Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of RailAmerica
So what: The company bought Marquette Rail for $40 million in a deal that will add 126 miles of track. It also spent $18 million to buy a majority of Wellsboro and Corning Railroad, as well as Industrial Waste Group. The Myles family will retain 30% of these companies and keep leadership roles.
Now what: The track additions add to the company's presence in energy exploration in the Marcellus shale, as well as in chemical, pulp and paper, and non-metallics industries. The deals also add to the company's 7,400 miles of track in the U.S. and Canada. I think the move is well overdue, considering the company's market cap is up $111 million today alone.
Interested in more info on RailAmerica? Add it to your watchlist by clicking here.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
The Motley Fool owns shares of RailAmerica. 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.