Rail shipping margins continue to improve with precision schedule. This is a great place to play in industrials.
Great acquisition of Kansas City by CP was a game changer. CNR is the gold standard in North America. US is not in a recession yet, but if it does happen, all the rails will get cheaper. Don't settle for just a 1% differential from the historical average, when you might be able to get it 20% cheaper.