I want to tell Bigsmoke99 that because of the VAT dipute with Maxican Govt.owes them more than a Biilion dollar ( I mean Biilion)and they have won in every court decesion.And there are many court decesions in favour of TFM.and they (Maxican Govt.)are expected to sell their 20% interest in TFM for about $ 450 millon dollor.Mr.Haverty is a shrewed CEO and he knows how to run co.So it is a good managment.He takes risks but they are good and well thought of for long run.
If you are meaning the Mexico purchase.... I disagree...... The UPRR blew that one big time. If the KCS failed in getting the TFM deal years ago the KCS would be no more.... the $1 Billion plus for the TFM was a steal and it's paid off big time for the KCS..... There's not a lot of growth in US railroads, only Cannibalism (sp? sorry)..... Mexio is the only new BIG territory around and with the KCS controling the TFM and now with their deal with the TEXAS PACIFICO via ALPINE, TX, KCS will have a huge market in Mexico to drive both North bound and South bound traffic. Haverty is not perfect, but everything you see going on now and in the future has been by design for the past 5-6+ years - it's all going to plan (maybe a little behind schedule, but moving forward none-the-less)!!!!
OK OK..... the stock is doing well, but the rise (in my opinion) it's just another knee jerk reaction by the big market players. KCS is a great long term hold stock for now, but the stock will adjust back into the $16 dollar range soon ....... I think KCS is poised for greatness, but it is still going to take some time.... look at the numbers..... Gross revenue is up, but net is still not that great.... They are getting there and Haverty has a way of cutting costs to make things work. New Equipment, New Personal - all very good signs that this company is going to be the work horse of the industry for a very nice "Niche" market (Mexico - KCS has had a great team in place driving the Mexico business, I hope they keep it going!). If the company continues to do well and the stock continues to rise, I think you will have some of the bigger boys (BNSF or CN) come in and offer Haverty an attractive deal, but Haverty has said it before and I will remind everyone again - Haverty wants the KCS to be a stand alone railroad, and not just that small class one that doesn't get any respect. A stronger KCS, a stronger Haverty - who knows what will happen........ maybe the KCS will become the Buyer..........?