By Investment Underground:
By Richard Lloyd Evans
US freight railroads had a stellar 2011, and looking out into 2012, there are nothing but roses scattered along the rails of the country. Despite the run-up in railroad stock, there are still some great buys on the rails. In the following article, I will first provide a quick analysis of the railroad industry. Then, I will look at five railroad stocks which prove there is still an opportunity to get in and capitalize on this market.
The key to recent railroad stocks' success was the massive impact of the Great Recession in 2007-2008. Up to that point most railroads were dinosaurs, bloated by inefficient cost structures and hobbled by union contracts which were horribly cost prohibitive and anti-productive. They came with massive debt in the guise of underfunded retirement and medical plan liabilities. The financial meltdown caused everyone to make tough choices. Railroad union commitments
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