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


To: E_K_S who wrote (57979)9/24/2016 11:50:20 AM
From: Graham Osborn  Read Replies (1) | Respond to of 78817
 
Hi EKS, just curious on your reasons for choosing RAIL over GBX. I haven't investigated RAIL except at a high level so I welcome any depth on reasons for a preference.



To: E_K_S who wrote (57979)10/31/2016 6:46:17 PM
From: E_K_S  Read Replies (3) | Respond to of 78817
 
FreightCar America Inc. (RAIL)

If anybody is interested RAIL announced earnings today after the close and missed on revenues and EPS. Perhaps the only positive is they have a pretty large backlog and did not lose money.

The one positive is they did pay down some future employee pension liabilities so that is out of the way looking forward. The sector is still quite soft and I expect a new all time low to be put in tomorrow.

I will probably make a small buy but keeping position very small as this one may take awhile to start growing earnings. Most of the growth in EPS will be from cost cutting and efficiencies, not sector/organic growth.

Their tangible assets are solid and tomorrow will probably be selling close to 55% of BV. No rush to Buy as this may/could turn into a value trap.

EKS