The site where students compete, learn, and make money Tuesday, October 7, 2008
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crimsonba's Stock Forecast for KANSAS CITY SOUTH (KSU)

Submitted by crimsonba on Fri, 06/13/2008 - 15:12.

Stock

KANSAS CITY SOUTH (ksu)

Target

From $47.05 to $55.00

Target Date

1/1/2009
Hit target on: July 31, 2008

Current Price

$34.57
Market Outlook: Not given
Top 3 Stocks: Not given
College: Harvard University

Authority:
7.45 (?)

Thesis:

The railroads story is for real. There are a ton of great plays in this sector, including BNI and UNP, but I like KSU primarily because of its exposure to Mexican rail traffic, which should help drive growth. Yes increasing input costs will effect the RRs too, but this stuff has to get transported somehow and the railroads will increasingly become the preferred method for doing so. Nice little income on most of these stocks as well...