Remember when you could count on an industry to return you profits?
Man… those were the days, weren’t they?
Things have definitely changed over the past 40 years in the market – and the tech boom of the 1990’s may have been the catalyst to the uncertainty that some of our old school favorites saddle us with today.
The tech boom changed everything – not just Wall Street – but the world…
But sometimes, investors long for the day of the blue chip big boys that were firmly entrenched in an industry we were all-but-certain would return us all kinds of profits.
Well, there IS an old school type of stock that could be about to put all kinds of $$$ in investors pockets…
But you have to move fast! Want to know what it is?
Then keep reading…
When you think of “old school” stocks – what do you think?
Do you think companies like Xerox (XRX), Ford (F) or Standard Oil (now Chevron) (CVX)?
Do you think of bowler hats and handlebar mustaches?
Or are you more of a 1950’s fan with the style and profit opportunities of the Greatest Generation?
Well, if so, you’re on the right… track.
Yes, that’s a pun – because the old school industry and the stock we’re going to be talking about today is one that was the driving engine that build America into a super power.
Did you get it yet?
Yes, were talking about railroads – and how a new play could be about to pop and put money in investors pockets.
Now, you don’t need to LIVE old school to INVEST old school…
You don’t have to spend your days down at the five-and-dime, getting ice cold soft drinks from the soda jerk and getting your news by radio to take a good hard look at railroad stock…
We’re going to bring this old school industry into the 21st Century!
The fact is, there’s a lot of murmuring about some BIG changes in this all-but-forgotten industrial sector…
The kind of changes that wind up with investors walking away with some cold hard cash in their pockets – especially for those that consider acting sooner and not later.
Sure, everybody else may be on the Tesla (TSLA) rocket to the moon…
But it’s going to be those that keep their goals and dreams grounded here on earth that may make the bigger profit over the next few months.
To be honest…
The Gorilla is happy to sink his teeth into a good industrial stock – there’s a lot of meat on those bones – which is good, because even if things go south, there are still a lot of ways for industrials to get us our money back.
So…
What’s the big to do about industrials?
Well, it’s being rumored that the Canadian Pacific Railway (CP) is looking to hitch another box car to its engine – and buying up Kansas City Southern (KSU) for a whopping $25 billion in cash and stock – would be a nice addition to this almost $50 billion juggernaut.
If this deal happens – it would be one of the biggest consolidation plays this industry has ever seen.
I bet even Henry Flagler would be excited about this one…
Because combined, this network would form the first Canada-U.S.-Mexico railroad – something that as far as my research can tell – has never happened!
Now, I say “if the deal happens” because the two companies aren’t completely coupled together just yet (yes, that is a pun, this article if filled with them) – even though both companies’ boards have approved the merger.
Why?
Because U.S. Surface Transportation Board has to allow it – and that may be a tall order – as Canadian rail companies haven’t had the best luck in buying American rail companies – due antitrust concerns.
But that doesn’t mean there isn’t excitement over the prospect..
Canadian Pacific CEO, Keith Creel, commented about the merger, saying “It’s pro-competition. It’s pro-service. It’s a pro for customers, employees in the North American economy!”
However, a deal between these two companies would show a growing confidence in the future of US and Canadian trade relations – and with Biden already killing one Canadian/US deal in the Keystone Pipeline – he may just have to put his weight behind this and throw Justin Trudeau a bone.
Let’s cross our fingers for this one…
Just as every GorillaTrades subscriber does every morning when they check their email for a GT buy alert.
They LOVE our recommendations – and often forgo many of their evening rituals to see if GorillaTrades has put out a recommendation yet.
What excites you in the evening?
If you want something to look forward to – do yourself a favor and consider subscribing today so you can be on board for our next big pick!
It could be just the junction you need to change course from the Land of “Meh” – to the City of Profit!
Here’s hoping you hop on board with us!
“I feel proud I was part of the old school and still around in the new school.” – Peter Crouch
