- KSU's management rejected a takeover bid at $208. I think it can reach $250 over the next 12 to 24 months.
- It is a matter of financial engineering. A stock price of $250 or $208 doesn't make any difference to a potential buyer if buybacks lower the number of shares outstanding.
- So there is financial engineering upside on a railroad stock priced like others that, unlike other railroad stocks, also offers business growth.
- At the bottom of this article, there is a video discussion on investing in railroad stocks and a comparative analysis.
For further details see:
Kansas City Southern Stock Will Outperform Thanks To Buybacks And A Takeover