News Wire: Pension changes not a big deal, eh?

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Posted by Brian Schmidt on Tuesday, January 09, 2018 4:03 PM

Accounting rules will drive up operating ratios at CN and CP, but they'll still lead Class I railroads in the metric

http://trn.trains.com/news/news-wire/2018/01/09-operating-ratio-changes-eh

Brian Schmidt, Associate Editor Trains Magazine

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Posted by Ulrich on Tuesday, January 09, 2018 9:01 PM

Just so long as the dividends keep rolling in and the stock appreciates in value for the vast majority of us who have no employer pension plan.

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Posted by RR Johnson on Thursday, January 11, 2018 3:34 AM
Go BNSF!! My bank account needs you and other U.S. railroads to stay solvent.
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Posted by tree68 on Thursday, January 11, 2018 7:32 AM

Ulrich
Just so long as the dividends keep rolling in and the stock appreciates in value for the vast majority of us who have no employer pension plan.

And this would be the worry about vulture investors who want to run up the stock value then cash out, leaving others to worry about the ruins that follow.  

For that matter, many folks do have an retirement plan that relies on that slow and steady growth, albeit usually in a variety of investments.

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Posted by Ulrich on Thursday, January 11, 2018 10:10 AM

I wrote the book on buy and hold.. have owned CN since the IPO in 1995 and have never sold a share. so far so good. In fact.. have never sold a share of anything.. Will have to in another 20 years or so though..

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Posted by jeffhergert on Saturday, January 13, 2018 6:51 PM

tree68

 

 
Ulrich
Just so long as the dividends keep rolling in and the stock appreciates in value for the vast majority of us who have no employer pension plan.

 

And this would be the worry about vulture investors who want to run up the stock value then cash out, leaving others to worry about the ruins that follow.  

For that matter, many folks do have an retirement plan that relies on that slow and steady growth, albeit usually in a variety of investments.

 

My wife and I like watching CNBC's Nightly Business Report on PBS stations.  It seems almost weekly, if not more frequently, they report about a company under pressure from "activist investors." 

Jeff

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Posted by Electroliner 1935 on Saturday, January 13, 2018 9:26 PM

At least it's not Pennsylvania Rairoad stock. The Standard Railroad of the world. Always paid a dividend until it didn't. Back in the late fifties, when I was a co-op student with them, I said things are bad, they can't get much worse. I was SO WRONG. I suspect that CN will be in good shape for the near term. They have good cash flow and can cover the capitol costs for the capacity improvements they need. How long the traffic will be there is the question. In fact, most Class 1's are in good shape. Except CSX which seems to have become confused as to how to satisfy its customers. NS has had a loss of coal traffic but otherwise looks like it knows what it needs to do. BNSF is completeing its double tracking of the transcon. And while it did add capacity to the Baken Oil area, it did not overbuild. UP has restrained itself on double tracking the Sunset route and is not facing any gridlock. I think most RR's still remember the PRR and don't want to overbuild and get stuck with overcapacity. 

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Posted by CSSHEGEWISCH on Tuesday, January 16, 2018 7:16 AM

It's pretty well known that PRR took an operating loss in 1946 and still paid a dividend, probably financed by dividends on its 33% interest in N&W.  PRR's management and operating practices were also incredibly conservative and this didn't help the financial situation.

The daily commute is part of everyday life but I get two rides a day out of it. Paul

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