Railroads evoke different images or memories for each of us. For some, it is the whistle in the middle of the night. For others, travel to exotic places on the Orient Express. In the United States, the business of railroads is to haul goods across our fair land. The money losing enterprise of people moving is left to the government.
In 2009, the railroad freight industry generated $49 billion in revenue, down due to the recession from $63 billion in 2008. Seven Class I railroad systems account for 90 percent of the industry’s total. In 2009, in addition to the seven Class I freight railroad systems – systems with annual operating revenue of $378.8 million or more – operating in the United States, there were 23 regional railroads and over 500 local railroads.
In 2009, the major rail-carried commodities (in terms of ton-miles) included coal (42%), intermodal traffic (trailers and containers on flatcars) (14%), farm products (predominantly grain and soybeans) (11%), and chemical products (10%).
Railroad stocks are closely tied to the overall economy. During the recession they suffered considerable drops in revenue and income. It was during this time that Warren Buffet famously bought Burlington Northern Santa Fe. As the economy gains strength, these companies will prosper.
In 2009, the railroad freight industry generated $49 billion in revenue, down due to the recession from $63 billion in 2008. Seven Class I railroad systems account for 90 percent of the industry’s total. In 2009, in addition to the seven Class I freight railroad systems – systems with annual operating revenue of $378.8 million or more – operating in the United States, there were 23 regional railroads and over 500 local railroads.
In 2009, the major rail-carried commodities (in terms of ton-miles) included coal (42%), intermodal traffic (trailers and containers on flatcars) (14%), farm products (predominantly grain and soybeans) (11%), and chemical products (10%).
Railroad stocks are closely tied to the overall economy. During the recession they suffered considerable drops in revenue and income. It was during this time that Warren Buffet famously bought Burlington Northern Santa Fe. As the economy gains strength, these companies will prosper.
Top Railroad Stocks To Buy For 2013: WMS Industries Inc. (WMS)
WMS Industries Inc. engages in the design, manufacture, and distribution of gaming machines, and video lottery terminals (VLTs) for customers in gaming jurisdictions worldwide. The company offers video gaming machines, mechanical reel gaming machines, and video poker gaming machines under Bluebird, Bluebird2, and Twinstar brand names. It also sells replacement parts, conversion kits, amusement-with-prize gaming machines, and used gaming machines, as well as equipment manufactured under original equipment manufacturing agreements to casinos and other licensed gaming machine operators. In addition, the company involves in licensing its gaming themes and other intellectual property to third parties; and leasing of gaming machines and VLTs to casinos and other licensed gaming machine operators. Further, it engages in gaming operations business that include providing participation games, such as wide-area progressive participation games under the brand names, such as MONOPOLY GRAND HOTEL, BIG EVENT, CLINT EASTWOOD, POWERBALL, TOP GUN, THE WIZARD OF OZ, TIME MACHINE, Reel em In Compete To Win, and JOHN WAYNE; local-area progressive participation games under the Jackpot Party Progressive, Life of Luxury, GREEN ACRES, THE DUKES OF HAZZARD, and HAPPY DAYS brands; stand-alone participation games under the MONOPOLY and PRESS YOUR LUCK brands; casino-owned daily fee games; leased for-sale games; and centrally determined systems. The company was formerly known as Williams Electronics, Inc. WMS Industries Inc. was founded in 1946 and is headquartered in Waukegan, Illinois.Advisors’ Opinion:- By Beacon Equity At 2011-9-22WMS Industries Inc. (NYSE: WMS) is down 17.17% to $30.00 on volume of 5.92 million shares. It set a new 52-week low of $29.85 early in the session. The slot-machine manufacturer late Monday warned of lower-than-expected results for the third quarter. (NYSE:WMS), (WMS)
Top Railroad Stocks To Buy For 2013:Enbridge Inc (ENB)
Enbridge Inc. engages in the transportation and distribution of crude oil and natural gas primarily in Canada and the United States. Its Liquids Pipelines segment operates common carrier and contract crude oil, natural gas liquids (NGLs), and refined products pipelines and terminals. The company?s Gas Distribution segment distributes natural gas to residential, commercial, and industrial customers primarily in central and eastern Ontario, northern New York State, Quebec, and New Brunswick. Enbridge?s Gas Pipelines, Processing and Energy Services segment invests in natural gas pipelines, processing and green energy projects, and commodity marketing businesses, as well as performs commodity storage, transport, and supply management services. Its Sponsored Investments segment transports crude oil and other liquid hydrocarbons through common carrier and feeder pipelines, as well as transports, gathers, processes, and markets natural gas and NGLs; operates a crude oil and liquids pipeline and gathering system; and owns a 50% interest in the Canadian portion of Alliance Pipeline and partial interests in various green energy investments. The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.Advisors’ Opinion:- By Louis Navellier At 2011-11-17Enbridge Inc. (NYSE:ENB) is an energy transportation and distribution company separated into six segments: Liquids Pipelines, Gas Distribution, Gas Pipelines, Processing and Energy Services, Sponsored Investments and Corporate. Enbridge stock has gained 13% in 2011.
Top Railroad Stocks To Buy For 2013: Middlesex Water Company (MSEX)
Middlesex Water Company, together with its subsidiaries, owns and operates regulated water utility and wastewater systems in New Jersey, Delaware, and Pennsylvania. It engages in collecting, treating, distributing, and selling water for domestic, commercial, municipal, industrial, and fire protection purposes. The company also operates water and wastewater systems under contract on behalf of municipal and private clients, as well as provides water, water treatment, pumping services, and wastewater services. In addition, it provides a water service line, as well as various maintenance programs that cover parts, material, and labor required to repair or replace specific elements of the customer?s water service lines, and customer shut-off valve and/or sewer lateral in the event of a failure. The company provides water services to approximately 60,000 retail customers primarily in central New Jersey; 34,000 retail customers in New Castle, Kent, and Sussex Counties, Delaware; 6,000 customers in Kent and Sussex Counties; and 120 retail customers in the Township of Shohola, Pike County, Pennsylvania, as well as offers wastewater services to approximately 1,900 residential retail customers in Delaware. Middlesex Water Company was founded in 1897 and is headquartered in Iselin, New Jersey.Advisors’ Opinion:
- By Sherry Jim At 2011-10-21Hero Honda Motors Ltd is a successful joint venture between India’s Hero Group and Japanese Honda Motors Company. This progressive company is not only the world’s single largest two wheeler company but also a model joint venture company worldwide. Hero Honda in India has managed to achieve indigenization of over 95 percent, a Honda record worldwide.
Over the years, the Company has received its share of accolades, including the National Productivity Council’s Award (1990-91), and the Economic Times – Harvard Business School Association of India Award, overtaking 200 contenders. If an investor wants his money to be safe and at the same time grow, it is wise to buy Hero Honda shares.
Top Railroad Stocks To Buy For 2013: Hitachi Ltd. (HIT)
Hitachi, Ltd. manufactures and sells electronic and electrical products primarily in Asia, North America, and Europe. Its Information & Telecommunication Systems segment provides systems integration, outsourcing services, software, disk array subsystems, servers, mainframes, telecommunications equipment, and ATMs. The company?s Power Systems segment offers thermal, nuclear, hydroelectric, and wind power generation systems. Its Social Infrastructure & Industrial Systems segment provides industrial machinery and plants, elevators, escalators, and railway vehicles and systems. The company?s Electronic Systems & Equipment segment offers semiconductor and LCD manufacturing equipment, test and measurement equipment, medical electronics equipment, power tools, and electronic parts manufacturing systems. Its Construction Machinery segment provides hydraulic excavators, wheel loaders, and mining dump trucks. The company?s High Functional Materials & Components segment offers wires and cables, copper products, semiconductor and display-related materials, circuit boards and materials, specialty steels, magnetic materials and components, and casting components and materials. Its Automotive Systems segment provides engine management systems, electric power train systems, drive control systems, and car information systems. Hitachi?s Components & Devices segment offers HDDs, LCDs, information storage media, and batteries. Its Digital Media & Consumer Products segment provides optical disk drives, flat-panel TVs, LCD projectors, mobile phones, room air conditioners, refrigerators, washing machines, and air-conditioning equipment. The company?s Financial Services segment offers leasing services and loan guarantees. Its Others segment provides logistics and property management services. The company serves industrial companies, financial institutions, utilities, governments, and individual customers. Hitachi was founded in 1910 and is headquartered in Tokyo, Japan.Top Railroad Stocks To Buy For 2013: China Metro-Rural Holdings Limited (CNR)
China Metro-Rural Holdings Limited, through its subsidiaries, primarily engages in the development and operation of agricultural logistics and trade centers in northeast China. It also involves in purchasing, processing, assembling, merchandising, and distributing pearls and jewelry products. The company markets its pearls and jewelry products to wholesale distributors and mass merchandisers in Europe, the United States, Hong Kong, and other parts of Asia. In addition, it develops, sells, and leases residential and commercial properties in Hong Kong and the People?s Republic of China. The company is based in Tsimshatsui, Hong Kong.Advisors’ Opinion:- By Wyatt Research Staff At 2011-8-30The stock moved significantly higher in mid-January and traded in a fairly tight range ever since. However, that could change soon. China’s agricultural exports to Japan will grow if radiation continues to seep into the food chain.
China exported $593 million worth of agricultural goods to Japan last year.
Top Railroad Stocks To Buy For 2013: Formula Systems (1985) Ltd. (FORTY)
Formula Systems (1985) Ltd., through its subsidiaries, operates as an information technology (IT) solutions and services company worldwide. Its Software Services segment provides software solutions and services, including the development of customer software systems; customization of software developed to provide a response to customers’ requirements; systems assimilation; offshore and domestic services primarily for software developments and quality assurance, and software testing; and integration of various components. It also supplies infrastructure solutions for computer and communication systems, as well as sells hardware products; and operates technological training and qualification centers, which provide professional courses for hi-tech personnel, training and assimilation of computer systems, applications courses, professional training, soft-skills training, and training for capital market operations. The company?s Proprietary Software Products segment develops, markets, sells, and supports application platform, and business and process integration solutions, including uniPaas Application Platform, an application platform that supports various deployment models; and iBOLT Business and Process Integration Suite that provides business integration and process management solutions with a focus on enterprise applications. It also provides consulting and software development project management, maintenance, technical support, and training services; and telecom infrastructure technologies, cargo handling, and installation service. In addition, this segment offers software solutions for the insurance industry comprising Sapiens INSIGH, a suite of business software solutions that helps insurance carriers adapt to the insurance marketplace; IT services; and outsourcing services. Formula Systems (1985) Ltd. was founded in 1985 and is headquartered in Or Yehuda, Israel. As of November 25, 2010, Formula Systems (1985) Ltd. operates as a subsidiary of Asseco Poland SA.Advisors’ Opinion:- By Vita At 2011-8-26FORTY is an Israel-based software and IT company. Recently, they have been on a tear with first quarter profits soaring 42%. This past year the stock has soared, but don’t expect this trend to stop anytime soon. With a P/E ratio of 12, this stock has become a clear “BUY.” The 10% dividend it pays out is not bad either.
