Jim Cramer Weighs in on CSX and Railroad Mergers

CSX Corporation (NASDAQ:CSX) is one of the stocks Jim Cramer picked for his fantasy stock portfolio. Cramer said that he sees strength in the company under Joe Hinrichs, as he remarked:

“Finally, let’s round out our team with a kicker. This time, I’m taking a trendy pick, the Jacksonville Jaguars kicker Cam Little… How about CSX, the railroad company? I’m not saying this because CSX is based in Jacksonville, but because the company’s widely considered to be in play. The merger-friendly Trump administration looks ready to approve transcontinental railroad deals.

Union Pacific, already trying to buy Norfolk Southern. And now many speculate that CSX could be doing the same thing with Canadian Pacific or Berkshire Hathaway’s Burlington Northern. Now, we know there’s an activist shareholder pushing for some kind of deal, which would be like a 70-yard field goal as far as I’m concerned, for CSX shareholders. To be sure, I like CSX because I think Joe Hinrichs is running a great railroad, alright? Anything take-over related, icing on the cake.”

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CSX Corporation (NASDAQ:CSX) provides rail-based freight and intermodal transportation, moving goods such as chemicals, agricultural products, coal, and manufactured items.

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Disclosure: None. This article is originally published at Insider Monkey.