KCS stock is soaring

Discussion related to the past and present operations of Kansas City Southern Lines, including affiliates Texas Mexican Railway, Grupo Transportation Ferroviaria Mexicana (TFM), and Panama Canal Railway Co. Official web site can be found here: KCSOUTHERN.COM.

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KCS stock is soaring

Postby Safetee » Wed Feb 27, 2013 10:55 am

Anybody have a clue why KCS stock is flying so high???
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Re: KCS stock is soaring

Postby JayBee » Fri Mar 01, 2013 9:22 am

Credit Suisse reported that KCS is in negotiations with an unnamed customer who would build a Crude by Rail unloading terminal on KCS land in Port Arthur, TX. The facility would be designed to handle 5 unit trains per day making it the largest such facility in the US. This facility would handle Heavy Canadian Crude, and if this was interchanged to KCS at Kansas City, MO would increase KCS traffic by 8%. If some or all of it was interchanged at Jackson, MS the effect would be somewhat less, but still significant.
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Re: KCS stock is soaring

Postby Safetee » Fri Mar 01, 2013 9:42 am

Wow! thanks for the info. I live in new england, and domestic oil is huge here right now for Pan Am Southern. Currently up to 5 100 car trains a week. Naturally I am glad that all the rail lines are doing well with all this oil. And i'm sure that the oil producers are doing ok too. I just wish that the folks who heat with heating oil up here in the nawth could get a piece of the gushing domestic action thru lower prices. I guess we get to get that piece by holding onto our KCS stock.
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Re: KCS stock is soaring

Postby Gilbert B Norman » Fri Sep 04, 2015 12:55 pm

While at the time Mr. Safetee originated this topic, the title was quite correct. Unfortunately, that is presently no longer the case:

http://www.msn.com/en-us/money/stockdet ... orm=PRFIHQ

But I made some nice pocket change on my KSU position bought during Jan '11 and sold May '15, with an annualized return of 30.6%. Wish I could say the same of all the securities in my portfolio.

If not for the political instability of Mexico at present, the Port of Lazaro Cardenas could be big-time; post-PANAMAX notwithstanding. KCS-M is the only road to serve that port.
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Re: KCS stock is "Hurting"

Postby Gilbert B Norman » Mon Jan 23, 2017 10:30 am

There was a short article in Saturday's Journal that presented a "not so optimistic" outlook for KCS. The Trump administration's sentiments regarding trade are not helpful to a road that has staked it's entire business plan on such:

http://www.wsj.com/articles/kansas-city ... 1484920285

Fair Use:

Kansas City Southern, which posted flat revenue and sagging profit even as the wider railroad sector shows glimmers of a turnaround, warned of risks to the U.S. and Mexican economies if negotiations about a cross-border trade deal aren’t handled carefully....The company, which operates a railroad between the two countries, has seen its stock battered since President Donald Trump’s election, over the prospects of a renegotiated North American Free Trade Agreement that could hurt its business.


While at this time and regardless of who has the tenancy at 1600, the domestic energy industry is starting to recover. The Sheiks have come to their senses regarding a ruinous price war that no one would win. While rail's role in handling oil will be reduced, it will not be extinct.

But for a road with a NAFTA business plan, the isolationist/protectionist rumblings from the new Administration are indeed ominous. While I have noted throughout this Forum the potential benefits to KCS should the Port of Lazaro Cardenas be developed, any such thoughts are now "off the table" - and likely so for the next eight years.

Finally, and as an addendum, TRAINS Newswire has also reported this story:

http://trn.trains.com/news/news-wire/20 ... s-earnings
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Re: KCS stock is soaring

Postby CPF363 » Sat Jan 28, 2017 8:50 pm

Gilbert B Norman wrote:There was a short article in Saturday's Journal that presented a "not so optimistic" outlook for KCS.

Could this be a good opportunity for the CP to work a deal to merge with KCS?
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Re: KCS stock is soaring

Postby Gilbert B Norman » Sat Jan 28, 2017 9:52 pm

If the Mexican properties were divested, then a KCS-CP merger would give CP US operations parity with the CN.

Our Dear Leader may just bring such a divestiture about. Lest we forget, the Mexican government has a substantial equity interest in both the KCS-M and UP (Ferromex) as well.
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