Outperfom - Price 76.07 on Nov. 2
by R.W. Baird

BNI entered into a definitive agreement with Berkshire Hathaway (BRK-A) to acquire its remaining 77% stake at $100 a share, a 31% premium to BNI's recent price. Transaction terms include a $100-a-share cash payment, or variable Berkshire Hathaway stock tender, subject to 60%/40% cash/stock proration. Valuation reflects 8.4 times our 2010 earnings before interest, taxes, depreciation and amortization, or roughly 7 times to 8 times a cyclically adjusted normalized 2010 Ebitda. The deal represents 19 times our 2010E-EPS [estimated earnings per share, and] underscores our bullish rail thesis...despite industry pricing-growth deceleration through 2009, above-industry pricing is sustainable...[and] should drive secular margin improvement and capital returns. Market cap: $26 billion.

Buy between 70 and 75

"I'm a big backer of the rails, but the rails trade with China. I prefer Union Pacific (UNP), that's been on my list." "Mad Money Lightning Round," Aug. 19

strong management

3 Stocks I Saw on TV: Dan Fitzpatrick examines three stocks viewed on Fast Money. Today's stocks are Research In Motion, China 25 Index Fund and CSX Corp.

Click here to watch the video.

market leader in US transportation

RR and potential

And because of that keep an eye on the rail stocks such as CSX [CSX] and BNI [BNI]. And while I'm at it, the ag names are talking off too! - Pete Najarian

Berkshire Hathaway (BKRA) unit National Indemnity reported that it acquired a total of around 5.5 million shares of Burlington Northern Santa Fe through the exercise of put options from Dec. 8 through Dec. 11. The options' exercise price ranged from $75 to $80 a share. Previously, National Indemnity had been filing through Schedule 13G for passive investors, but was required to change its filing status to the more detailed Schedule 13D after passing the 20% ownership threshold. National Indemnity currently holds 70,089,029 shares (20.47%).

Terranova noted three stocks that have held up during the bear market: General Mills(GIS), Burlington Northern(BNI), and Abbot Labs(ABT). They all have a strong balance sheet with good fundamental stories behind them. And they held up well in this decline. I’ve traded Burlington Northern twice this year, counters Jeff Macke, with a stop at $80. But I'd be careful because it didn’t perform well Monday when almost the entire market did.

Moves slowly

own it