The Genius Guide to Value Investing

CSX – This railroad is a classic value stock. Trading in the high 20’s today we’ve been picking it up when it ranges between 19 and 21. This railroad got its act together during the rail renaissance. They haven’t returned to 2004 load levels yet, but they are well on their way back, even with a few road bumps along the way. We expect the economy to improve gradually over the next 3-4 years and with it, loads will go up on the railroad.  It pays a 2.5% dividend on a big stable company that has assets that are virtually impossible to replace or compete with in their market. CSX moves a lot of coal, which just took a hammering this morning on the idea that Mr. Obama will be involved in more green energy going forward, but ignores the huge overseas buys of coal that will fire up once China goes back into full gear and coal demand world-wide picks up.  That, and CSX is not as tied to coal as they were decades ago. Morningstar has it as a 5-Star at this price. BUY