-- Punished by the market in 2000, Norfolk Southern and other railroad stocks may be reaching the bottom-out point and a turnaround could happen this year, according to a recent Merrill Lynch report.
The report cited three events that could signal better times for the industry: a severe dip in a key manufacturing index, the Federal Reserve's 50-basis-point interest rate cut and an energy shortage.
On the surface, the events seem to indicate economic hard times, but for the railroad stocks, they could indicate a buying opportunity.
Actually Union Pacific (UNP) and Burlington Northern Santa Fe (BNI) did ok during 2000. Just recently Union Pacific hit a 52-week high price, around $50.