RE:RE::-)I'm very confident that some of those are pressure relief valves. In the article they mention several sizes of valves (in inches). From my understanding, pressure relief valves are larger than vacuum relief valves. That probably means that the valves of largest size (3-inch) would be pressure relief valves. From a financial standpoint, this makes sense as well since PVRs are more expensive than VRVs. Here, is the mention of the 3-inch valves:
"The valves, manufactured by Berkshire Hathaway Inc-owned McKenzie Valve & Machining LLC, are inconsistent with a design approved by the American Association of Railroads, the FRA said. Certain closure plugs on the 3-inch valves can damage seals and cause leaks."
If my logic is right, it would have material implications for Q1 and Q2. I'm not sure if anyone realizes that 6000 pressure relief valves that need replacing would result in a peak revenue potential of $12M. It seems unlikely that they wouldn't at least get 60-70% of the peak potential revenue given the fact that they had a 50% share of the OEM market in 2014 and the fact that their piece of the pie is getting bigger very quickly. Furthermore, it would make my 2015 revenue estimate look conservative. I was projecting $50M in sales, but we could easily see $60M if I'm right, and if the regulations don't get delayed or they even get fastracked. Very difficult to find companies companies growing consistently at this rate. That's why I'm a big advocate of letting your winners run when you find them -- it's because they're so hard to find. I really think 2015 and 2016 will surprise many people. IMO, now is a great time to be a Kelso shareholder