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Strategies & Market Trends : Value Investing

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From: bruwin	9/23/2019 4:12:52 PM
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TRN. My 5c worth ..... First of all, TRN's Total Annual Revenues have fallen about 60% in the last 3 to 4 years. Not a great incentive to invest in the company. But apart from that, TRN wasn't doing too badly up to its EBITDA level in 2018 .... 21% of revenue left over at its last Annual. BUT then, Interest Expense CHEWED UP 35% of what was left at EBITDA. The way I see it, it doesn't matter Why that happened, or whether it has anything to do with the "nature of the business". The fact is that AFTER INTEREST EXPENSE and TAX deduction, the company ONLY HAS ~6% of its Gross Revenue left over at its Bottom Line. Nothing, IMO, to "write home about". That's what's really important and what really matters. And I'm fairly certain that the Market is not that interested as to which Fund has what of TRN, or what their business "diversifications" are. They want to see a decent amount of Revenue left over that can be transferred to the company's Balance Sheet and IMPROVE its Asset Base. They would also like to see a reasonable growth in the company's Total Annual Revenues. And it seems to me that the Market made it's "feelings" clear about TRN :- Share Price in August 2018 = ~$28 Share Price today = $19.90c, a fall of ~30%.

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