Burlington Northern Santa Fe Corp (BNI)

RISE TOO STEEP TOO SOON.

m&a basic investment theory company being acquired should go up

Transportation reqmnts will increase as we pull out of this ression.

Arbitrage play that the sale will go through while the S&P goes down.

2.5% upside on Buffets buy price, if it doesn't come off there'll be a negative reaction, as the stock at this price is fully marked up. Potential 2.5 % arbitrage gain to be made at this price.

Warren Buffet. Duh.

BNI has performed well during the past 5 years. Gasoline is bound to go up and will in the near future. Whether we like Buffet or not, he doesn't invest in anything unless it will enhance his portfolio.

Buffet is buyin

Buffett's purchase.

with the blessing of BH, this stock is set to rise. Even though its fundementals are in the middle of the pack of railroads BH sees something in this freight mover. Gas prices to continue to rise? I can't put a finger on that.

Buyout

Due to advances in fuel technology etc...they can transport more using less fuel. Its a win win.

Need at least one ground transportation stock and this seems about as good as they get.

Slighlty higher ROE than UNP, and a steady growth in shareholder equity over the years. Great company! Expect BNI to outperform UNP by a tiny fraction over the years. And expect both companies to outperform the S&P500 significantly. Rails has been the place to be since 2005.

We also like Daqin Railway in China.

Long-term play on the recovery of the economy. Nice dividend payer.

As economy grows, more goods shipped by rail.

5 Star, Small Cap- pays dividend

It has a great management team and culture. It has a diversity of products: largest coal hauler, largest grain hauler, lots of lumber (so when real estate comes back this will grow), and largest intermodal business. When international business picks up again, the intermodal business will soar.

As the economy improves the shipment of goods will increase (don't forget the Christmas shipping season is just around the corner). Also the increase in electric utilities will require Poweder River "clean" coal. The cash for clunkers program will require shipment of newly built autos. Grain harvest and therefore shipment of grain to ports is also underway. Lots of positives.