Merril Lynch has a research note on how this would affect competition if Dm&e received funding. It showed a projection for Dm&e. It was very positive and lucrative for Dm&e. FSTR is worth what it is trading for without any premium for Dm&e. It has the right business mix at the right time with a lot of Capex behind it.
I agree with your comments about Foster's stength but didn't see anything in the Merrill Lynch story that showed much understanding of DME route, need to hand off, competition crunches. As Bilboba noted, Morgan Stanley will play down the project and Merrill Lynch will hype it. Merrill Lynch didn't get into the mills competition DME will face from other railroads and the need to hand off coal trains when their route ceases. I thought it was a superficial piece. At least James Valentine at Morgan Stanley threw a few figures around. Have read two documents now that point to the 125-135 million tons a year figure.