Underanalyzed E...'s  Instablog

The Pittsburgh & West Virginia Railroad (PW) REIT of... an example of a stock/bond hybrid in the sense that this common stock enjoys the 4.5% dividend paid by the creditworthy Norfolk Southern Corp (NSC) on a 99-year lease with opportunities for renewals without escalation terms for $915,000 per year in exchange for the use of the 112 miles of railroad, with a book value of 9.15MM. The higher market cap points to the increased demand by investors for a steady dividend in an recessionary environment.

While the rest of the market was heading downward, the price of this security was rising markedly during the winter of 2008 from 9 to as high as 14, then retreating down to 10.58, where we find it at today. Investors fleeing uncertian stocks with uncertain valuations have found a haven in this thinly traded security.

Disclosure: No position