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{"id":21397,"date":"2023-04-28T12:49:39","date_gmt":"2023-04-28T12:49:39","guid":{"rendered":"https:\/\/businessecon.org\/?p=21397"},"modified":"2023-08-15T07:58:30","modified_gmt":"2023-08-15T07:58:30","slug":"bought-norfolk-southern-corporation","status":"publish","type":"post","link":"https:\/\/valueinvestingnow.com\/2023\/04\/bought-norfolk-southern-corporation","title":{"rendered":"Bought Norfolk Southern Corporation"},"content":{"rendered":"

Bought Norfolk Southern Corporation<\/span><\/h1>\n

Yesterday at 10:45 AM the market price for Norfolk Southern Railway<\/a><\/strong><\/span> 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:<\/span>
\n<\/span><\/p>\n

Purchase 100 Shares at $199\/Each\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$19,900.00<\/span>
\nTransaction Fee at $1\/Share\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 100.00<\/span>
\nMargin Fee at 2% on Total of $20,000\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 400.00<\/span>
\nEnd of Month Margin Interest at 1% on $20,400\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 204.00<\/span><\/span>
\nTotal Basis\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$20,604.00<\/span>
\nBasis per Share\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$206.04<\/span><\/p>\n

Based on the history of this particular security, the downside risk<\/strong><\/span><\/a> is low; the upside potential is high. Look at this three year look back:<\/span><\/p>\n

\"Norfolk<\/span><\/p>\n

Act on Knowledge.<\/span><\/strong><\/p>\n