If the stock price nosedives low enough, one can hope and pray that a Warren Buffett type of investor will buy the whole thing and tell the Wall St. hedge funds what they can do with themselves. From what I have read, CSX is in need of a leader that has a passion for railroading and wants to see it grow and thrive.
Two key items in the Tax Bill before Congress (IF it passes) will benefit railroads, and should also impact the stock market overall:
1. Corporate tax rate reduced from 35% down to 21%. (Corporations will be paying 40% less taxes on their Net Income Before Taxes.)
2. Immediate expensing of new investment purchases (capital investment) for tax purposes for five years, which will further drive down their tax bill during that time period.
Much of that will likely drive up share prices as most of the tax savings will primarily be used, one would suspect, for dividends and share buybacks.
However, it might also accelerate capacity investments for certain projects. Two that come to mind are both on BNSF - the second bridge over the Missouri River at Sibley, MO on the Southern Transcon and the second bridge over Lake Pend Oreille on the Northern Transcon.
In fact, I would hazard a guess that if one railroad will optimize the use of those tax changes for both immediate and long term gains, it would be BNSF because of their unique situation as a wholly-owned subsidiary of Berkshire Hathway. There is no need for them to use earnings to buy back shares. So, in theory, they will likely be able to both increase their dividend payment to Berkshire Hathway because of the tax savings, while at the same time using some of the cash flow from the tax savings to complete capacity enhancements which further reduces their tax bill for five years, while at the same time setting them up for further business growth and future profits.
It will be very interesting to see how that all plays out at the US "Big Seven" (including the US properties of CN and CP which still exist as corporate entities in the US).
Uh, Hunter baby, I'm not for you or against you, I don't have a dog in this fight, but it seems to me the "Big Division Superintendant In The Sky" is tapping you on the shoulder and telling you to call it a day.
Go to your horse farm and enjoy what time you have left.
Normally - CSX issues a daily compendium of news articles where CSX is involved in one way or another. I noticed that nothing was published for 12/14 and 12/15. Hmmmmmmm?
https://csx.newsweaver.com/csxdailynews/
Never too old to have a happy childhood!
Firelock76 Uh, Hunter baby, I'm not for you or against you, I don't have a dog in this fight, but it seems to me the "Big Division Superintendant In The Sky" is tapping you on the shoulder and telling you to call it a day. Go to your horse farm and enjoy what time you have left.
You called it! This publication is now reporting his passing.
The Wall Street Journal is reporting that Hunter Harrison has passed away.
https://www.wsj.com/articles/csx-ceo-hunter-harrison-has-died-1513453754
With EHH's passing I doubt you will see a complete impementation of his vision. I don't care how much Foote believes in PSR, he is not Harrison. Looking in from the outside, it appears EHH got much done with his charisma and dogheaded determination. You don't replace that without losing a bit. CSX's stock will now normalize relatively quickly. It may not go back to the 20's before the EHH talk started, but I don't see it staying in the 50's. My guess is upper 30's to low 40's.
Saturnalia Firelock76 Uh, Hunter baby, I'm not for you or against you, I don't have a dog in this fight, but it seems to me the "Big Division Superintendant In The Sky" is tapping you on the shoulder and telling you to call it a day. Go to your horse farm and enjoy what time you have left. You called it! This publication is now reporting his passing.
Wow. So why can't I pick any winning lottery numbers?
With his leave just being announced before he croaked, it makes you wonder how long they were covering up his true condition. Maybe Sanborn and others wouldn't have resigned if they knew that they only had to put up with him for another month.
Whoa! Wholeee Moleee again.
kgbw49 The Wall Street Journal is reporting that Hunter Harrison has passed away. https://www.wsj.com/articles/csx-ceo-hunter-harrison-has-died-1513453754
The personification of Satan - good ridence!
sniff!Yes, "GOOD RIDDANCE!!!!"Now Hillbilly Harrison will forever be buried in MUD.
["Two key items in the Tax Bill before Congress (IF it passes) will benefit railroads, and should also impact the stock market overall:
1. Corporate tax rate reduced from 35% down to 21%. (Corporations will be paying 40% less taxes on their Net Income Before Taxes.)"]
The marginal corporate tax rate is being reduced from 35 percent to 21 percent. The true impact on a corporation’s tax liability will be the difference between the new rates and its effective tax rate. The spread is likely to change. Most effective corporate tax rates (what the corporation actually pays in corporate income taxes) are substantially below the marginal rates.
A little discussed issue is the impact of the change in the corporate tax rates on any deferred tax credits being carried on the company's books. As reported by Reuters, Citibank and Bank of America, as examples, are likely to take a serious hit to net income because of adjustments to their deferred tax credits.
The proposed change in the corporate tax rate is a step in the right direction, but it does not go far enough. If I were King for a Day, I would eliminate all corporate taxes. Corporations don't pay taxes; they are usually passed through to their customers, although sometimes the shareholders and workers may have to absorb some of them
Rio Grande Valley, CFI,CFII
JPS1 ["Two key items in the Tax Bill before Congress (IF it passes) will benefit railroads, and should also impact the stock market overall: 1. Corporate tax rate reduced from 35% down to 21%. (Corporations will be paying 40% less taxes on their Net Income Before Taxes.)"] The marginal corporate tax rate is being reduced from 35 percent to 21 percent. The true impact on a corporation’s tax liability will be the difference between the new rates and its effective tax rate. The spread is likely to change. Most effective corporate tax rates (what the corporation actually pays in corporate income taxes) are substantially below the marginal rates. A little discussed issue is the impact of the change in the corporate tax rates on any deferred tax credits being carried on the company's books. As reported by Reuters, Citibank and Bank of America, as examples, are likely to take a serious hit to net income because of adjustments to their deferred tax credits. The proposed change in the corporate tax rate is a step in the right direction, but it does not go far enough. If I were King for a Day, I would eliminate all corporate taxes. Corporations don't pay taxes; they are usually passed through to their customers, although sometimes the shareholders and workers may have to absorb some of them
Corporations the size of CSX adhere to Trumps pronouncement before the election process 'Only dummies pay taxes'. 35% of nothing is the same as 21% of nothing.
"Corporations the size of CSX adhere to Trumps pronouncement before the election process 'Only dummies pay taxes'. 35% of nothing is the same as 21% of nothing."
CSX must be pretty dumb. In 2016 CSX paid $540 million in federal income taxes and $82 million in state and/or foreign income taxes. Total income tax expense was $1,027,000 of which $405 million was deferred.
As I said previously, most if not all of CSX's tax burden is ultimately paid by its customers.
JPS1 "Corporations the size of CSX adhere to Trumps pronouncement before the election process 'Only dummies pay taxes'. 35% of nothing is the same as 21% of nothing." CSX must be pretty dumb. In 2016 CSX paid $540 million in federal income taxes and $82 million in state and/or foreign income taxes. Total income tax expense was $1,027,000 of which $405 million was deferred. As I said previously, most if not all of CSX's tax burden is ultimately paid by its customers.
Throughout the supply chain that is you and I and the rest of the thousandaires with everything we buy or use and any service we avail ourselves of.
E. Hunter Harrison died tonight. Heard on midnight news. (Pacific Time)
I tried to sell my two cents worth, but no one would give me a plug nickel for it.
I don't have a leg to stand on.
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