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

To: E_K_S who wrote (56933)	2/19/2016 10:38:09 AM
From: Graham Osborn	Read Replies (1) \| Respond to of 78777

I looked at them again a few weeks ago. I think we all underestimated how sensitive the railroads would be to a combined slowdown in the US energy and consumer cargo sectors. Given that and the debt load the value at $16 seems less compelling to me than it did at $25. This was a good example of a case where the GN's neglect of leverage underestimated the downside to our investment. As we know the book is already at risk of writedown based on the rail lawsuit.