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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (23485)	3/2/2006 4:55:09 PM
From: Madharry	Respond to of 78748

You remind me of a reporter i heard on the radio who had written a book about children from mexico who leave home and traverse mexico in an attempt to reunite with their mothers who have found work in the United States. She recounted how these kids ride the sides and tops of these mexican freight trains, which are controlled by bandits. who either take their little possessions or throw them off the train. It sounded pretty grim and i wonder how safe the cargo transported on these trains are.

To: Paul Senior who wrote (23485)	3/2/2006 7:40:43 PM
From: E_K_S	Respond to of 78748

Hi Paul - This is an interesting business proposition for KSU if they can take advantage of their competitive advantage with a port & railway distribution line into the U.S.. It's still an expensive stock but I will watch and see if I can start a position under $20. If Home Land Security places more requirements on the domestic port security (especially with the recent Dubai Port Deal), it may be cheaper to land product in Mexico and then use the rail to bring it into the U.S.. Now even the teamsters want to stop the Dubai deal as they believe they may lose jobs and their high wages (http://www.nbc4.com/news/7398212/detail.html). It may be interesting to see what large companies have manufacturing facilities in Mexico near KSU distribution lines. I think Maytag and Ford have large assembly plants in Mexico but do not know how they distribute their finished product into the U.S. ============================================================== I did add a few more shares of Ford (F) today to my my current holdings. I have my 2/3 position in hand as we get close to a five year low. I hope they can continue their 5% dividend because I am willing to wait for their eventual recovery. I believe their goal to have a hybrid option for 80% of their product line by 2010 will help them with sales growth in the future. EKS

To: Paul Senior who wrote (23485)	3/15/2006 8:23:14 PM
From: Carey Thompson	Read Replies (1) \| Respond to of 78748

Just read your post of KSU. I believe its a fine RR servicing the plains of the USA and beyond. I have done some research and I will share it with you and look forward to corresponding with you on KSU. Pay special attention to 2000. That year the dividend was suspended, the Stillwell financial subsidiary (Janus) was spun off, and there was a reverse split in the common stock. I am a historian so I may have overemphasized the Staggers (RR deregulation) Act information. During 4q2005- KSU and Norfolk Southern agree to Joint Venture. NS will pay $300 mill to upgrade the railway from Meridian MS to Shreveport LA April 1, 2005 - KSU competes the acquistion of the controlling interest in Kansas City Southern de Mexico railway. Jan 1, 2005 - KSU completes the acquisition of the Tex Mex railway. Nov 11, 2005 - The Billings MT Gazette had an informative article on ksu, especially for transporting goods overseas from Asia. Sep 2005 - I read an informative article in the "Rocky Mtn News" reviewing the shortage of rail cars to carry the coal from the western slope of Colorado & Powder River Basin of Wyoming to end markets. The RRs impacted were the Union Pacific and the Burlington Northern Santa Fe. Both railroads stated they are improving their rail lines in the areas, AND experiencing a shortage of railcars that carry the coal to markets in the east and midwest. Tom White of Amer Assoc of Railroads states "The rule of thumb is that for trips of about 750 mi. of longer, particularly if the cargo is heavy, the railroad can move it for at lower cost. Trains are inherently more fuel-effiecient than trucks by a factor of 2 or 3. One train moves cargo equivalent to 280 trucks, but instead of 280 drivers a train's got 2". April 2002 - KSU and BNSF sign a marketing agreement, kind of a joint venture. where each RR uses each other rail lines. In 2002 - KSU sells Wyandotte Garage for a gain of $4.9 mill During 2001 - Canada National RR acquires Wisconsin Central June 2001 - STB issues new rules governing major railroad mergers or consolidations of 2 or more 'class 1' RRs. The new rules increase the burden on on the acquiring RR to demonstrate the transaction is in the public interest. Class 1 - RR w/ $250 mill revs; Class 2 are regional RRs; Class 3 are local RRs Mar 12, 2001 - the TexMex sub buys a 85 mi line from Rosenberg, TX to Victoria TX from Union Pacific for $ 9.2 mill, effectively connecting Laredo to the Gulf of Mexico July 12, 2000 - KSU spins off Stillwell Financial (Berger, Janus, other fin opers) to its shareholders July 2000 - stk does a reverse 1-for-2 split First qtr 2000 - KSU suspends the div on com stk. Late 1999 - BNSF tries to buy Canada Natl RR, and the Surface Trans Board says WHOA - there must be railway competition in No Amer these consolidations are going overboard. June 1999 - Canada Natl RR buys Illinois Central RR - further consolidating No Amer Railways During 1998 - KSU buys concesssion for $9.5 to rebuild the Panana Canal Railway During 1998 - KSU gets haulage rts to Omaha, Lincoln NE, & Council Bluffs IQ as result of UP buying the Missouri-Kansas-Texas Railroad Dec 1997 - KSU and Norfolk Southern enter 3 yr marketing agreement giving co the right to service the railroad from Dallas, TX to Meridian, MS During 1997 - Norfolk So & CSX buy the assets of Conrail - furthering RR consolidation in No Amer During 1997 - KSU buys 37% of Grupo TFM (Mexico) for $298 mill During 1996 - KSU authorizes a 9 mill shs buyback program During 1995 - KSU authorizes a 24 mill shs buyback program During 1995 - Union Pacific and Chicago & NW RR merge - furthering RR consolidation in No Amer During 1995 - Burlington Northern and Sante Fe RRs merge - starting RR consolidation in No Amer During 1995 - KSU buys 49% of Tex Mex of Laredo for $23 mill During 1980 the RR industry changes drastically because of the Staggers Act which derulated the industry and let to market base competition in RRs. In addtion trucks remained a very strong competitor. The railroads were forced to adapt or die. During 1887 Arthur Stillwell starts a north south railway that become the Kansas City RR, he wants to get midwest food stuffs to the Gulf of Mexico ports. For export around the world.