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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (48595)

7/5/2012 8:21:02 PM

From: E_K_S

Respond to of 78673

Hi Grommit:

RE: TRN

That's a lot of insider selling. I missed that. I did find this pending litigation which is quite large (over $100M). I wonder if some of the insiders know the possible out come?

Trinity Industries subsidiary files litigation against Suzlon Wind EnergyTrinity Structural Towers, a subsidiary of Trinity Industries, announced that it filed a breach of contract law suit against Suzlon Wind Energy Corporation for failure to comply with its purchasing obligations for structural wind towers from TSTI pursuant to the 2008 Supply Agreement between the two companies. The law suit was filed in the District Court of Dallas County. In accordance with the Agreement, Suzlon agreed to purchase approximately $377.3M worth of TSTI-manufactured 80-meter wind towers on a scheduled basis through 2011. Following the execution of the Agreement, TSTI and Suzlon mutually agreed to amend the Agreement on two separate occasions, ultimately resulting in an additional $123.8M worth of wind towers to be purchased and extending the delivery timeframe of wind towers through 2013. To date, TSTI has produced and delivered approximately $88.6M worth of wind towers.

Suzlon Wind Energy Corporation is pretty large. Their corporate headquarter is located in India but have operations in Brazil, China and North America.
goo.gl

There was some news that the parent company was having problems making payments on their corporate bonds and was selling assets to raise money. Sales include a wind farm and a China manufacturing facility.

My TRN tracking position is small.

Kronos Worldwide Inc. (KRO) is more profitable on several measures:

Profitability
Profit Margin (ttm):	19.08%
Operating Margin (ttm):	31.32%

Management Effectiveness
Return on Assets (ttm):	21.23%
Return on Equity (ttm):	43.64%

Earnings are July 29 for KRO so if they disappoint some what, it might provide a good entry point.

FWIW both COR & DLR hit new 52wk highs today.

EKS