STUDENT TRANSPORTATION INC 5.25 PCT DEBS T.STB.DB.A

RE:RE:RE:RE:Dennis on BNN

[goldsternp]

I have owned a large number of STB shares for 5 years including margin. This is the only stock I hold where it feels like a "family" business, albeit managed properly. Denis Gallagher really likes what he is doing and appears to have infected  his employees with his enthusiasm. To me, the recession proof nature of the business and the absence of cut throat or foreign competition suggests a stable business. It's sort of like a boutique hotel with a good restaurant that has satisfied customers and has been in business for a 100 years. This company has class and will therefore alway do well.

I was impressed by the timing of the secondary stock offering even though it hammered the share price. When one is invested for the long term, short term fluctuations seem to matter only subjectively as objectively one shouldn't care. As someone pointed out, if you own a rental apartment building, you don't really care about the property value until you have to sell. 

I am puzzled that the company doesn't borrow a large sum at 4% interest, which is tax deductible, and buy back a bunch of stock that is costing them 11% dividends, which are not tax deductible. Anyone care to explain ?

It is much more pleasant participating with  long haul "investors" rather than the, abusive, short term traders that generally prevail.