Union Pacific (UNP) CEO Koraleski Positive on Pipelines, Oil, and Mexico - Cramer
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Union Pacific (NYSE: UNP) is positive on the session following CEO Jack Koraleski speaking with stock savant Jim Cramer last Friday.
Koraleski noted that Union Pacific had no plans to ship oil as recent as five years ago. Now, the company ships about 90 million barrels of crude each year. Unlike a pipeline which runs to one endpoint, rail operators are able to move the cargo anywhere it needs to go. Not only that, but rails are also price-competitive to pipelines.
Despite the comments, Koraleski noted that he's not entirely against pipelines. Someone going to need to transfer the pipe and equipment to where construction is, not to mention repair materials for future maintenance of said pipes.
Outside the U.S., Koraleski is also bullish on Mexican auto production. He noted that Union Pacific is the only major rail able to serve all six gateways from Mexico to the U.S. The company generally ships auto parts south, bringing back completed autos on the return trip.
One down market Koraleski mentioned was agriculture with dry weather cutting down soy and corn crops last year. So far in 2013, Koraleski said the weather has been "cooperating."
Cramer is still bullish on the name and has had it in his portfolio since June 2010. Shares are up about 1 percent Tuesday.
Note: to read more on rail companies, Bloomberg had a nice piece on Kansas City Southern (NYSE: KSU) about two weeks back. Click here for more on the mention.
Koraleski noted that Union Pacific had no plans to ship oil as recent as five years ago. Now, the company ships about 90 million barrels of crude each year. Unlike a pipeline which runs to one endpoint, rail operators are able to move the cargo anywhere it needs to go. Not only that, but rails are also price-competitive to pipelines.
Despite the comments, Koraleski noted that he's not entirely against pipelines. Someone going to need to transfer the pipe and equipment to where construction is, not to mention repair materials for future maintenance of said pipes.
Outside the U.S., Koraleski is also bullish on Mexican auto production. He noted that Union Pacific is the only major rail able to serve all six gateways from Mexico to the U.S. The company generally ships auto parts south, bringing back completed autos on the return trip.
One down market Koraleski mentioned was agriculture with dry weather cutting down soy and corn crops last year. So far in 2013, Koraleski said the weather has been "cooperating."
Cramer is still bullish on the name and has had it in his portfolio since June 2010. Shares are up about 1 percent Tuesday.
Note: to read more on rail companies, Bloomberg had a nice piece on Kansas City Southern (NYSE: KSU) about two weeks back. Click here for more on the mention.
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