Quick Win by the Algorithm: CSX’s Unexpected Offer from Competitor

Quick Win by the Algorithm

On January 8, 2017, the I Know First algorithm had predicted a bullish forecast for CSX Corporation, Inc. (CSX). CSX had a signal of 15.22 and a predictability of 0.38. In accordance with the algorithm, the company reported long-position capital gains of 18.15% experiencing a quick win by the algorithm.

Quick Win by the Algorithm

CSX Corporation Inc. is one of the nation’s leading rail transportation suppliers. They serve agricultural, industrial, energy, construction, and consumer markets with traditional rail-based services and solutions and additionally the transport of intermodal containers. The Jacksonville, Florida based company covers over 21,000 miles of tracks in 23 states, as well as Washington D.C., and the Canadian provinces of Quebec and Ontario. With access to more than 70 lake, river, and ocean port terminals along the eastern United States and alliances to other western railroads, CSX links major population centers together. The company has had a significant impact advancing the nation’s economic and industrial development for 190 years.

Quick Win by the AlgorithmOn January 17, 2017, CSX Corporation Inc. announced their fourth quarter earnings. The transportation company faced the obstacle of low commodity prices, this includes a 21% decline in the coal business which is equivalent to a loss in revenue for CSX of $470 million. Though, no more than two days later, CSX spiked up 23.4% as the S&P 500 fell 0.4%. Hunter Harrison, CEO of one of CSX’s biggest competitors, Canadian Pacific (CP), has renounced his position in the company with the tendency to apply for a position at CSX. In an unexpected turn of events, Mr. Harrison claims that he will seek to work with an active investor to reach a senior position in his rival’s company. After this news broke out, CSX’s market value increased by $6.8 billion, implying the positive turnout CSX could generate with the addition of the CEO. Hunter Harrison has been known to transform slow railroads into leaders and been the reason for major mergers within Canadian Pacific Railway Ltd.

This bullish forecast on CSX was sent to current I Know First subscribers on January 08, 2017

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.