Transportation
UBS Downgrade Derails Union Pacific
UBS noted in its research report that the rail industry has outperformed the S&P by 10% since Buffet's acquisition was announced and, in two previous examples of major Buffet investments in rails, once enthusiasm wore off, stocks in the sector quickly gave back half of their gains.
For example, in April 2007 Buffet made his initial 11% investment in Burlington Northern. Rail stocks proceeded to outperform the S&P by 9%, before giving back 4% just as quickly. In October 2007, Buffet took his Burlington stake up to 15%, sending stocks across the sector up 4%, which was followed just as surely by a 2% drop. Union Pacific has been tagged by UBS as the most expensive stock in the rail group, precipitating the downgrade. -- Reported by Eric Rosenbaum in New York Follow TheStreet.com on Twitter and become a fan on Facebook.TheStreet Premium Services
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn More
OptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn More
Real Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn More
Stocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn MoreTo begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note |
|
|---|---|---|---|---|
| 12,393.45 | 1,310.33 | 2,827.34 | 14.47 |
Oil *
98.65
|
|
DOWN
26.41 |
DOWN
2.99 |
DOWN
10.02 |
DOWN
1.34 |
10 Yr
1.45%
SPDR Gold
151.62
|
|
-0.21%
|
-0.23%
|
-0.35%
|
-8.48%
|
Data delayed 20 minutes |
Connect with TheStreet