Sell Union Pacific (UNP)   8 comments

I sold my Union Pacific (UNP) stock at $153.70. Frankly, it has been a huge disappointment, especially it’s last earnings report. Norfolk Southern (NSC) looks like the railroad to buy, but it’s sitting at the top of it’s range right now, so I will have to wait.

The final line for Union Pacific (Friday’s results included):

UNP: +2.30 over the past 2 days, +0.22 overall to $153.70 (+1.52% past 2 days, +0.14% overall)–bought at $153.48


Posted November 4, 2013 by edmcgon in Portfolio Moves

8 responses to “Sell Union Pacific (UNP)

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  1. Ed,

    What are your thoughts on TWI as turnaround play?

    • Ojunker,
      There’s some good and bad there.

      Good: I like the CEO (Taylor tells it like it is), the PEG ratio is on the low-ish side (0.91), and revenue went up 23% last quarter (yoy).

      Bad: Margins are tight (2.2% profit margin), earnings dropped 59% last quarter (yoy), negative levered free cash flow (-$48 million), and 104% debt/equity.

      If you really want a tire company, TWI will do. As far as price goes, the current price is about as good as you will get if it does turn around. It’s risky, but I won’t say “don’t buy it”.

  2. Ed – sorry about Union Pacific. I first put NSC on my watch list on June 25th at $71 a share. I had a buy order in a $66. They have never looked back and are now at $87. I would still like to buy them. By a number of metrics, I do not think they are expensive, but I will wait and see if I see a better entry point.

  3. I am a long term holder of NSC with an average cost of $53.00. The dividends just get plowed back into additional shares. I doubt that I will ever sell it.

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