Kansas City Southern (KSU) NewsBite - Burlington Northern (BNI) Buyout Lifts KSU

Posted: Tuesday, November 03, 2009 10:05 AM EDT

Kansas City Southern (NYSE: KSU) opened at $26.24. So far today, the stock has hit a low of $24.97 and a high of $26.30. KSU is now trading at $25.55, up $1.47 (6.10%). Over the last 52 weeks the stock has ranged from a low of $12.25 to a high of $31.83. KSU shares are getting a lift with other railroad stocks from news that Berkshire Hathaway has agreed to purchase competitor Burlington Northern Santa Fe (BNI) for $100 a share in cash and stock, a 31.5 percent premium on BNI's Monday closing price. This could be a good sign for KSU and the railroad industry. Technical indicators for the stock are bullish and S&P gives KSU a positive 4 STARS (out of 5) buy ranking. If you are looking for a hedged play on KSU the stock seems like it could be a candidate for a January out-of-the-money bull-put credit spread below the 20 range. [ABR-Seven Summits Strategic Investments NewsBite]

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