During the day there was only one deal that could bring a good profit.
ON BNI left news:
Warren Buffett – Berkshire Hathaway Inc. buys 77.4% stake in railroad company Burlington Northern Santa Fe Corp. (BNI) at $ 100 per share, reported in the press release, Berkshire. The remaining stake in the company already owned by Berkshire. Thus, the transaction is valued at $ 44 billion, including debt of BNI in the amount of $ 10 billion, and is for Berkshire’s largest acquisition in its history.
“The welfare of our country’s future depends on an effective and well-served by the rail system, – said CEO and Chairman of the Board of Directors of Berkshire Warren Buffett. – And vice versa, so that the railway companies prospered, the American economy needs to grow and prosper. Investing in BNSF, Berkshire holds great hope for the company and the entire railroad industry of the country. ”
Holders of shares of BNI will be available for each paper by choice – either $ 100 in cash, or a certain number of shares of Class “A” or “B” Berkshire Hathaway. Board of Directors of Berkshire Hathaway for those purposes approved the stock split class “B” at the rate of 1:50. Explaining the decision to buy, W. Buffett said in an interview with CNBC, that the operations of Burlington has become much more efficient than in the past decade.
Value of shares of the railway company at market close on Monday was $ 76.07. In electronic trading on Monday the value of securities jumped by 24% – to $ 93.95.
Action opened immediately on the huge gap up top. It was 2 versions of its movements for the day:
- Into place
- Roll back a couple of dollars down
I put on the second option, since the chances were high that the closed part of the profits of investors
Here is my trade on BNI : Burlington Northern Santa Fe Corporation
And that’s not a big gap to close:
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