Rebuilding The Rails

Thursday, 14 Feb 2008 | 3:52 PM ET

After decades of neglect, American railroads are spending billions to expand and upgrade their networks.

Should you hop on board?

If you think it’s too late to get on-board with railroad plays, you’re wrong says Guy Adami on CNBC’s Closing Bell. You have not missed this train!


It’s the agriculture story. As our nation produces more crops, especially corn for ethanol, it's the railroads that stand to benefit. In fact Burlington Northern said they expect to see record volumes in agriculture and coal. And Bear Stearns recently increased their price targets on the sector.

Of course, never get on a train without looking, says Adami. In the short term, these stocks are probably due for a pullback. But longer term I think they’re a value considering what their growth will likely be.

Fast Money: Rebuilding the Rails
Fast Money's Guy Adami takes a look at opportunities in the railroad sector.

I most like Burlington Northern (BNI) and CSX Corp. (CSX), he reveals. And also watch Trinity Industries (TRN), Wabtec (WAB), and Greenbrier (GBX) which should benefit as the railroads begin to put money back into their own equipment.

Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to fastmoney@cnbc.com.

  Price   Change %Change


Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report