-------------------- “Money itself isn't lost or made, it's simply transferred from one perception to another." Posts: 540 | Registered: Mar 2006
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One of my best long-term stocks has been KSU, Kansas City Southern, I used to work on the RR so when I saw it starting up I picked up 150 shares at 10.25 back in 2002. Sold 50 shares recently when it went over 30 to cover my initial investment. I plan on holding the 100 shares left forever. Yahoo's summary,
Kansas City Southern, through its subsidiaries, provides domestic and international rail transportation services in the United States and Mexico. It operates north/south rail route among Kansas City, Missouri, and various key ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi, and Texas in the Midwest and southeast regions of the United States. The company also operates direct rail passageway between Mexico City and Laredo in Texas, serving various Mexico?s industrial cities and 3 of its shipping ports; and 157-mile rail line from Laredo to the port city of Corpus Christi, Texas. In addition, it holds a concession to operate a 47-mile coast-to-coast railroad located adjacent to the Panama Canal, as well as operates commuter and tourist railway services. Kansas City Southern serves customers conducting business in various industries, including electric-generating utilities, chemical and petroleum products, forest products and metals, agriculture and mineral products, automotive products, and intermodal transportation. The company was founded in 1962 as Kansas City Southern Industries, Inc. and changed its name to Kansas City Southern in 2002. Kansas City Southern is based in Kansas City, Missouri.
Recent news of spending on a new deep water port in Mexico sounded good because it was always there plan to take Asian shipping away from West coast ports,
MEXICO CITY (AP) -- The Mexican arm of U.S.-based railroad operator Kansas City Southern said it plans to invest US$380 million (euro290 million) on equipment and infrastructure in Mexico. Kansas City Southern de Mexico said this year it will lease 90 new locomotives valued at US$190 million (euro145 million), spend about US$103 million (euro80 million) to upgrade its infrastructure in seven states, and lease US$7 million (euro5.4 million) in new railcars and maintenance equipment, according to a news release issued Monday.
Separately, the company said it will invest US$80 million (euro60 million) to build a new intermodal container-handling terminal in the Mexican port of Lazaro Cardenas.
"With this new intermodal terminal, the port of Lazaro Cardenas will stand out as one of the most important logistics centers in the world, and a more attractive Pacific port for exporters," said Jose Zozaya, president of the company.
Recent Financial 10-k,
2006 Financial Overview.
The Company achieved consolidated net income of $108.9 million in 2006, as compared to net income of $100.9 million in 2005. The 2005 net income includes a non-recurring gain of $131.9 million related to the VAT/Put settlement. Excluding this non recurring item, net income increased $139.9 million over the prior year.
Operating income increased $242 million in 2006 to $304.3 million as compared to $62.3 million in 2005. The increase in operating income was driven primarily by increased revenues during the year. The Company achieved record revenues of $1,659.7 million in 2006, which was a 23% increase over revenues of $1,352 million in 2005. Revenue in 2006 included a full year of consolidated results. The revenue increase was primarily driven by price increases, new and expanding business in both the U.S. and Mexico, and by the continued integration of KCSM operations in the consolidated results. Revenue growth in 2006 was 9% over 2005, including pro forma KCSM revenue for the full year in 2005.
Cash flows from operations increased to $267.5 million in 2006 compared with $178.8 million in 2005, an increase of $88.7 million. Capital expenditures are a significant use of cash flows annually due to the capital intensive nature of railroad operations. Cash used for capital expenditures in 2006 was $241.8 million as compared to $275.7 million in 2005.
Because it is a Railroad and not a glamouress stock I hardly ever see KSU mentioned anywhere. I do not know what a good current buy-in point would be but I thought that the Company, its long-term chart, and its potential for future growth fit the title of a winner. Atleast it has been for me.
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