Iowa Pacific, a more optimistic view
Author: The financier
Date: 04-26-2014 - 10:32
I would not count Ed or his railfan ventures out. What you might see is a separation of the profitable parts of the business (freight) from his "hobby" businesses (passenger and steam). Presumably he and his fellow shareholders are not giving away their 80 percent, he still has a job (for at least awhile), and he presumably will have income from his remaining interest in a growing and profitable freight business (assuming neither he nor Sam Zell are fools). So Ed could well have a big pot of money to spend as he pleases. Actually the passenger and steam stuff might benefit from not having to compete directly with the freight business for money, he can subsidize them from his separate pot of personal money. All in all it might just be a smart move for Ed and IPH, and good news for us rail fans. Win win as they like to say. But nothing is without risk and I doubt Sam is a fan, so go ride Ed's Pullmans, the Caritas, the Saratoga operation, and the Texas State steam engines while you can. Stuff like that all has a way of disappearing unexpectedly.