Bob Lang (TheStreet)

Bob Lang (TheStreet) by The Financial Exchange


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

God for stock Dawkins Bob blank from the street easier to talk about a couple railroad companies with those involved thank you for joining us. Hey good morning bearing chuck nice to be repeated. Absolutely it's good to have you Bob let's talk about these railroads here. Are you bullish or bearish on the sector in general. Well all Packers early strong. Lately. Actually. Or for other human eat eat eat eat eat eat dark that really shot up. From their lows on middle of August and there's but there's a couple of others that are really quite. And as well as unit is one of them being via back. Which I had been deep and earning it you know it a big shot an air. Earnings outlook. And not too optimistic. The recorders at and dock to fumble in July. But it made and I double bottom went and it is bullish that the outer outer pulp. Hosting a couple of other all matter the all star which is well ultimately I. Couple bullish and it it. Garrett tiny bit gay but I think it what this dock at a tree that you eat three get through that area it being that gap which it added July. Are right there and it is back. Evaluations overall on these companies looking right now. You know I don't think the valuation. Battered all lap up the rail. There were we talked about the tactic they're. They were there were curing a lot of oil and not curing all that much. Others and energy maybe call it Turk thing. But it seems like being that turn around a little bit in. There they act. A possibility that they're going to be their number I think a lot of it and number for the coming quarter 81 certainly. The hurricanes probably happening it it would. I think it was a really good possibility that these guys that had been members big time and raised guidance it. One of the things that we've been seeing over the last 68 months now. Is an increase in the amount of oil being produced by the US and or pipeline capacity hasn't necessarily kept up there. It is there any additional freight it's going through on energy sector that's helping to keep things afloat. Yeah I I I I agree with that there is aptly the more. Air. Anymore load cargo that he'd. Rails again is going to be more profit. And you know certainly the right well it did inner area and a 4046. To eat super her for. Quite a few months here now and I'm you know that the the producers here in the United States there aren't giving up there are continuing. To produce more more crude added that the case the rails are you hear that now. And they're gonna they're certainly gonna prop and hit it the other what we're we're at our back. Noticed the thing is ready get ready to opt out break out and I'd. Speaking under Saturday and they do a lot of very. Material that commodity swap. Good Bob thank you very much for the time. We will get over the soon Bob that is Bobble playing from the street in the tech stickers on those companies Kansas City Southern has the ticker K as Yoon and CSX corporation as the ticker. CS acts but when it happens though if you get. A congress that is more inclined to pass a lot of pipeline bill's right you all the sudden you have. You know of a rapidly expanding network of oil and natural gas pipelines. And believe that hurts the railroad industry should have goods being trans yup or even people. But if you took out the energy it or big chunk of the energy that's being transported. Let's that's gonna hit their earnings. It it you would imagine it would mean typically depends on the railroad but oil and gas transportation typically makes a between about 1020%. On a lot of these rail lines. So it definitely is something that would affect them it's not something that would cause them to drastically Alter their business but it could affect profitability as they retool for years to what about robotics how does that impact that industry was thinking about that the self driving trucks in and did it does that become. Less expensive I can't believe it would. But you know what I don't think it's a large enough scale in the next five years the matter anyway is not in five years that you think about if your transfer up transporting something from Los Angeles to Boston and you don't want to use a rail to do that. But if your transfer transporting something from New York to Boston on musher rails going to be the cheapest way to do. Is today I'm not sure I don't tell extra short short distance costs like that it if it leads you still see a lot of industrial transportation on the rail system now Betty it. I think. In the in the more populated regions he becomes less efficient. Just. Because of the the the density. They've market right now the Dow is down twelve points. And then checked on well it was over fifty dollars a barrel yesterday closed the fifty dollar bounce under the gun. Oil is trading folks oil trading at fifty dollars and 62 cents a barrel that's a surprise to many. You've been listening to the first hour of the financial exchange with Barry and John.