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

To: Graham Osborn who wrote (55593)	5/3/2016 4:27:08 PM
From: E_K_S	Read Replies (2) \| Respond to of 78657

Trinity Industries Inc. (TRN) - started small buy @ $18.32/share FreightCar America Inc. (RAIL) - same industry but smaller and selling at a 45% discount to it's GN This is a Graham Number valuation play. GN value is $25.14/share. Based on today's closing price of $18.38/share, TRN is selling at a 36.9% discount. TRN BV & Capital Investment FreightCar America Inc. (RAIL) missed on earnings today and warned about future revenue softness. I like TRN better but RAIL may/could be a complementary one to buy in the sector. Both pay similar div that yield 2.1%. RAIL may/could have cash flow problems as their FCF/share has been negative last two years. If market goes lower, I expect these to move lower too. No rush as turn around will be over 18 to 36 months as economy picks up. Both sell at forward PE's around 11.5. I am taking proceeds from AP to build this position. When completed in 60-90 days position may represent at most a 1% portfolio holding. EKS