Idea for Canadian National Railway: - An interesting thing has occurred. CNR approached Kansas City Southern (KSU) with an unsolicited offer that would merge the companies to become the first and only single railroad to cross Canada, the US, and Mexico. A combination of either CNR or CP with KSU would do this. Naturally, CP will want to stop this existential...
"Canadian Pacific and Kansas City Southern Agree to Combine to Create the First U.S.-Mexico-Canada Rail Network" read yesterday's news. I expect further continuation to this movement higher. Wave 2 was put in after an A-B-C correction right at the 50% fib retracement. Increased volume last Friday possibly anticipating the news.
NSC - Ascending triangle, Rail sector news. Canadian Pacific Railway (CP) To Buy Kansas City Southern (KSU) In US$29 Bln Deal. NSC is forming an Ascending triangle on daily TF. There will only be 5 rail stocks left with a positive ROI, based on Finviz.com screener.
Nice risk/reward setup. As long as prices stay above the February highs, we think KSU heads towards $230
Not a huge volume of stock or one to have a huge move all at once but we are putting a trade on at the break of 185. With a solid bounce in the market, if we have one in the next few days it could result in a solid move and a nice payday. Guys, if you enjoy this insight, join our newsletter at www.investoratlas.org its free.
IYT Transport Golden cross on Aug 21, looking for continuation. You can see the accumulation candles in the chart. The top 4 holdings are FDX, UNP, NSC and KSU, which make up over 40% of ETF. Using seasonality charts, IYT in sept is up 2.5% the past 4 years.
No technicals bullshit here, purely fundamental driven. Micro PSR is the key theme in railroads right now. Despite a lower operating ratio CSX implementing PSR isn't proving to be as effective as people think and the optimism associated has created a bubble. Macro Railroad data weaker YoY - Bearish - www.aar.org Earnings Growth Positive - Bullish - But how...