Rail Traffic Rebounds Hard

the interesting things about the rebound in rail traffic is that it typically takes about 4 weeks from trough to recovery to previous year levels. In 2012 it has taken only two. While a steep recover y in rail traffic from the Christmas weeks lows is normal, it does not usually slingshot so hard. Significant strength is in the auto segment where shipments rose 50% over the previous week. Metals (think manufacturing) also rose over 10% to the upper end of the 2011 range.

When we couple this with yesterday’s temp employment report, I still maintain Q1 2012 is shaping up better than most predicted a couple weeks ago. I expect to see upwards revisions to GDP numbers coming in over the next few weeks.

Here is the chart:

Mangrove Partners Narrowly Avoids “Extinction-Level Event”

Nathaniel August's Mangrove Partners is having a rough 2020. According to a copy of the hedge fund's August update, a copy of which ValueWalk has been able to review, for the year to August 5, Mangrove Funds have returned -38%. Over the trailing 12-month period, the funds returned -44%. The S&P 500 produced a positive Read More


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Todd Sullivan is a Massachusetts-based value investor and a General Partner in Rand Strategic Partners. He looks for investments he believes are selling for a discount to their intrinsic value given their current situation and future prospects. He holds them until that value is realized or the fundamentals change in a way that no longer support his thesis. His blog features his various ideas and commentary and he updates readers on their progress in a timely fashion. His commentary has been seen in the online versions of the Wall St. Journal, New York Times, CNN Money, Business Week, Crain’s NY, Kiplingers and other publications. He has also appeared on Fox Business News & Fox News and is a RealMoney.com contributor. His commentary on Starbucks during 2008 was recently quoted by its Founder Howard Schultz in his recent book “Onward”. In 2011 he was asked to present an investment idea at Bill Ackman’s “Harbor Investment Conference”.