Is the Union Pacific Making Money?

The Union Pacific has a pretty bright future because it owns four rail lines that connect the Great Plains to the West Coast.

They include the original transcontinental rail line from Omaha, Nebraska to Oakland, California and the Southern Pacific line from Los Angeles to Houston. Shorter routes include the line from Salt Lake City to Los Angeles, and the Oregon shortcut from Pocatello, Idaho, to Portland, Oregon, and Seattle. Other key routes include a line from El Paso to Chicago, the line from Houston to Chicago, and the line from Denver to Salt Lake City.

These tracks put the Union Pacific in a great position to cash in on all the raw materials shipped from the West and Midwest to Pacific and Gulf Coast Ports. It is also in a good position to haul all the consumer goods shipped from China to U.S. ports.

Read more

Are Railroads Still a Growth Industry?

The true problem here is that the drop in revenue growth seems to be occurring throughout the U.S. railroad industry. Union Pacific (NYSE: UNP) reported a rate of -9.74% on June 30, 2015, while CSX reported a rate of -5.55% on the same day. The other big publicly traded U.S. railroad operator, Norfolk Southern (NYSE: NSC), reported a rate of 4.54% on March 31, 2015.

Read more

Stocks for the Long Haul

This Internet giant could well become the Exxon of the 21st century, a company that is the backbone of the new econmy. Google has a lot of float, and it performs consistently.

Read more

Is Deflation Beginning?

It looks as if an economic downturn has begun. Only time will tell if this is actual deflation or simply a case of the jitters on the part of consumers. One thing is clear though; the rumors of an economic recovery seem to be greatly exaggerated.

Read more

Is Uncle Warren Going Shopping?

What’s more intriguing is that Uncle Warren himself seemed to confirm such speculations with a cryptic remark to MSNBC. After calling Exxon a “wonderful company,” he said, “We thought we might have other uses for the money.”

Read more

The Railroad Everybody Forgets About: Kansas City Southern

The assets are the connections to the port of Lazaro Cardenas on the Pacific and the track that connects it to Kansas City. The Kansas City Southern has a direct connection between those ports and America’s heartland.

Read more

What would a Hyperloop Economy look like?

One result of a hyperloop would be a sort of economic boom in areas with lots of cheap housing that is in fairly close proximity to expensive urban areas. Another would be a fall in housing prices in areas where there are currently shortages that lead to high priced housing.

Read more

Union Pacific Shows Falling Oil Price Not a Threat to Railroads

The UP also reported a year to year quarterly revenue growth rate of 9.29% on Dec. 2014 and a profit margin of 23.26% on Dec. 31, 2014, not to mention a return on equity of 24.28%.

Read more

Musk’s Game Changing Hyperloop Is Closer to Reality

If it gets built, the Hyperloop could be very profitable, if railroad revenues are anything to go by: Union Pacific’s TTM revenue increased by nearly $2 billion between September 2013 and September 2014.

Read more