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Kansas City Southern dives after earnings miss

  • Shares of Kansas City Southern (KSU -16.1%) tumble in early action after the company misses estimates with its Q4 report.
  • The railroad operator saw total carload volume increase 2% during Q4 which was the same as rival Union Pacific, but analysts expected more.
Comments (6)
  • Roy Blanchard
    , contributor
    Comments (52) | Send Message
     
    This stinks. I give you a number and ask you to match it. You don't. Was your number too high or is there something structurally wrong with my business? I tend to suspect the latter. What's more, I listened to the call and heard many things to cheer. Like the long-term trends in ops metric, revs, car counts, Mex and Canadian vols and cross-border growth.

     

    I tend to take the fixed income view: if I lend you money, what are the odds I'll get it back? As for KSU, the answer the odds are very good. Witness the upgrade to investment grade and the savings in interest expense. And while we're at it, note loco lease-back program. Locos always run better when you own them.

     

    Disclosure: I own no KSU now but have in the past and may well in the future. Esp with this buying oppty courtesy of the sell-siders.
    24 Jan, 09:53 AM Reply Like
  • James Sands
    , contributor
    Comments (2088) | Send Message
     
    Roy,

     

    This plunge today, definitely merits a close look at the company for entry.
    24 Jan, 10:02 AM Reply Like
  • fuzzymc
    , contributor
    Comments (117) | Send Message
     
    This is the danger of owning individual stocks, miss 1 number or have your CEO say something bad, poof 25 pct haircut!!
    24 Jan, 11:12 AM Reply Like
  • James Sands
    , contributor
    Comments (2088) | Send Message
     
    Sometimes haircuts lead to padded long-term performance. Gotta know whether its a well run business or not.
    24 Jan, 12:00 PM Reply Like
  • dancing duke
    , contributor
    Comments (52) | Send Message
     
    in reality a great yea,r and now the price is back to last early march.Only a skitzoid could coneive such rot in in todays market.
    ksu will soon be back
    TRUST THEM
    24 Jan, 04:55 PM Reply Like
  • tommy train
    , contributor
    Comment (1) | Send Message
     
    I very much like KSU for the very same reason Mr. Buffet bought BNSF. I don't think we will see a Chinese railroad company plan a start up here in the USA!
    26 Jan, 09:16 AM Reply Like
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