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researcher59

01/03/05 4:22 PM

#621 RE: wadegarret #610

Wade: KCS at 13.63

The entire O&G sector was hit hard today by falling oil prices and profit taking in the new year (thereby delaying taxes by a year). KCS has been on my watchlist and looks good, but the EPS going forward is very dependent on what the price of natural gas will do in 2005. I'm bullish on O&G prices, but plenty of volatility is assured. The warm weather in the northeast put downward pressure on heating oil today. KCS has been pretty range bound the last few months, but if it drops some more I'll probably pick up some shares. EPS of $1.06 through 9 mos, however keep in mind that they're in a very low tax bracket and that will change in roughly 18 months when they run out of operating loss carryforwards. Good luck with it !