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

Banks and Utilities

[slimjim11]

Thanks for the respectful dialogue, Righand. I just checked the financial statements for BMO as an example. Liabilities of $650B sit on top of equity of $40.7B, a debt/equity ratio of 16:1. Breathtaking, but not at all risk-free. As for utility companies, their assets also depreciate and fail, leading to rather expensive oil leaks. And the growth of pipeline companies is politically constrained. Just ask Trans Canada about Keystone. STB's debt/equity ratio is $397million/$170million = 2.34:1, and last I checked, education is endorsed not contested by all levels of government. Yes, I think STB should trade at a 4% yield. Have a great day.

[righand2]

Thanks for proving my point.