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Strategies & Market Trends : Value Investing

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From: Paul Senior3/2/2006 4:50:21 PM
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With a small buy today, I added KSU to my railroad stocks.

I note three aspects with KSU:

1. The price vis-a-vis competitors seems very expensive. Very high price based on metrics that I'm looking at.

2. Although the stock's moved up over the past couple of years, its performance has been relatively less than many other railroad stocks:

finance.yahoo.com

3. KSU has operations that link it to a Mexican port. This gives the possibility and probability (I hope) that KSU can eventually provide an alternate and maybe cheaper/faster shipping route from Asia to US markets than going through congested/expensive (labor) West Coast (USA) ports. This provides the ruling reason for paying a bit more than otherwise for the stock. Here's a relevant news article:

biz.yahoo.com
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