Home » Bear Case Scenario » CSX Corp Death Watch; Bear Case Scenario or Just Deep Value Opportunity $CSX, $UNP, $NSC, $CNI,

CSX Corp Death Watch; Bear Case Scenario or Just Deep Value Opportunity $CSX, $UNP, $NSC, $CNI,

CSX Corp. will release earnings shortly. Ponder this Bear Case Scenario. Is CSX on a death watch or is this just a very deep value play that takes courage.

CSX has suffered from a drop in coal shipments. Given the increase in nat gas production coal production is not coming back. Throw in a diminished steel business and well you have bad numbers.

Track and road bed maintenance will take up to some 18% of revenues. This problem never goes away and is always expensive. Derailments look back through the rear view mirror at track maintenance. It becomes political. In the meantime clients shipments are held up. Money is lost. You can pay me now or you can pay me later. why didnot they pay yesterday and get it over with.

Grain cargoes are simply not carrying the day. too little too late and not enough anyway.

CSX has some strategic thinking to do.

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