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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (61415)	11/21/2018 4:41:45 PM
From: Paul Senior	Read Replies (1) of 78715

Add to losing position in RAIL. Not an exciting business to most folks. Company makes rail cars --- an apparent declining business with respect to coal cars. RAIL's trying to focus on other types of hoppers, intermodal flats, etc. All of that being a cyclical, competitive business --- RAIL's only reported profits in 5 of the past 10 years. Given their business environment, I assume management's key priority is survival. To that end, I presume they see the best way they can protect the business is to make sure they have a strong enough balance sheet to avoid going bk in the bad times. Such a balance sheet they may have. There's over $5/sh in cash/restricted securities and no ltd. (Has accrued costs and pension liabilities though) The stock's about $9/sh -- looks like it's at least at a decade low now. I'll bet the company can either hold on until better times (They say: Entering Period of Improved Demand o Industry delivery projections expected to increase by 24% through 2022) or maybe that demand stabilizes at a low level and RAIL continues to get a share of that smaller market. If so, investors may come to view this $4 stock (net of cash), more favorably (again). snl.com finance.yahoo.com

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