UNP, Union Pacific Corporation

unp 2012

This railway goes back 150 years. It was listed as a stock back in 1870. It’ performance beats that of either CNR or CP, at least in terms of stock appreciation. The operation ratio has dropped from about 80 a couple of years go to 70 in the first quarter of this year. Profits were up impressive 39% y-o-y. Given the stocks tripling since the recent lows we would exit or stand aside. The count may not be perfectly correct but reversion to the mean, or the potential for that to happen, is a good enough reason.