The accompanying table includes the top 50 rated companies and statistics for the ETF Innovators (ETFI) Global Transportation PerformIdex, which is structured as an equally-weighted index with quarterly updates from a database of 225 companies included in the following five indexes:
The ETFI Global Railroad PerformIdex includes 41 companies with market caps over $200M and is structured as a market cap weighted index, with a total return of -12.7% over the past year, as compared to a decline of 20.7% for IYT in the last year and 22.8% for PTRP since its launch in mid-September. Benchmark transport ETFs already on the market include the iShares Dow Transports (IYT) (five duplicate companies) and the PowerShares Progressive Transport (PTRP) (nine duplicate companies
Warren Buffett is shopping for railroad stocks again. The ‘Oracle of Omaha’ increased his stake in Burlington Northern (NYSE: BNI ) to almost 20% last month. Fuel efficiency and road congestion are two key factors supporting a bullish outlook for the railroad industry, says Jason Simpkins .
Last month, the iconic investing guru once again displayed his enthusiasm for railroad stocks by adding to his already sizeable stake in Burlington Northern Sante Fe Corp . (NYSE: BNI ). After picking up 7.85 million shares of Burlin
As evidence of a bullish long-term outlook for railroads, Warren Buffet's Berskshire recently increased its stake in Burlington Northern (BNI) and the CEO of Kansas City Southern (KSU), Michael Haverty, appeared on Larry Kudlow's show on CNBC Thursday evening, stating that rail transport was showing continued strength in the transport of coal, chemicals, and grains with weakness in the transport of consumer goods and housing related commodities. Berkshire paid $79.65 each to add 825,000 shares of BNI, upping its stake in
As evidence of increased commercial interest and product development for a variety of global transport ETFs, the following ideas have been either launched or filed: Claymore/Delta Global Shipping (SEA) (Aug. launch), PowerShares Global Progressive Transportation (PTRP) (Sep. launch), and SPDR Transportation (filed with SEC). The iShares Dow Transports (IYT) is easily the most popular transport ETF with investors, with $689M in net assets as of the market close yesterday as compared to $1.8M for PTRP and $4.7M for SEA.
Transports have provided a safe haven for investors with the iShares Dow Transports ( IYT ) registering a small gain over the past year in spite of a meltdown in financials and sharp losses in the overall market averages, before the recent market meltdown. The gains in the Dow Transport ETF were largely the result of a strong performance by the top four U.S.-based railroads by market cap, which account for over 30% of the stock holdings in IYT.
As evidence of increased commercial interest and product development ofglobally-f
Railroad companies represent a compelling investment theme despite the run-up in the stock prices of major U.S. players in the industry such as Warren Buffett favorite Burlington Northern Santa Fe (BNI), which Berkshire Hathaway owns nearly 64 million shares for an 18% stake . Railroad companies have pricing power as increased demand for the fuel-efficient transport of energy and agricultural commodities is combined with limited n
"Warren Buffett's holding company, Berkshire Hathaway (NYSE: BRK.B), has been the single greatest investment of our lifetimes," says Alexander Green, noting, "His compounded annual gain from 1966 to 2007 was 21.1% vs. 10.3% or the S&P 500."
In the Oxford Insight, the investment director explains, "It is now time to buy the 'ultimate no-brainer'." Here's his assessment.
"Despite this strong long-term performance, Buffett experienced a rare earnings letdown during the second quarter of this year.
An article on ETF Trends today by Timothy Hubbard provides a bullish outlook for the future of rail transport and lists the major holdings in the iShares Dow Transports ETF (IYT) from the railroad industry. My new index/ETF idea, Global Railroad BULLISHares, would provide investors with a leveraged and diversified investment vehicle for the global rail transport industry. As illustrated in the accompanying image, the four major US-based railroad companies drove the performance in this index, including Union Pacific (UNP), Burlington Northern (BNI), Norfolk Southern (NSC), and
Why would this key group be showing signs of life when the overall market is still suffering - in fact, the major stock indexes are technically in a bear market?
"Even with the poor outlook for the economy, there are many investment opportunities being created by high energy prices and the low dollar," notes Jim Powell. In his Global Changes & Opportunities Report, he explains, "American 'rust belt companies' look especially good."
"Surprisingly, rising fuel prices are making some American manufacturers more competitive and I could not be happier about the improved outlook for many efficient U.S. producers.
"Even with the poor outlook for the economy, there are many investment opportunities being created by high energy prices and the low dollar," notes Jim Powell.
In his Global Changes & Opportunities Report he explains, "American 'rust belt companies' look especially good." Here, the advisors reviews a trio of favorites.
"Surprisingly, rising fuel prices are making some American manufacturers more competitivenoting, "I could not be happier about the improved outlook for many efficient U.S. producers.
"U.S. machine tool makers are starting to take back some of the business they lost to Japan 20
Recap of CNBC's Fast Money, Tuesday June 17.
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Will Goldman Lose its Shine? Goldman Sachs (GS)
In spite of decent news from Goldman, the Dow dropped and stocks were mediocre. While the investment bank’s quarterly earnings declined 11% on slower trading, Goldman still avoided much of the credit crisis woes that have plagued other banks. However, Fox Pitt Kelton securities analyst David Trone says it will be a while before Goldman is a buy, because government regulation is looming over all the brokers; “their long term returns are going to be permanently suppressed and in my opinio
Railway Stocks
- With rising prices in oil, people are moving to cheaper means of transportation to get commodities and other goods throughout the country. It is theref...
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"Even with the poor outlook for the economy, there are many investment opportunities being created by high energy prices and the low dollar," notes 
