As it so often seems, each time I post an update on my Watchlist, the market takes an unexpected twist, and I have to revise my gamplan. Since adding shares of Abbott Laboratories (ABT) and Air Products and Chemicals (APD), I’ve been honing in on: McDonald’s (MCD), IBM (IBM), Genuine Parts (GPC), Coca-Cola (KO), and considering adding more ABT and APD.
Although I still believe the companies mentioned above are starting to become attractively priced, I found an even better deal today. Norfolk Southern (NSC), saw its shares slashed by 7.45% today, after earnings were reported. NSC reported Q3 earnings of $1.24/share, which beat projections by 1 cent, but were 27% lower from Q3 last year. Total operating revenues were down 7% year over year.
One main concern for NSC was that coal shipments were down 16% and revenue from coal shipments were down 17%. This problem, however, is not isolated to just NSC, but also affects other railroad companies. Still, the market is very near-sighted, and once the bad news spreads, the analysts’ downgrade, and the market sells-off.
Here is A Forbe’s article, suggesting that NSC has now been oversold:
As a long term investor, I don’t panic over the short term news. In fact, in many ways, I welcome it. Missed earnings are usually some of the best times to add more shares of quality companies. Since I try to practice what I preach, I added 40 shares of Norfolk Southern (NSC) to my portfolio at $61.68/share.
I put in a limit order early in the morning, so missed scoring the shares at the bottom today. With the market, you never know. Sometimes it dips early morning and then recovers throughout the day. Other times, it just keeps plunging down further and further. Still, I got in at a much better deal than I did the last two times around (this is the third time I’ve purchased NSC in the last two months), so I’m not complaining. Long term, it shouldn’t matter anyway.
With the yearly bonus deposited into my brokerage account, I now have some more ammo to fire. Hopefully even better deals will emerge. As always, best of luck, and happy hunting! Things are getting interesting!