There has been some talk about the railroads have reached their peak. Lots of talk about high fuel cost will hurt earnings. The big question I have is who will haul all the rising demand for coal, copper, iron oar, and the list goes on and on. The railroads will of course, and several have direct ties to sea shipping and air freight.
IMO they have a long term outlook of growth, most likely slower than the last year, but still nice for core holdings.
Now with all that hauling they will need RR cars and the builders are few. Lots of repair shops, most owned or controlled by the railroads. These are two and RAIL has not been trading long so it is a daily chart, and take note of first day volume.
IMO this is a sector in transportation that still has a "come back" future.
Comments and thoughts are welcomed.
