Friday, January 27, 2017


One of the great rail companies in American history is located right here in Kansas City and is currently enduring harsh times amid President Trump's impending trade war with Mexico.


"Kansas City Southern’s business model is built on two things: economic integration between the United States and Mexico, and stability in the relationship between the two trading partners . . . (President) Trump’s election has threatened to erode both of the pillars underlying Kansas City Southern’s business. Trump has signaled his intention to tax outsourcers, to renegotiate NAFTA, and to build a massive, comprehensive wall between Mexico and the United States. Each of those policy initiatives would directly impede the current ease with which goods flow across the border."

Check the links:

Slate: Company That Relies on NAFTA and Supports the GOP Suddenly Regretting Both Decisions

The Street: Kansas City Southern Will Take the Slow Track Down

Market Watch: The Stock Has Declined Nearly 2% Since The Prez Trump Tweet Storm Vs. The Mexican President

Fox4: Proposed border tax draws concern from many corners of Kansas City

KSHB: Impact on KC of 20% tariff on Mexican imports

And so . . .

We can pretend to care about social justice and human rights for hours, days weeks and years . . . As with all things, the real fight is about money.


(TKC NOTE: This blog does not hold any position in KC Southern stock)

Many ideologues and supporters of the President are willing to accept this economic hardship as a cost of doing business incurred whilst building better security for the nation and they would strangely find company among more liberal American labor advocates.

Still, many voters seem to be overlooking the very real and local economic consequences of a trade war that are much greater than simply a declining supply of burritos and pottery . . . Like it or not, nobody builds a solid portfolio on patriotism alone.

You decide . . .


Anonymous said...

Still worth it!

Anonymous said...


JimBroski said...

^^^ In one day. That's a pretty big deal. Probably a few billion in market capitalization. Go back to the trailer, the adults are talking.

Anonymous said...

I would like to give Trump my 401K so he will take away all my fear. It will be worth it if he builds the wall to keep me safe. Even if I'm broke on the other side of it. I believe in Trump. He will save me!

Anonymous said...

Sell recommendations all the way around. They're buyback didn't work. The company is heading down. Too bad, they had a good run.

Anonymous said...

Goodbye NAFTA rail!

Anonymous said...

What the Fuck? Does Tony's cousin cater the frijoles for this outfit or what?

Anonymous said...

^^^ Lulz. They do employ close to 1500 full and part time workers locally so I'm sure it's possible.

Anonymous said...

Good time to take some profit while the stock market is in maximum bubble territory.

Anonymous said...

Price of jumping beans may skyrocket.

Anonymous said...

OMG Americans won't be able to consume mega tons of cheap shit from Mexico and China on their credit cards!

Horrible I tell ya!

Anonymous said...

KCMO has essentially become a taxpayer concentration camp so doubtful it will make much difference at this point.

Anonymous said...

Always take a profit ! Buy low, sell high. We will not see a correction as bad as Bill & Hillary caused. They blamed it on a Bush. It was a democrat plan that crashed everything, don't loan ANYBODY money that won't, can't ever will pay it back. Byron loves free money! He wasn't smart enough to get on the scam.

Anonymous said...

Jumping beans only worked when hot. I got ripped off!

Anonymous said...

KC Southern stock chart

Jan. 3 - $80.82
Jan. 27 - $86.00

Up 6.4% this month.

Nobody passes judgement at a stock's performance for ONE FUCKING DAY.

You folks really are this goddamn stupid.

Anonymous said...

YTD - near 50 week low.

Keep talking up that stock. Trump will save you! Been slidding since September.

Then again, I heard some guy's Ford stock dropped a penny and he shot his dog!

Rich Factor said...

It was at 125 before Trump started his campaign.

They're going DOWN!

Not Milo said...

Stock price before Trump election: 91.50.

And they've been buying back shares like crazy. Not helping to lift their fortunes.

Anonymous said...

2 KCMO-based companies NOT participating in the Trump rally.

Kansas City Southern (KSU) current share price = 86.00
52-week range = 65.69--99.96
Institutions own 90 percent
1.53 percent dividend

price trending down since late August
look for support at about 82.00 level
Landon Rowland primarily donated to political incumbents.

Cerner (CERN) current share price = 53.02
52-week range = 47.01--67.50
Institutions own 84 percent
no current dividend listed

price trending down since early August
currently sitting just above a declining trendline, if it doesn't remain above it could drop to 45 level
Neal Patterson primarily donates to Republicans

Anonymous said...

Why worry. They just need to call Sly with a good line of shit for a tax break! Besides pretty soon they can convert to passenger service and haul illegals back to that great republic down south.

Anonymous said...

Delphi automotive CFO Joe Massaro put the worst case scenario on the NAFTA trade agreement into context:
“We’re in a three- to five-day supply chain,” Massaro said. “So in less than a week, all the people who voted for him(Trump) in Michigan and Ohio would be out of work,” he said.

Anonymous said...

Joe, lets build it in America. Bring the jobs Back! Sounds like you are a shitty CFO. What happens if the rail lines get destroyed, delayed because of weather, floods... Nice try 11:12

Anonymous said...

I am sure that KC Southern will do just fine on the long term. They got access to the containers coming from China and beat Long Beach container unloading by X ten. Haul ten times the amount for less money and still make money.

Anonymous said...

Another toy train? Wow!