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

To: E_K_S who wrote (58066)	9/24/2016 4:20:58 PM
From: Graham Osborn	Respond to of 78817

Thanks EKS. There's not much that troubles me here about my preference for GBX over RAIL (also per an earlier post). I'm not quite sure what to make of the comment regarding relative EV unless you are expecting some kind of takeover activity - I don't know what the statistics are on takeover probability as a function of EV. % growth of the underlying business can also be an EV-dependent variable, but of the 2 GBX's track record for growth is better. OT: your technical approach to value buys is interesting and quite different from mine. I pretty much ignore the % decline in recent history except perhaps as some sort of loose qualitative contrarian indicator, and I certainly wouldn't use it as a gauge for the future profitability of an investment (remember a stock going up can go higher, and one going down can go lower). I do like to see a stock showing accumulation after a heavy death slide, and don't mind buying well off a support level if the runup didn't happen too quickly. It sounds like you are basically indifferent fundamentally unless you feel the new factory significantly changes the price/ value ratios. If they paid fair value for the construction, I assume that's not the case.