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

To: Paul Senior who wrote (57305)	5/25/2016 11:06:41 PM
From: E_K_S	Respond to of 78797

Trinity Industries, Inc. Announces New $940 Million Wind Tower Order This was unexpected. I did not realize that their order book for wind towers was so large. "...the Company’s wind towers business are reported in the Energy Equipment Group. As of March 31, 2016, the backlog for wind towers was $263.4 million...." This order increases their backlog by 3.5x so it's a pretty big deal but spread out over three years. When adjusted for the three year delivery period, annual revenues from this one order represents 5% of their annual company revenues and more than doubles their annual backlog of business. Trinity Industries has a subsidiary in China and partner w/ Weifang East Pipe Industry Technical Co., Ltd.. I am not exactly sure what their relationship is/was but they manufacture these wind towers and guardrails using the Trinity Industry design/specifications in China. In 2012 and forward, product manufactured in China was hit with huge tariffs in the U.S. as they were accused of dumping product below cost. I suspect it is the nature of the business, finding a low cost place to manufacture the product but not get blamed for dumping. They do generate worldwide sales excluding U.S. from product manufactured in China. The strong U.S. dollar impacts non-U.S. sales especially if it has to be manufactured in the U.S. Therefore it is good to see that they can win U.S. orders given these other constraints. I suspect the strong U.S. dollar will impact their rail car builds especially in India. ----------------------------------------------------- As a footnote, not sure what a Trump presidency would do to their non-U.S. trade but if the U.S. dollar got weaker to the other world currencies, then much of this manufacturing may/could come back to the U.S.. Utilize some smart robots in the manufacturing process, then maybe they could compete on price. EKS

To: Paul Senior who wrote (57305)	7/22/2016 1:48:31 PM
From: E_K_S	Read Replies (2) \| Respond to of 78797

Trinity Industries Inc. (TRN) - out w/ good earnings and estimates full year at $2.00-$2.30/share This stock continues to be a Graham value play still 56% undervalued w/ a fair value price target of $34.28/share. This is +25% from my Buys in 5/2016 w/ avg cost of $17.50/share. Stock still cheap w/ a forward PE of 10 and selling under BV of $24.64/share. Will continue to hold and will re-evaluate if/when market price exceeds BV. Nice to see this one working as the risk/reward was quite good based on the entry point. EKS

To: Paul Senior who wrote (57305)	7/29/2016 8:52:25 AM
From: E_K_S	Read Replies (1) \| Respond to of 78797

Trinity Industries Inc. (TRN) BRIEF-Valueact Capital Master Fund LP reports 6.8 pct stake in Trinity Industries Trinity Industries Inc * Valueact Capital Master Fund LP reports 6.8 pct stake in Trinity Industries Inc as of July 18, 2016 - SEC filing * Valueact Capital Master Fund says intends to have talks with Trinity Industries management and board to "discuss ways to enhance shareholder value" * Valueact Capital Master Fund says purchased securities of Trinity Industries based on their belief that the securities were "undervalued" . ------------------------------------------------------- Nice to see the big Buys buy this value investor. GN value at $34.99 so still 69% undervalued from the current price of $29.97/share. Stock +4.91% in pre-market at $22.00/share (as insider buys hit the news wire). EKS