Investing Ideas
Trucking Dies & Railroads Fly When Diesel Fuel Crests $3.00 | Well, maybe not. Back to this weekend. The “thing” that’s missing in the reporting of the recent correction is a psychological perspective. You see, the 10-percent correction took the SPX into the red for the year. | |
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| Trucking Dies & Railroads Fly When Diesel Fuel Crests $3.00 |
| Friday, 06 June 2008 | ||||||||
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Rail has a powerful tenfold advantage over trucking when fuel costs are high. Heavy Trucks require 3,357 BTU per short ton mile while Class 1 Railroads use only 341 BTU per short ton mile. The moment diesel fuel crested $3/gallon trucking simply could not compete. This trend will only accelerate now that diesel prices have passed the $4 mark. ![]() It’s no shock that mega-investors like Buffett and Soros are reinventing themselves as modern-day rail barons. You should, too: * Buy CSX (CSX: NYSE) * Sell Con-Way Frt. (CNW: NYSE) Adam Lass Senior Editor, WaveStrength Options Weekly
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