SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Senior who wrote (58753)6/27/2017 3:40:06 PM
From: E_K_S  Read Replies (1) of 78744
 
Trinity Industries, Inc. (TRN) - sold 30% @ $27.75/share
American Railcar Industries, Inc. (ARII) - 2nd Buy targeted at/below $36.50/share

My first Buys in TRN was in 5/2016 at prices between $16.90/share-$18.30/share. I sold my high cost shares as the GN valuation model has TRN fairly valued at $26.28/share.

My thought was to put the proceeds into ARII w/ another Buy at/below $36.50/share. The GN valuation model shows ARII to be 10% undervalued w/ a fair value of $39.37/share. Unfortunately, ARII has rallied the last two days +5%.

ARII also pays a higher dividend just short of 5%. Will wait for my entry point for ARII. I already have one Buy for ARII on 11/2018 at $38.50/share. I still think the TRUMP infrastructure plays has legs but may/could take longer to get started w/ Congress stalled on passing any new legislation.

American Railcar Industries (NASDAQ:ARII) (hereafter "ARI") is the third largest manufacturers of railcars in the US. ARI is owned and controlled via a 56% stake by famed activist investor Carl Icahn. Icahn last purchased shares in 2011 at around the $15 dollars a share mark, a very slight premium to a book value. Since Icahn's last purchase of ARI shares the company has had a distinct and dramatic transformation, all against the backdrop of railcar industry resurgence. This meteoric rise has lifted shipments of railcars nearly 400% and ARI's share price as much (412% since January 4th 2010).

Position is small for ARII. Also looking at The Greenbrier Companies, Inc. (GBX)but that is only 3% undervalued according to the GN model.

EKS
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News