It’s been a long time since trains used coal to power their engines across America. But the coal and railroad linkage is still incredibly strong – and not just by railway enthusiasts. We ship a ton of coal by rail. Historically, that’s been a huge money maker for many railroads. However, in recent years, it’s been a huge derailment in earnings at several of the railroads.
And CSX (CSX ) has gotten the brunt of it.
Nevertheless, one man’s trash is another man’s treasure. And CSX could be a treasure among the railroads. Things at the railroad continue to improve and coal is becoming less of a factor in its bottom line.
At the end of the day, investors have an opportunity to own one of the best infrastructure plays in North America at perhaps a cheap discount to the rest of the industry.
