by johnpbarlow
Here are a few P&W ownership related articles discussing events that have occurred in the past few weeks wrt health of CEO Robert Eder, primary shareholder of P&W, and Gabelli Funds' purchase of 10% of P&W shares:
http://corvuswire.com/2016/01/23/provid ... 23/765785/
http://www.streetinsider.com/Corporate+ ... 78485.html
http://seekingalpha.com/article/3795856 ... pportunity
Net: primary stock holder, Robert Eder, is in his 80's but just sustained a head injury at the end of December serious enough to warrant a P&W press release about his health. FWIW,there is commentary from anonymous person in the Seeking Alpha article that as Eder has been "basically been running the company since 1966 and oversaw its extraction from Penn Central", it's unlikely P&W will merge with another RR as long as he is involved. As P&W stock is viewed by some as having upside at its current price, perhaps Gabelli senses something is on the horizon for P&W.
P&W's latest 10-Q filing (Nov 12, 2015 for Q3 '15) has some interesting tidbits in the operating revenues discussion that I interpret as being influenced by increased NS/PAS interchange at Gardner observed over the past year:
http://corvuswire.com/2016/01/23/provid ... 23/765785/
http://www.streetinsider.com/Corporate+ ... 78485.html
http://seekingalpha.com/article/3795856 ... pportunity
Net: primary stock holder, Robert Eder, is in his 80's but just sustained a head injury at the end of December serious enough to warrant a P&W press release about his health. FWIW,there is commentary from anonymous person in the Seeking Alpha article that as Eder has been "basically been running the company since 1966 and oversaw its extraction from Penn Central", it's unlikely P&W will merge with another RR as long as he is involved. As P&W stock is viewed by some as having upside at its current price, perhaps Gabelli senses something is on the horizon for P&W.
P&W's latest 10-Q filing (Nov 12, 2015 for Q3 '15) has some interesting tidbits in the operating revenues discussion that I interpret as being influenced by increased NS/PAS interchange at Gardner observed over the past year:
Operating revenues increased $1.2 million, or 4.9%, to $25.7 million in the nine months ended September 30, 2015 from $24.5 million in 2014. This increase is the result of a $1.4 million (6.3%) increase in conventional freight revenues and a $187 thousand (42.2%) increase in other freight related revenues, offset by a $174 thousand (15.1%) decrease in container freight revenues and a $158 thousand (18.7%) decrease in other operating revenues. The increase in conventional freight revenues results from a 12.6% increase in traffic volume, offset by a 5.6% decrease in the average revenue received per conventional carload, The Company’s conventional carload increased by 3,183 to 28,475 in the first nine months of 2015 from 25,292 in 2014.So maybe P&W property will be in play soon? An Ackman-like play to change P&W board at a vulnerable time and seek a sale? Possible suitors: NS? G&W? Iowa Pacific?
The number of shipments of most commodities handled by the Company increased. The majority of the increase was attributable to shipments of automobiles, chemicals (including ethanol), and metal and construction products. This increase was offset, in part, by decreases in shipments of other commodities. The decrease in the average revenue received per conventional carload is due to a shift of the mix of commodities, the origin of the shipments, and decrease in fuel surcharge revenue.
The decrease in container freight revenues is mainly the result of a 13.4% decrease in traffic volume. Container traffic volume decreased by 2,147 containers to 13,917 containers in the first nine months of 2015 from 16,064 containers in 2014 as a result of more international freight being transloaded at the west coast ports to domestic containers, as well as some rate changes.