During this day, there was only one trade that could bring a good profit..
News came out on BNI :
Warren Buffett – Berkshire Hathaway Inc. buys 77,4% shares of the railway company Burlington Northern Santa Fe Corp. (BNI) by price $100 per share, reported in a Berkshire press release. The remaining stake in the company is already owned by Berkshire. In this way, the deal is valued at $44 billion, including BNI debt of $10 billion, and is Berkshire's largest acquisition in its history.
“Our country's future well-being depends on having an efficient and well-maintained rail system, – said Chief Executive Officer and Chairman of the Board of Directors of Berkshire Warren Buffett. – And vice versa, for that, for rail companies to succeed, the American economy must grow and prosper. By investing in BNSF, Berkshire has high hopes for the company and the nation's rail industry.”.
BNI shareholders will be able to receive for each security of their choice – or $100 in cash, or a certain number of class shares “A” or “B” Berkshire Hathaway. The Board of Directors of Berkshire Hathaway approved for this purpose splitting up class shares “B” based on the calculation 1:50. Explaining the purchase decision, W. Buffett said in an interview with CNBC, that Burlington's operations are much more efficient than in the past decade.
The stock price of the railway company at the close of the market on Monday was $76,07. In the course of electronic trading on Monday, the value of securities jumped by 24% – to $93,95.
Share opened immediately about a huge gap up. It was 2 options for the development of her movement for the day :
- Will stand in place
- Will pull back a couple of dollars down
I chose the second option, since the chances were great that some of the investors would close the profit
Here is my BNI trade : Burlington Northern Santa Fe Corporation
But not a big gap from the close :
