Other Rail Stocks Chasing Buffett (BNI, UNP, CSX, NSC, KSU)

Posted in pre-market 
November 3rd, 2009

We have already covered the news earlier this morning that Berkshire Hathaway Inc. (NYSE: BRK-A) is acquiring Burlington Northern Santa Fe Corporation (NYSE: BNI). But this news has many of the other railroad stocks popping early on the news…. We wanted to update our 8:12 AM piece so as of 9:10 AM EST:

  • CSX Corp. (NYSE: CSX) up 7% at $45.90 on over 510,000 shares.
  • Norfolk Southern Corp. (NYSE: NSC) is up 5.6%% at $49.25 on about 177,000 shares.
  • Kansas City Southern (NYSE: KSU) is up 9.7% on almost 50,000 shares.
  • Union Pacific Corp. (NYSE: UNP) is up 5.5% at $58.10 on 750,000 shares.

Buffett owns a stake in Union Pacific and we’d expect him to sell it after his comments he made on CNBC.  You can also likely forget about Buffett buying another rail player because of antitrust issues that could come into play. This acquisition does set the valuation bar higher for the sector, but it would tale other players to buy these besides Buffett.

Jon C. Ogg
November 3, 2009

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