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No. 3 - Runaway Trains

Railroads haven't been this hot since The Civil War! Well that may be a bit of an exaggeration, but shares of Norfolk Southern (NSC) doubled over the last three years. (In case you’re wondering the company traces its roots back to 1830)

Railroads are the oldest direct play on the economy. Today they are direct plays on the ethanol craze and grain bull market. (And they count Warren Buffet among their backers.)

Norfolk Southern Chief Financial Officer Hank Wolf joins the guys with the lowdown on their success and recent earnings.

Wolf tells the guys that he sees continued growth though volume, and expects the market to get stronger through the year.



Dylan asks how much extra demand is created by ethanol?

It’s becoming more and more important, says Wolf. But the mainstay of Norfolk Southern is coal.

Tim Strazzini asks what are the opportunities for Norfolk Southern going forward.

The greatest opportunity is intermodal transportation, explains Wolf. (Intermodal is the ability to move cargo between trucks or ships and trains without packing and unpacking.)

Guy Adami asks if higher gas prices are benefiting Norfolk-Southern.

Wolf says CSX is more fuel efficient – so higher gas prices favor all the railroads.

Dylan asks Eric Bolling what he thinks of the stock.

Eric replies that the auto and housing industries are still quite soft – and since those sectors transport materials via the rails, he doesn’t think NSC is a buy.

Questions? Comments? fastmoney@cnbc.com

Trader disclosure:
On APR 25, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders. Strazzini Owns (POT), (GSK), (IBM) Bolling Owns (DIS), Gold, Silver, Corn Bolling Is Short Soybeans, Bolling Is Long (AMZN) Options