Today is November 15, 2019 and Canadian Pacific Railroad recovered in accordance with my railroad fund investment model to $241.47 per share. The value investing model automatically sold at $241.47 and the price per share continued to climb to $241.86 when the market closed at 4 PM. This sale generated a 9.31% return on the investment over 27 days. Annualized return is > 100%.
With stock investing, one of the valuation ratios used is the price to book ratio. It identifies the spread between book value and market value for a share of stock. As the spread increases the ratio increases. A good example is Coca-Cola. Its price to book ratio hovers in the 11 range. Coca-Cola is a Dow Jones Industrial top 30 stock.
Railroad stocks are solid and steady investments. There is limited downside risk and adequate historical data to illustrate buy and sell points for an investor. If properly applied, an investor should earn yields of 18 to 30% year on year. Learn how to develop the investment model for this particular industry.
The transportation sector of the United States economy is comprised of nine industrial groups. One particular group moves more volume of tonnage based on ton miles than any other form of transportation – Railroads. In accordance with the Federal Department of Transportation, railroads move 39.5% of all freight in the US (based on ton miles which is the length freight travels). It’s a $60 Billion industry with over 140,000 miles of track. It is dominated by seven major carriers (referred to as Class I Railways).
The first time I used QuickBooks, it was the DOS version. That was over 20 years ago. Today, there are a multitude of versions for QuickBooks. QuickBooks Online doesn’t measure up to Intuit’s Enterprise versions. It isn’t even close. There are many issues the Online version has and thus the end reporting function is limited. However, there are a few interesting advantages. This accountant’s review helps the reader to understand the advantages and issues the Online version has.
‘Billings in excess’ is a construction industry financial term referring to the dollar value of charges to customers in excess of the costs and profits earned to date. It is reported on the balance sheet in the current liabilities section. It is in effect, the dollar value the contractor owes back to the customer for incomplete work.