The Greenbrier Companies
American Railcar Industries (NASDAQ: ARII) peaked at $47 per share back in April. Since then, the stock has declined nearly 30% to its current price. A 30% drop is enough to make even an adrenaline addict's stomach sick. This red flag may be enough to keep the average investor away. But, if you look closely, you may find this railroad stock to be right on track.
Why the 30 more »
When Warren Buffett substantially bolstered his holdings in railroad companies with the November 2009 purchase of Burlington Northern, he sparked interest in a cyclical industry that had nearly hit rock bottom. Looking back, it was outstanding timing, as, for example, the value of sector stocks such as Union Pacific and CSX have risen more than threefold since that time.
At the same time, some companies that are complementary to the more »
Unconventional oil shales have provided critical revenue for the large US independents at a time when weak gas pricing might otherwise be disastrous. Getting that oil to market however, is a challenge. Bakken production is log jammed because of a lack of pipeline infrastructure. Similar issues have hamstrung western Canadian syncrude producers. Rail shipping has been critical to getting this off-the-beaten-trail production to market and its contribution is still expanding more »
One of the little known secrets is in investing in the freight trains, cargo trains and the train builders. One of the companies to closely watch is The Greenbrier Companies (NYSE: GBX). GBX is about $21.00. It has a nice balance sheet; however, last quarter they missed earnings like most companies in this sectors. I started looking at it when it was trading at $15.00. At the time more »
FreightCar America (NASDAQ: RAIL) manufactures railroad freight cars, supplies railcar parts, leases freight cars through its JAIX Leasing Company subsidiary, and provides railcar maintenance, repairs, and management through its FreightCar Rail Services, LLC subsidiary. FreightCar America designs and builds coal cars, bulk commodity cars, flat cars, mill gondola cars, intermodal cars, coil steel cars and motor vehicle carriers. It is headquartered in Chicago, Illinois and has facilities in the following more »
Berkshire Hathaway’s (NYSE: BRK-B) Chairman Warren Buffett made a big bet on the rail business in 2010 with his acquisition of Burlington Northern, a major part of America’s railroad infrastructure. The company also competes in the rail services business through its ownership of Union Tank Car, the Chicago-based manufacturer of railcars and related components. Those investments have continued to pay dividends in 2012, as rising auto shipments led more »
This upcoming earnings season has been long feared by both analysts and retail investors, as companies limited their spending due to the fiscal cliff. Therefore, the markets have sold off in fear of earnings. But on Tuesday, there were several companies that either gave guidance or announced earnings that may provide a peek into how the season may play out.
Rail Gets a Sudden Boost
On the 14th of this month, Trinity Industries (NYSE: TRN) announced that, through a wholly owned subsidiary, it has acquired the assets of Armstrong Bros. Holding Co., a Michigan-based manufacturer and lessor of trench shields and shoring equipment for the underground construction industry, for a total price of $40 million. This $40 million acquires net working capital, rental fleet assets, associated manufacturing and operational facilities, and certain patents and trademarks more »
Greenbrier Companies (NYSE: GBX) announced per a 13D that billionaire Carl Icahn sold off over 65% of his stake, dropping his ownership of the rail car company from 9.9% to 3.4%. The selloff comes after Greenbrier rejected Icahn’s latest offer to pay $22 per share for the company, compared to its $15.60 trading range. Shares fell around 15% last week on the news that Greenbrier rejected more »
The famous 76-year old activist investor Carl Icahn got himself busy again at the end of 2012 with his plan to take over the railroad transportation equipment provider Greenbrier Companies (NYSE: GBX) for around $543 million, or $20 per share. The offer was only a 5% premium to last Monday's trading price of $18.97. Carl Icahn, who owned 56% of American Railcar Industries (NASDAQ: ARII), is pushing for more »
Shares in The Greenbrier Companies (NYSE: GBX) rose about 15% on November 13 after billionaire Carl Icahn’s money management group reported that it had acquired 10% of the company’s shares outstanding, or 2.7 million shares. Icahn indicated that he was interested in exploring “strategic opportunities” for the manufacturer of railcars. His most recent 13F filing reported a steady position in American Railcar Industries (NASDAQ: ARII); that company more »
The economy teeters between tepid recovery and roaring revival, stagnant slowdown and recession. No one knows where the economy is headed, but everyone speculates. What we know are facts and figures. The third quarter is history and the stock market is doing fine.
Year End Close
Third Quarter Close
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The Transport sector has held its ground despite the limping economy, it's resilience a suggestion of better times ahead despite what headlines might suggest. A pick up in Transport activity is generally a sign of improving business conditions; and new highs in transport stocks is a good lead for gains in Industrials and Consumer Discretionary sectors and the broader economy as a whole.
Within the more »