Category Archives: Norfolk Southern

Are you taking more risk than you should?

 

We often take risks without knowing it.  There are some risks that are well known; things like texting while driving or not fastening your seat belt.  But there are other risks that are less well publicized and that can hurt you.

As financial professionals we often meet people who are not aware of the financial risks they are taking.  While there are countless books written about investing, most people don’t bother studying the subject.  As a result, they get their information from articles in the press, advertising, or chatting with their friends.

Many people have told us they are “conservative” investors and then show us investments that have sky-high risks.  This is because investment risks are either hiding in the fine print or not provided at all.  No one tells you how much risk you are taking when you buy a stock, even of a major company like General Electric.  GE is a huge, diversified global company, yet lost 90% of its value between 2000 and 2009.  Norfolk Southern is another popular stock in this area.  Do you know its “risk number?”   You may be surprised.

We have analytical tools that can accurately quantify your risk tolerance and give you your personal “Risk Number.”  We can then measure the risk you are taking with your investments.  They should be similar.  If not, you may find yourself unpleasantly surprised if the investment you thought was “safe” loses its value because you took too much risk.

We have no objection to daredevils who know the risk they are taking by jumping over the Grand Canyon on a motorcycle.  But we would caution the weekend cyclist not to try the same thing.  Contact us to find your personal “Risk Number” and then determine how much risk there is in your portfolio.

 

 

 

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Norfolk Southern beats the street

From the AP:

NORFOLK, Va. (AP) _ Norfolk Southern Corp. (NSC) on Thursday reported first-quarter earnings of $387 million.

On a per-share basis, the Norfolk, Virginia-based company said it had profit of $1.29.

The results beat Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of 97 cents per share.

The railroad posted revenue of $2.42 billion in the period, also surpassing Street forecasts. Three analysts surveyed by Zacks expected $2.4 billion.

Norfolk Southern shares have decreased slightly more than 2 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen slightly more than 2 percent. In the final minutes of trading on Thursday, shares hit $82.63, a decline of 19 percent in the last 12 months.

 

NSC shares rose 4.8% in after-hours trading.

 

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