Hey Wayne,
In seeking the Federal Grant, NYCH proposes to spend $3.25 meg in Brooklyn. Of that they would contribute $650,000 and the Feds $2.6 meg. They also propose to spend $1.5 meg in New Jersey. Of that they would contribute $300,000 and the Feds $1.2 meg. They may have the $950,000 tucked away somewhere, left over from the private placement last year. (I forget the details $2.5 or $1.75 in December or January.) However, given the availability of the grant money, my opinion is they would have little trouble borrowing that much from their local branch banker since they say they have no debt now.
In observing their "wish list" it is apparent the money is destined for infrastructure rehabilitation and motive power. This would allow them to increase their through-put, a critical factor in building profit.
However, it still would remain for them to gain new rail business, an "iffy" proposition on the east side of the Hudson, unless Guliani and the Port Authority mandate it. An interesting research project would be to see where other parts of the grant will be spent to benefit rail freight deliveries on the east side.
The earnings of this company will stay flat or sky rocket. That's what speculation is all about and why we put our hard earned money at risk.
Glad to see you are still thoughtful and positive.
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