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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (33732)	3/7/2009 2:54:08 PM
From: Spekulatius	Respond to of 78744

re BNI, RR stocks - why would you look at Earnings/EV? (I assume you look at net earnings). if you look at this metric you are effectively double counting the interest expense (interest expense is subtracted when calculating net earnings but the debt generating the interest expense is included in the EV). FWIW, even when looking at EV/EBITDA, I agree that BNI does not look terribly cheap, I attribute that to the WEB factor and his purchases. I do think he got it right that those RR are franchises and BNI is the best West coast RR (better than UNP) and NSC is the best East Coast RR (better than CSX). NSC is cheaper than BNI with respect to the metrics I look at so i go with that one for a small initial buy.