The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith and software developer Chris Bledsoe discuss topics across the investing world.
In today's edition, Chris and Austin discuss the macro trend of sharply lower coal shipments in the railroad industry. Austin sees two main causes. First, we are coming off an unseasonably warm winter which reduces coal demand. Second, natural gas, an alternative to coal, continues to be incredibly cheap, which has depressed the demand for coal. Because coal makes up a large percentage of railroad companies' volumes, this has negative bottom line implications. Austin shares his thoughts in the video below.
If you're looking for a more exciting play than railroads, I suggest you read our special free report: "The Motley Fool's Top Stock for 2012." In it you'll learn about an emerging market retailer that's still flying under Wall-Street's radar, but has a huge growth story ahead of it. Click here to download it now
At the time thisarticle was published Austin Smith has no positions in the stocks mentioned above. Chris Bledsoe has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above.Motley Fool newsletter services recommendGenesee & Wyoming. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.