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Bought Norfolk Southern Corporation - ValueInvestingNow.com

Bought Norfolk Southern Corporation

Yesterday at 10:45 AM the market price for Norfolk Southern Railway dropped below $199 per share. The Value Investment Fund purchased 100 shares at $199 per share and paid a $1 per share transaction fee. The Fund exercised its margin account to purchase this position. The margin account terms requires a 2% fee and a 1% end of month interest payment on any balance at end of day on the last business day of the month. In total, on April 28th, end of day, basis in Norfolk Southern is 206.04 per share. The following is the basis calculation:

Purchase 100 Shares at $199/Each                           $19,900.00
Transaction Fee at $1/Share                                            100.00
Margin Fee at 2% on Total of $20,000                            400.00
End of Month Margin Interest at 1% on $20,400            204.00
Total Basis                                                                 $20,604.00
Basis per Share                                                               $206.04

Based on the history of this particular security, the downside risk is low; the upside potential is high. Look at this three year look back:

Norfolk Southern Corporation

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