RE:RE:Senate Passes Spending BillHere's why I agree. This Thursday, Dec 18th, Canada's Transport Minister meets with her American counterpart to discuss rail safety regulatory harmonization. How many years to do about 200,000 rail cars (very very rough number). The U.S. rail industry likely wants 10 to 7 years. U.S. regulatory authority likely wants 7 to 5 years. Canada's regulatory authority likely wants 5 to 3 years. The harmonization zone is in the area of 5 years.
At five years, about 35,000 - 40,000 rail cars will need an upgrade or replacement. With an announcement of 'five years' by both U.S. and Canada, my back of the napkin calculations figure a share price of $13-15 by May 2014 but this is based on orders and sales, as opposed to being based on revenues received.
Note: This excludes all the Kelso valves for the trucking industry (which possibly may eventually dwarf the Kelso railway valves in terms of revenue, ... but not before 2019-2020).
Kelso under $7? not for long.