Blanchard Railroad Week in Review, First Quarter 2007

The Railroad Week in Review:
First Quarter 2007

Current Issues

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Week in Review, 1/5/2007
A large part of making better operating decisions today is knowing what to expect tomorrow -- tidbits on a few things you may see in 2007. Baird's Jon Langenfeld sees "a tough near-term trading environment for transportation stocks." Bear Stearns' Ed Wolfe likes what he sees at JBHT; implications for shortlines.Good news for DME from Minnesota's 8th Circuit Court. US rail traffic hits 1.7 trillion ton-miles through Week 51 making 2006 the ninth record year in a row. Gilbertson named president of Minnesota Regional Rail Assn. IAIS acquires Lincoln & Southern.
Week in Review, 1/12/2007
How rail sector stocks have entered another lull similar to what we saw last May. Why back-testing is a very useful tool to find trends and returns over time. Yet another indication that forest products companies are not yet out of the woods. Lessons from Greenbrier’s first quarter conference call. One shortliner's view of the railroads' image problem. Why good stock pickers make good shortline buyers.Parting shot: It's time to get rid of shortline car hire relief.
Week in Review, 1/19/2007
UP moved nearly 900 more trains out of the PRB in 2006 vs 2005; could be worth $7 mm in new shortline revenue. Small but encouraging response to my car hire challenge; more to come next week. Don Phillips writes on new strides in freight train safety; I see shortline implications and opportunities. The latest from Wabtec and American Rail Car. Growth estimates for 2007. A reader comments on education and economic benefits of short haul rail moves.
Week in Review, 1/26/2007
Five of six class Is have checked in. The theme is solid revenue increases on slight revenue unit changes and serious cost control. See write-ups on each railroad. Table. Note especially opportunities and caveats for shortlines.New Feature: Trade of the Week.
Week in Review, 2/2/2007
STB fuel surcharge decision less than meets the eye -- EP 661 excerpts, comments, short line impact. Tony Hatch on Earnings Week and other observations. Car builder notes from GBX, TRN.
Week in Review, 2/9/2007
KCS wrapped up the Class I roads’ earnings season with one of the most powerful and engaging presentations of the lot. The importance of emphasizing carload contribution over revenue. CSX introduces its web-based ISA Measurement Tool for short lines. Strike talks continue between CN and the Canadian UTU. Quarterly results for RAIL.
Week in Review, 2/16/2007
Genesee & Wyoming (NYSE: GWR) Q4 net income up 34% yoy and up 168% for the year. Continuing the ISA measurement thread. Watco sells Coulee City-Cheney line to Washington DOT. RailAmerica disappears from the stock tables as Fortress deal closes. What do Home Depot, Fortress and shortlines have in common? Car-builder comments. Further developments in my revenue vs. contribution thread.
Week in Review, 2/23/2007
CSX presented its 18th Annual Short Line Conference in Jax this week; many excellent take-ways. FEC fourth quarter and year-end earnings call. Bear Sterns Ed Wolfe hosts sessions with CP Pres. & CEO Fred Green and Ass’t VP of IR, Janet Weiss. JPM's Tom Wadewitz on the CN strike impact. Car builder tidbits.
Week in Review, 3/2/2007
Why rail stocks are priced right right now. DME loses loan bid. FRA proposes changing HOS rules. Recent Class I and shortline carload traffic summaries. CSX shortline presentations at csx.com -- get 'em while they're hot.
Week in Review, 3/9/2007
Why funding acquisitions trumps funding start-ups. John Giles to head RailAmerica. Details and shortline implications of YTD traffic downturn. Bear Stearns on Class I rail investment opportunities. Fortune names UP "most admired RR" for second consecutive year. CSX and UP remain on Top Ten Value Companies list at The Street.com. New diesel loco emissions regs could be harmful to the health of shortlines.
Week in Review, 3/16/2007
KCS held a well-attended and very informative meeting for analysts and investors at its Kansas City headquarters Mar 13-14.CSX shares spiked Friday ostensibly on rumors that some hedge fund may have “Fortress-eyes” for the railroad. The surcharge dust seems to be settling down; tools for short lines to maximize participation. NS discontinues some fuel surcharges. Carload summary through Week 9.
Week in Review, 3/23/2007
How the Eyeris cost-management system used by KCS can be applied to shortlines. P&W to re-state financials. How rail stock prices relate to analysts' perceptions. California’s Richmond Pacific has stepped up to the emissions plate with its recent low-emissions locomotive project. NS super-sizes McDonalds potato distribution to DC Metro area. a 1923 lesson in labor relations.
Week in Review, 3/30/2007
A pair of cautionary notes from the ASLRRA re upcoming legislation critical to shortlines. Why new money in the form of private equity firms is stalking short line railroads. Norfolk Southern to expand and accelerate its share-buyback program; Wall Street approves. Shares of farming supply companies higher on ethanol boom; mixed blessings for shortlines.Short line carloads through Week 11 (3/17/2007) were off 9% yoy; Class I loads also drift south. FRA okays RRIF loans for Corman, DM&E. FEC, Corman win Railway Age awards. RMI RailConnect shortline carload summary.

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