Locator: 48767RAILROADS.
Locator: 48710CSX.
Updates
August 1, 2025: railroad stocks could fare wells as UNP / NSC merge. Picking winners. Barron's.
Later, 10: 21 a.m. CT: link here.
Original Post
The Cramer hour.
Leads with UNP and NSC: first American transcontinental railroad in modern era. And ever in the history of the US.
NSC: being offered $320 / share to be acquired by UNP; currently trading at $286. $85 billion deal. NSC dropped to $275 by the end of the week, August 1, 2025.
FTC:
- three Republicans
- one Democrat
- one vacant seat
- Trump will appoint a Republican to fill that vacant seat; to be named in December, 2025
- needs to be fact-checked: CNBC is reporting something different (but at end of day, makes no difference)
Thoughts:
- CSX
- if FTC approves one transcontinental railroad, needs to approve both (if BRK/BNSF goes after CSX)
- UNP - NSC will be a two-year process; most of that time selling it to the public, unions, shareholders;
- has Warren Buffett been building a cash position to make one last huge purchase?
- I don't think there's any way Buffett would let arch competitor UNP have the only transcontinental railroad
- Buffett's
been very, very quiet, but he continues to see assets and no big
purchases announced as far as I know -- disclaimer: this is not an
investment site.
Back of the envelope, CSX:
- 320 / 268 = x / 36
- x = $43 / share
- 67 / x = 36 / 43
- x = $80 billion
Everything fits.
The big, big, big deal: Trump leaves office having "built" two transcontinental railroads.
The "re-industrialization" of America.
Think about all the story lines.
