| Trinity Industries(TRN)
For those looking for a contrarian play, (IMO) Trinity is a consideration for those with a investment horizon that isn’t a short term based process….at least one year out is what it will take for TRN to play out. As for most stocks in the last 6-12 months, (TRN) has fallen due to the slow down in the transportation sector. However, with the news from Washington lately, TRN is sitting in a hot spot…..coal, wind power, and the latest –HIGH SPEED Rail Network. TRN is a national player in these segments, but just with the high speed rail network potential, huge sections of this project are basically in their back yard. For any high speed rail corridor, the infrastructure (rail bridges, rail cars, car couplers, etc.) will get the bulk of the initial investments dollars). All of these, plus LNG tanks) fall within TRN’s production efforts.
While one waits for this turn around and new investment dollars flowing into these market segments, Trinity is sitting on a Tangible Book Value that is $4-5 dollars above the current price of the stock, and as you wait you can get a nice dividend that appears to be secure, because of the cash on hand.
Trinity Industries, Inc., through its subsidiaries, provides various products and services for the industrial, energy, transportation, and construction sectors primarily in the United States. Its Rail group manufactures and sells railcars and component parts, such as auto carrier cars, box cars, gondola cars, hopper cars, intermodal cars, specialty cars, and tank cars. This group also offers railcar parts used in manufacturing and repairing railcars, such as auto carrier doors and accessories, discharge gates, yokes, couplers, axles, and hitches. It serves customers, including railroads, leasing companies, and shippers of products, such as utilities, petrochemical companies, grain shippers, and major construction and industrial companies. The company?s Railcar Leasing and Management Services group leases tank cars and freight cars, as well as provides management services. Its Construction Products group produces concrete, aggregates, and asphalt; manufactures highway products, as well as beams and girders used in highway bridge construction; and distributes construction aggregates, such as crushed stone, sand and gravel, asphalt rock, and recycled concrete. This group serves customers, such as contractors and subcontractors in the construction and foundation industry. The company?s Inland Barge group offers various inland barges and fiberglass barge covers; dry cargo barges, including deck barges, and open or covered hopper barges that transport various commodities, such as grain, coal, and aggregates; and tank barges used to transport liquid products. Its Energy Equipment group manufactures tank containers and tank heads for pressure vessels, propane tanks, and structural wind towers. The company was founded in 1933 and is headquartered in Dallas, Texas.
I established a position in the stock today (4-17-09) and would welcome any discussion……especially thoughts on how the High Speed Rail network might impact your area of the country. These are the proposed sectors that will be considered for the first federal funding…….
California corridor (Bay Area, Sacramento, Los Angeles, San Diego)
Pacific Northwest corridor (Eugene, Portland, Tacoma, Seattle, Vancouver British Columbia)
South Central corridor (Tulsa, Oklahoma City, Dallas/Fort Worth, Austin, San Antonio, Little Rock)
Gulf Coast corridor (Houston, New Orleans, Mobile, Birmingham, Atlanta)
Chicago hub network (Chicago, Milwaukee, Twin Cities, St. Louis, Kansas City, Detroit, Toledo, Cleveland, Columbus, Cincinnati, Indianapolis, Louisville) |
|
