Should You Be Worried About This Coal Trend?

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

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 recommend Genesee & Wyoming. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1862924, ~/Articles/ArticleHandler.aspx, 10/20/2016 5:40:22 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,162.35 -40.27 -0.22%
S&P 500 2,141.34 -2.95 -0.14%
NASD 5,241.83 -4.58 -0.09%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/20/2016 4:00 PM
CSX $30.34 Down -0.73 -2.35%
CSX CAPS Rating: *****
GWR $69.40 Up +0.37 +0.54%
Genesee and Wyomin… CAPS Rating: ****
NSC $93.13 Down -2.51 -2.62%
Norfolk Southern CAPS Rating: *****
UNP $90.64 Down -6.48 -6.67%
Union Pacific CAPS Rating: *****