TheStockAdvisors.comTheStockAdvisors.comThe Top Stock Picks from The Nations Top Stock Pickers Articles
'Stellar' stocks: China favorites
2009-09-15 06:00:00 "We see tremendous opportunities in China , which should rise regardless of US market gyrations," says Richard Schmidt. In Stellar Stock Alert he looks at a trio of ideas."China Mobile (NYSE: CHL) is one of our newest holdings. We bought the Chinese telecom company last month. Recent price action has turned the 200-day average positive. "In our view, we’re early in this up move and expect greater growth in the near future. CHL is a strong buy. "Netease.com (NASDAQ: NTES) is another one of our new holdings, purchased just one month ago. Between 2006 and 2009, the stock traded within a fairly wide trading range ($14-$26). That trading range provides significant support for future growth."And, earlier this year, the stock broke out of that trading range to the upside. It’s now continuing a very long-term uptrend that goes back to 2002. "In August, the stock ran up strong, then pulled back to the 50-day moving average. Th... More About: Stocks , Favorites
IMAX (IMAX): The big picture
2009-09-15 06:00:00 IMAX (NASDAQ: IMAX) is a featured stock from Jim Oberweis, Jr. The money manager and editor of The Oberweis Report explains why his clients own some 600,000 shares."IMAX specializes in motion picture technologies and large-format film presentations. IMAX designs and manufactures large-format digital and film-based theater systems."The company sells or leases such systems to its customers, and converts two-dimensional '2D' and three-dimensional '3D' Hollywood feature films for exhibition on such systems around the world."Its theater systems are based on proprietary and patented technology. There were 351 theaters in the IMAX network at the end of 2008, and the company estimates there will be approximately 440 at the end of this year."IMAX theater systems combine advanced, high-resolution projectors with film handling equipment and automated theater control systems, sound system components."The systems also utilizes screen c... More About: Picture , The Big Picture , IMAX , Big Picture
Drill into Schlumberger (SLB)
2009-09-14 06:00:00 "The oil-services sector remains my favorite long-term play in the energy industry," says sector specialist Elliott Gue. In The Energy Strategist, the advisor suggests, "The cycle for oil services stocks appears to be at or near its lows. This bodes well for the oil-services space and industry leader Schlumberger (NYSE: SLB)."Oil services firms will benefit directly from the increasing technical complexity of oilfield development."International business is the primary driver for Schlumberger, which generated only 22% of its revenues from North America in 2008. "The important question is, where do we sit in the cycle for international operations? In my view, the second half of 2010 will mark the beginning of a new uptrend. "This outlook suggests that oil-services stocks will experience a big run-up in the final months of 2009, well before margins actually bottom."I have the utmost respect for Schlumberger as a company ... More About: Drill
eBay (EBAY): Life after Skype
2009-09-14 06:00:00 "In a move that's long been expected, eBay (NASDAQ: EBAY) is selling Skype ," reports Paul Tracy. In Street Authority Market Advisor he adds, "With this tiresome distraction now out of the way, management can devote all of its attention and resources to reinvigorating its core auction business.""According to terms of the deal, the internet-based phone service will fall under the ownership of a private syndicate for about $1.9 billion."Former CEO Meg Whitman orchestrated the acquisition of Skype back in 2005 as a means of communication between buyers and sellers. And the service has attracted hordes of subscribers in a short period of time. "Still, promised synergies with eBay's core operations never materialized, and efforts to monetize the vast base of users have been largely ineffective. eBay took a $1.4 billion write-down on Skype in 2007 and acknowledged that it wasn't a good fit."But that's not to say the company ... More About: Life , Ebay
Rhodes: Technical talk & trades
2009-09-14 06:00:00 "Friday's 'triple witching expiration' of options and futures may hold more fireworks than normal," says technical trader Richard Rhodes. Here's his latest from The Rhodes Report."Technical ly speaking, we could very well see a downdraft into Friday predicated upon the fact that the S&P 500 big options open interest remains very high for the September 1000 puts and calls."This in effect, may cause weakness to develop given those with the 1000 calls have enormous profits; and may very well take their profits. Conversely, for everyone with an enormous profit, there is someone with just as large a loss, which may mean they may be forced to cover. "This is a game of 'chicken' to be sure. We believe that given the short-term overbought condition, then traders may be apt to protect their profits and we’ll see a correction."We face a 'range' of resistance is better than a 'point.' ... More About: Talk
Suntech (STP): Solar 'ChangeWave'
2009-09-11 06:00:00 Long-standing growth stock expert Toby Smith looks to Suntech Power (NYSE: STP) as a long-term investment in alternative energy. Here's the latest from his ChangeWave Investing."Suntech, like every other solar company, has been impacted by a lack of financing from the slow release of the Stimulus funds -- and its latest quarterly results reflect that."Prices for its solar panels fell 8% in Q2 and will likely drop another 15% to 20% in the current quarter. Still, Suntech's Q2 profit topped consensus by 3 cents on revenue that fell by one-third, to $321 million."In the quarter, STP's gross margin rose to18.6% in Q2, from 17.8% in Q1, as the price of silicon fell faster than the price of the manufactured cells."During its conference call, STP said there was a 53% increase in shipments for Q2 due to a seasonal pickup, improving project returns and some improvement in the credit markets."It also said that the tight credit markets are among the biggest... More About: Solar
Online security boost VeriSign (VRSN)
2009-09-11 06:00:00 Sy Harding, long-known as one of the advisory world's top market timers, has launched an excellent new service -- Street Smart Long & Short Stock Advisory.Here, we look at one of the new service's buys -- VeriSign (NASDAQ: VRSN). Says Harding, "Chances are if you make online purchases, VeriSign is involved, protecting the privacy and security of the transactions.""VeriSign operates in several important areas of Internet commerce and communication. Since November, 2007 the company has sold 11 non-core businesses and its share of joint ventures, taking in some $575 million, to focus its attention on its core businesses. "Among those core businesses, VeriSign is the leading provider of secure internet services for internet-based commercial transactions and communications."It has more than 100,000 customers processing over 30% of North American e-commerce transactions. The company recently reported it had hit a record of more than... More About: Security , Online , Boost
Medivation (MDVN) targets Alzheimer's
2009-09-11 06:00:00 Karim Rahemtulla looks to Medivation (NASDAQ: MDVN), a play on the development of a drug to treat Alzheimer's. Here's his latest in Xcelerated Profits Report."Medivation continues to make good clinical trial progress with its Dimebon drug for Alzheimer’s Disease."The firm received some mainstream media attention at the recent International Conference on Alzheimer’s Disease (ICAD) in Vienna. Reuters, Forbesand Bloomberg all reported that Dimebon is changing the way scientists think about Alzheimer’s."Data showed that in mice and cell cultures, Dimebon increased the presence of amyloid plaque – a protein that signals Alzheimer’s. Scientists aren’t sure whether the amyloid is a cause or symptom of Alzheimer’s, but they believe there is an important relationship between amyloid and the disease. "Sam E. Gandy, a professor at Mt. Sinai Medical Center, who led the amyloid Dimebon study, said the data presented ...
Salesforce.com (CRM): Profits in the clouds
2009-09-10 06:00:00 "Run properly, as Salesforce .com (NYSE: CRM) does, a cloud computing network also offers greater security, greater reliability, and lower costs (thanks to efficiencies of scale)," explains Timothy Lutts.In The Cabot Stock of the Month report, he suggests, "Salesforce.com is very well managed, and in our mind its leadership in cloud computing gives it a fundamental advantage that should translate into growing market share gains and steady revenue flows for years to come.""The company was founded a decade ago by a former Oracle executive, and today it’s a leading vendor of Customer Relationship Management (CRM) services. "But unlike Oracle, which sells software that users install on their own computers, Salesforce.com sells access to its own network, which is where all of its software applications are running. "This business model is called cloud computing, and it makes a lot of sense. With cloud computing, users simply pa... More About: Clouds , Profits
Paxair (PX): Clean coal?
2009-09-10 06:00:00 Andy Obermueller is the chief investment strategist of a fascinating new advisory newsletter, Government-Driven Investing.In his latest issue, the advisor looks at Praxair (NYSE: PX) as a play on the development of clean coal technology, more-technically known as carbon capture and sequestration. Here, he explains the opportunity."U.S. Energy Secretary Steven Chu recently announced an $8.4 million project to ensure that the nation's innovators are up to speed on the latest carbon-capture and sequestration technology."Chu said, 'These projects will train workers for a clean-energy economy and help position the United States as a leader in carbon capture and storage technologies for years to come.'"This isn't a huge grant, but it does show that the United States government is continuing its support of this crucial technology. "The so-called "cap-and-trade" bill seeks to limit carbon-dioxide emissions. But carbon c... More About: Clean , Coal
Elliott wave: 'Time to exit'
2009-09-10 06:00:00 "The stock market is poised to complete the bear market rally from March," says technical expert Steven Hochberg in The Elliott Wave Financial Forecast. Here's his bearish call."On April 2, we forecast a rally that would carry the Dow to 9,000-10,000 and the S&P 500 to 1000. These levels have now been met."We felt this price target would represent a respectable place to exit long positions. But we know from past experience that many will hold out for even higher prices."The most 'respectable' exit point is fast approaching, if not already at hand. Instead of angling for the exit ramp, however, investors are accelrating into the fast lane -- just in time for the big pile up."Besides achieving the price objectives originally forecast in April, the five-month push has generated optimistic extremes that exceed those that were recorded at the October 2007 all-time high."The worst seasonal month of the year historically -- Septe... More About: Time , Elliott wave
Elliott wave: 'Time to exit'
2009-09-10 06:00:00 "The stock market is poised to complete the bear market rally from March," says technical expert Steven Hochberg in The Elliott Wave Financial Forecast. Here's his bearish call."On April 2, we forecast a rally that would carry the Dow to 9,000-10,000 and the S&P 500 to 1000. These levels have now been met."We felt this price target would represent a respectable place to exit long positions. But we know from past experience that many will hold out for even higher prices."The most 'respectable' exit point is fast approaching, if not already at hand. Instead of angling for the exit ramp, however, investors are accelrating into the fast lane -- just in time for the big pile up."Besides achieving the price objectives originally forecast in April, the five-month push has generated optimistic extremes that exceed those that were recorded at the October 2007 all-time high."The worst seasonal month of the year historically -- Septe... More About: Time , Elliott wave
Chinese telecom stocks: A trio of wireless plays
2009-09-09 06:00:00 "There is still a lot of wireless growth potential in the world's most populated country," notes Geoffrey Seiler, in an intriguing and in-depth review of the leading China telecom companies.In BullMarket.com, he looks at China Mobile (NYSE: CHL), China Unicom (NYSE: CHU), and China Telecom (NYSE: CHA) noting, "We would expect all three to grow for the foreseeable future.""China Mobile is the undisputed king of mobile from a subscriber base standpoint. Through the end of June, the company boasted 493 million subscribers. The company boasts 70% of the Chinese market."The next two providers are China Unicom, which claimed 140 million users as of June 30th, but growth was just 800,000 from May, followed by China Telecom, with 39 million users."While still growing, the pace at which the industry is adding subscribers has slowed in the last year. In part it is because the major urban markets are getting saturated. "All three have ... More About: Wireless , Stocks , Plays
ETFs for water woes
2009-09-09 06:00:00 "While global climate change may be over-politicized, there’s no disputing that the issue is real," says Larry Edelson. In his Real Wealth, the advisor looks at two water sector ETF.""Food shortages and the lack of fresh drinking water are likely the most acute and immediate problems."For example, Northwestern India is running out of water, China is raising water prices to curb use and Mexico recently restricted the water supply amid a shortage."Domestically, unbridled use of groundwater in Arizona is a potential disaster. The problem is pipelines and canals don’t extend far enough to deliver water to everyone. And unrestrained drilling in outlying areas is draining the supply."One of the best ways to play the water scarcity angle of global climate change and population explosion is through the PowerShares Water Resources Portfolio (NYSE: PHO). "This fund tracks companies that are involved in the delivery and treatm...
CVS (CVS): 'Exceptional company'
2009-09-09 06:00:00 "CVS Caremark (NYSE: CVS), the nation’s largest U.S. drugstore chain, remains a buy in our model growth portfolio," says Stephen Leeb. Here's the latest from The Complete Investor."Business at CVS has been resilient. In the second quarter, revenue growth was up 22% for its pharmacy benefits management (PBM) business and 17% for retail operations. "Total sales, almost evenly divided between the two segments, rose 18% to $24.9 billion. Earnings of $886.5 million, or 60 cents a share, were 13% higher than in the year-earlier period and beat consensus estimates by a penny."Caremark, the company’s PBM business, negotiated lower rates, helping it retain and add clients. It also benefited from its popular 'Maintenance Choice' program, which lets members pick up 90-day orders at drugstores at lower mail-order prices."Not only does this foster customer loyalty, it also boosts in-store sales as customers who come for medications buy o... More About: Company , Exceptional
Gold & silver: In the limelight
2009-09-08 14:00:00 "Gold and silver have taken the limelight," says Mary Anne and Pamela Aden. In The Aden Forecast, they add, "Gold looks ready for take off and silver is poised to even outperform gold.""Technically, gold's C rise is off and running and the triangle it's formed has clearly broken to the upside, with gold recently closing at a three month high today."Going forward, gold remains strong above $955. The last two hurdles gold has to surpass is the $985 level and the record high at $1004. Once this occurs, a super bullish C rise could take gold up to possibly the $1200 level as the next target. "Silver is similar. It's also in breakout mode, it's strong above $14.40 and its last obstacle is the $15.95 level. Once broken, silver could soar."Gold shares are showing even greater strength than the metal, and gold mining stocks have are near three month highs. "Investors should keep the positions they have. If you haven... More About: Limelight
Bank on Wells Fargo (WFC): 'Ride the financial wave'
2009-09-08 06:00:00 "Bank s had taken a brutal beating over the last two years was brutal; the S&P Sector SPDR Financial s dropped 72.0% from its high last September to its low in March," notes Brandon Clay.In his Invest with an Edge, he explains, "One bank in particular is exerting itself again as a dominant player -- Wells Fargo & Company (NYSE: WFC)." Here's the advisor's review."The painful declines in bank stocks appear to have stopped for now, as bank stocks have exploded off the March lows. As we've observed, financials have 'friends in high places.'"Banks in general are showing promise as credit becomes easier. There’s still a long way to go for complete recovery, but the trend is pointing up."We like Wells Fargo for several reasons. For one, Wells Fargo is positioning itself for the new banking environment. With Citigroup out of the way, WFC is now the third largest bank by market cap."Reports sugg... More About: Ride , Wave
Gamble on WMS Industries (WMS)
2009-09-08 06:00:00 "The smart move in today's market is to stick with companies that are growing right through the recession, such as WMS Industries (NYSE: WMS)," says Mark Skousen.In The Hedge Fund Trader Alert, he explains, "Casino operators want their floors filled with games that attract gamblers and create high-profit margins for the house -- and WMS fills the bill.""Based in Waukegan, Ill., WMS designs, manufactures, leases and sells gaming machines and video lottery terminals to its customers, the casino operators."Earnings at WMS have climbed by at least 24% the past 11 quarters. And they’re still accelerating. Most recent quarterly results were up 36% on rising revenue. What’s going on here? WMS is a great innovator. And it knows its business."The company consistently creates new technology with great content and irresistible appeal to gamblers. Its slot machines and other consoles have flashy features, including Bose audio and... More About: Gamble
Invest on the 'frontier'
2009-09-04 14:00:00 "Frontier markets -- even less developed than emering markets -- are risky, but the growth potential is huge." notes Ron Rowland. In Money & Markets looks at frontier market ETFs."Until very recently the frontier markets were extremely difficult for Americans to trade. You can't just log into your online brokerage account and buy a stock in Namibia. Nor should you ... the risks are too great."But now, thanks to exchange-traded funds (ETFs), you can easily buy a diversified portfolio of frontier market stocks in one simple package. There are several dozen frontier markets. "First, frontier markets need to be investable, with a functioning local stock market that accepts foreign investment. Countries that bar foreigners can't be part of the club."Second, frontier markets must be smaller and less liquid than the more-advanced emerging markets. This is what gives them such tremendous potential. The frontier markets are scattered a... More About: Invest
Seven dividend elites: 100 years of payouts
2009-09-04 14:00:00 "While firms have cut dividends at an historic pace over the last 24 months, the fact is that there are still quality companies with long payout histories that represent good long-term investments," says Chuck Carlson.In his top-notch The DRIP Investor he says, "The 7 stocks featured here have each been paying a dividend for over 100 years, have raised dividends annually for at least the last quarter centurt and offer direct-purchase plans.""Coca-Cola (NYSE: KO) has a strong position among this group of dividend elites. The company has paid a dividend continuously since 1893. The firm has lifted its dividend annually for the last 47 years."The firm will continue to face challenges in some of its beverage markets. But Coca-Cola’s continued expansion outside the soda market should help results. "Also, its strong overseas business should get a lift from the weak dollar and presence in emerging markets. The yield of wel... More About: Years , Dividend
Buffalo Wild (BWLD) breakout?
2009-09-03 14:00:00 Leo Fasciocco specializes in finding stocks breaking out of basing patterns; in his The Ticker Tape Digest he sees a potential breakout with Buffalo Wild Wings (NASDAQ: BWLD)."Based in Minneapolis, Buffalo Wild Wings runs and franchises New York-style chicken wings spun in some 14 signature sauces. The company owns 161 restaurants and franchises 332 and has annual revenues of $422 million."The company has continued to expand its restaurants. It is projecting a 25% increase in revenues. It has benefited from an ability to raise menu prices without losing customers."BWLD's long-term chart shows the stock climbing from 10 in 2003 when it went public to a peak at 47 in 2007. It has shown choppy action since then weathering the bear market very well."The stock is pushing over its recent peak with expanding volume. That indicates good technical action. A key breakpoint would occur at $43.60."The stock's momentum indicator is strongly bullish. The acc...
Conrad calls on rural telecom
2009-09-03 14:00:00 "Rural telecom Consolidated Communications (NSDQ: CNSL) pays some of the safest and most generous dividends on the planet," says Roger Conrad in The Utility Forecaster."Rural wireline phone companies are corporations. But thanks to numerous non-cash income statement expenses and opportunities to boost efficiency and cut costs, they also effectively flow through pre-tax cash flow as dividends."In one sense, rural phone companies are like energy unit trusts. Their key resource -- local phone lines -- is constantly depleting as customers switch to wireless phones, or adopt Internet-based service. "Long-term sustainability depends on replenishing the resource with acquisitions of more rural phone lines and up-selling customers to broadband service."Even more important is the level of free cash flow, essentially operating cash flow less debt interest, cash taxes and capital expenditures. Free cash flow can be increased by boosting revenue, cutting ... More About: Calls , Telecom
Load up with Smith & Wesson (SWHC)
2009-09-03 06:00:00 "Vice stocks have consistently outperformed most other market sectors, especially during recessionary times," says Alexander Green, whose 'Seven Deadly Sins Portfolio' is up 59% in six months.One strong performer in that portfolio is Smith & Wesson (Nasdaq: SWHC). Here, the investment director of The Oxford Club explains why investors should load up on the gun maker."Smith & Wesson has been a partner in law enforcement since the 1800s, developing crime-fighting tools that set the standard for the field."Its world-famous .357 Magnum was developed specifically for law enforcement agencies, and the Smith & Wesson .38 Special has been adopted as the caliber of choice at one time or another by hundreds of police departments."The Supreme Court has recently upheld Second Amendment rights and Smith & Wesson is one of the world's leading suppliers, forging a well-deserved reputation for high-quality precision weapons."The company... More About: Load
Load up with Smith & Wesson (SWHC)
2009-09-03 06:00:00 "Vice stocks have consistently outperformed most other market sectors, especially during recessionary times," says Alexander Green, whose 'Seven Deadly Sins Portfolio' is up 59% in six months.One strong performer in that portfolio is Smith & Wesson (Nasdaq: SWHC). Here, the investment director of The Oxford Club explains why investors should load up on the gun maker."Smith & Wesson has been a partner in law enforcement since the 1800s, developing crime-fighting tools that set the standard for the field."Its world-famous .357 Magnum was developed specifically for law enforcement agencies, and the Smith & Wesson .38 Special has been adopted as the caliber of choice at one time or another by hundreds of police departments."The Supreme Court has recently upheld Second Amendment rights and Smith & Wesson is one of the world's leading suppliers, forging a well-deserved reputation for high-quality precision weapons."The company... More About: Load
The attraction of silver
2009-09-02 06:00:00 "When inflation threatens, silver offers a safe haven; even when inflation worries subside, silver still retains appeal due to its many uses," says Doug Fabian in his Making Money Alert."With inflation fears weighing on many investors' minds during recent months, gold has become a useful hedge. "But silver's performance this summer proves that gold is not the only way to invest profitably in precious metals. Increased government spending has caused the U.S. dollar to depreciate, and investors are turning to exchange-traded funds."One way to do this is by investing in precious metals such as silver and gold that are not linked directly to the U.S. dollar. "Indeed, the performance of silver has continued to shine even though the dollar started to recover during July. In contrast, the price of gold has begun to weaken with the U.S. dollar starting to rebound."There are good reasons why silver is retaining its luster. First, silv... More About: Attraction , Silver
Quant eyes financial strength
2009-09-02 06:00:00 "Investors considering high-yield stocks should consider financial strength; in our quantitative model, Quadrix, we assess profit margins, interest coverage, and debt levels," says Richard Moroney.In Dow Theory Forecasts, he looks at two stocks that score high in this area: drug manufacturer, AstraZeneca (NYSE: AZN) and defense industry player, General Dynamics (NYSE: GD). Here, the advisor reviews the two companies."AstraZeneca’s operating cash flow jumped 24% in the first half of 2009, allowing the company to retire $3 billion in debt since the end of 2008. "That extra cash also eased the way for AstraZeneca’s board to boost the September dividend 7% to $0.59 per share. AstraZeneca pays two dividends each year, with a larger payout in March. June-quarter per-share profits rose 31% to $1.64, cruising past the consensus estimate of $1.38. "In July, U.S. regulators approved Onglyza, a potential blockbuster diabetes drug... More About: Eyes , Financial
Sybase (SY): Networked for gains
2009-09-02 06:00:00 "My mantra for investing in this dicey market is to focus on three non-negotiable demands: very solid balance sheet; large, installed customer base; steady cash flows; and dividends," says Jack Adamo.In his always-excellent Insiders Plus newsletter he looks at a technology stock that meets his criteria: Sybase (NYSE: SY). He notes, "Overall, this is a company I’m comfortable owning, even in a bad ongoing recession.""Sybase is an industry leader in software to manage, analyze and distribute information across all major systems, networks and devices in the most data-intensive enterprises, such as financial services, telecommunications, manufacturing and government."To put it concisely: It manages data and makes it available to the many different devices that use it, across the myriad communication protocols that must be traversed to accomplish that."Sybase customers include large digital advertising networks, worldwide manufacturing compan...
Realty Income (O): 'Rock solid' in real estate
2009-09-01 14:00:00 "Right now, I believe real estate investment trusts (REITs) are one of the worst places you can put your money; but there is one exception," says Tom Dyson.In Daily Wealth, he looks to Real ty Income (NYSE: O), explaining, "This REIT -- which has paid 463 consecutive quarterly dividends -- is one of my all-time favorite income investments." Here's his review."I see abandoned real estate all over my town. Half the businesses still operating are running on fumes. "Our Kmart is a basket case. It's always empty. The Walgreen's is a teardown. Sears has gone. The carpet store has gone and they've boarded up the car dealership."On the other hand, guess what businesses are working best near my house? The gas station, the dry cleaners, the post office, and the Mexican restaurant. These businesses haven't seen any dent in custom, as far as I can tell."And Realty Income only does business with companies that provide basic se... More About: Estate , Real Estate , Rock
Fired up over coal ETF
2009-08-31 14:00:00 "Coal accounts for more than 70% of China's electricity," says Tony Sagami. In Uncommon Wisdom, he looks to an ETF poised to benefit from long-term rising coal demand."China's coal consumption is growing, and it is building coal-powered power plants at a breakneck pace. "Why? Because they are much cheaper to build and operate than any other power-producing option. China is power starved, and coal is the main resource used for generating electricity in the country."China alone uses more coal than the United States, Japan and Europe combined. China is also the world's top producer of steel, a big burner of coal. More coal-fired power plants are on the way. "Let this statistic sink into your brain — China is activating one new coal-fired plant every week of the year. The reason for the high demand is simple: Per unit of energy delivered, coal costs about one-fifth as much as oil."The second-thirstiest consumer of coal is th... More About: Fired Up , Fired
Two ways to ride the rails
More articles from this author:2009-08-31 06:00:00 "We rate both Burlington Northern Santa Fe (NYSE: BNI) and Canadian National Railway (NYSE: CNI) as buys," says analyst Tom Slee. The contributing editor to Gordon Pape's Internet Wealth Builder suggetss, "Burlington Northern remains my number one pick in the sector but CN is excellent value at these levels." Here's his bullish review."Burlington Northern Santa Fe had a relatively good second quarter, posting earnings of $1.18 a share. This is down from $1.34 in 2008 but beat the consensus estimate of $1.01."Year-over-year revenues fell 26% although this was offset by a 33% reduction in costs as a result of tighter controls and lower energy prices."The outlook for U.S. railways remains clouded, primarily because the American economy continues to sputter. On the other hand, volumes have stabilized in recent weeks and should improve during the second half as we move into the harvest and winter heating seasons."Further out, industry ... More About: Ride , Rails 1, 2, 3, 4, 5, 6, 7 |
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