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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (33287)3/5/2009 12:12:59 AM
From: Spekulatius  Read Replies (2) of 78744
 
NSC - anybody watching the RR stocks here any more? Abysmal unit declines in the mid teens, but they seem to be able to still raise their prices. NSC is projected to make 4$/share and currently cost 30$/share. They are trading at a premium of 10% above tangible book (11B$ market cap and book is 9.6B$. Dividend was raised recently, currently yielding 4.3%.

Doesn't look like a stock that goes to zero. If the stimulus works, whatever stuff is being build get's hauled through the rails mostly. They may be a relatively safe way to bet on economic recover.

I like NSC over CSX for their balance sheet strength and the valuation metrics are somewhat more favorable than WEB favorite BNI.
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