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Stock Market & Financial Investment News

News Breaks
February 27, 2013
11:52 EDTKSUKansas City Southern jumps after report of crude terminal deal
Train operator Kansas City Southern (KSU) is climbing after Credit Suisse analyst Allison Landry wrote in a note to investors earlier today that the company has said it's conducting "very serious negotiations" with an energy company about developing a crude oil terminal in Port Arthur, Texas. The facility would handle five trains per day and become a major destination point for heavy crude from Canada, the analyst wrote. As a result of this developing deal, the company's revenue from transporting crude oil will be significantly higher than expected, the analyst believes. She maintained an Outperform rating on the stock. Meanwhile, Wells Fargo analyst Anthony Gallo wrote that the Port Arthur location is favorable because of its proximity to chemical and crude oil processing markets. However, the company would likely obtain significantly less than $3,000 per train car of crude, which is the amount that other railroad companies have received, the analyst wrote. Nevertheless, the construction of a crude oil terminal in Port Arthur would be "very beneficial" to Kansas City Southern, wrote Gallo, who maintained an Outperform rating on the stock. In late morning trading, Kansas City Southern jumped $9, or 9%, to $107.
News For KSU From The Last 14 Days
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November 20, 2015
07:30 EDTKSUUBS to hold a conference
Industrials & Transportation Conference is being held in Boca Raton, FL on November 18-20 with webcasted company presentations to begin on November 20 at 8 am; not all company presentations may be webcasted. Webcast Link
November 17, 2015
17:32 EDTKSUNorfolk Southern spikes after Canadian Pacific proposes merger
Shares of railroad operator Norfolk Southern (NSC) are spiking in the after-hours after rival Canadian Pacific (CP) announced that it has sent an offer letter to Norfolk Southern proposing a business combination. WHAT'S NEW: After the close of trading on Tuesday, Canadian Pacific proposed a business combination with Norfolk Southern "that would create a transcontinental railroad with the scale and reach to deliver improved levels of service to customers and communities while enhancing competition and creating significant shareholder value." Canadian Pacific noted that the proposal reflects a "sizable premium in cash and stock offered to NS shareholders." The combined company would have a potential for faster earnings growth than either of the companies independently, CP noted, while offering unparalleled customer service and competitive rates to shippers." The combined company would innovate a new approach to terminal access that would allow another carrier to operate from a point of connection in the event the combined company failed to provide adequate service or competitive rates. The combination of NS and CP would provide a solution to "bottleneck pricing" and alleviate congestion in Chicago by channeling rail traffic away from Chicago. WHAT'S NOTABLE: According to a Globe and Mail report from earlier Tuesday, Keith Creel the COO of Canadian Pacific, who was speaking at a transportation conference, said rail mergers are inevitable but the executive "refused" to confirm past reports that the railroad operator was in talks to acquire rival Norfolk Southern. ANALYST VIEW: ON November 12, research firm BB&T said it believes there are many scenarios in which a merger between Canadian Pacific and Norfolk Southern would benefit both companies. The firm said that Norfolk Southern shareholders would get a 20%-30% premium above the stock's current level, while Canadian Pacific's potential revenue growth issues would be solved and its 2018 EPS would be boosted by 20% plus. PRICE ACTION: Shares of Norfolk Southern are up 6.9% to $93.00, while Canadian Pacific shares are unchanged. OTHERS: Publicly traded companies in the space include CSX (CSX), Canadian National (CNI), Genesee & Wyoming (GWR), Kansas City Southern (KSU) and Union Pacific (UNP).

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