Kansas City Southern (NYSE:KSU)
A holding company with domestic & international rail operations in North America that are focused on the growing north/south freight corridor connecting key commercial & industrial markets in the central U.S. with major industrial cities in Mexico.
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Trains have been doing phenomenally well primarily from coal shipments. KSU is unique because of its position to transform the US/Mexico/Central America transportation and shipping infrastructure. This will be a huge play in the next 2 years. It is only now beginning.
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Sole Rail service serving deep water port at Lazaro Cardenas. NAU/SPP Super highway is mostly their rail line. Great revenue growth while paying down debt.
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KSU has exclusive service of Mexico's Lazaro Cardenas, the newest natural deepwater port on the west coast of North America. This port is still under construction, but will be able to service the Super Panamax ships now becoming the standard, and too large pass through the Panama Canal. US ports now in existence are unable to expand quickly enough due to land constraints (LA, Seattle etc) and costs related to servicing these monster ships. Lazarro Cardenas facilities have been under construction for over a year by Hutchison Whampoa one the the largest port operators in the world. Kansas City Southern will have the exclusive trackage to service this port as well as all the largest cities and ports of Mexico. KSU tracks cross into the US at Laredo Texas and will service the Wal-Mart distribution center recenlty constructed near Houston. The KSU tracks extend northward to Kansas City and Ilinois and will service the latest concept in trucking depots located outside of big cities to avoid conflict and congestion. KSU has been called NAFT Rail, but it should also be called the China connection.
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Secured teritory without competition
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long term growth prospects are excellent
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Buy to hold and forget. In five years you will be reading about how those who had the forsight to buy this and stay with it are Warren Buffetts. Not a 10 bagger, but a solid gain without high risks. I still feel this way after 3 years...
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Many positive things happening to improve line of road, lots of growth potential, Especially with newly formed Meridian Speedway LLC
involving Norfolk Southern
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With the opening of a new deep water port just down the coast from SanDiego in the Baha of Mexico and the rail service being provided by Kansas City Southern de Mexico. It stands to reason that with the expantion of container cargo services bottom line profits will follow.
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USA railroad to New Mexico's new deep sea port
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New rail link between Mexico and Canada.
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Kansas City Southern Rail (KSU) seems poised to make a huge splash in freight shipment. After gobbling up large tracks of mexican rail lines, including those servicing some of the largest retail centers in the world, they've also managed to get the largest US/Mexico rail crossing under their control. I think companies will be moving a lot of heavy shipping from the west US coast, where labor unions make doing business a bit more expensive, down into mexico's more than adequate deep water ports. All that heavy freight that would have come into the US through the ports will now be shipped (by rail) through KSUs border crossing, on KSU trains. Combined with increased EPS and solid financials KSU seems ready roll.
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Owns large Mexican port and rail route from Mexico to US
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Great management. Good routes.
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