Stock price when the opinion was issued
This is very much in the supply mode for freight cars and all sorts of rail equipment. This and Wabtec (WAB-N) are the 2 preferred ways of playing this sector. Many analysts are showing growth for this particular company. Until he can get a better handle on what the growth might be, he’ll stay away from this and stay with Wabtec.
One of the biggest in rail cars, barges also. The stock did really well as the demand for oil to be shipped by rail was growing. Then there was safety issues with existing cars, then the price of oil came down and not as much was shipped, and one of their smaller divisions makes highway barriers and they put out some that are not up to snuff and you die if you hit them. There are lots of law suits out there.
(A Top Pick Aug 13/14. Down 34.92%.) Railcar manufacturer. The big demand for rail cars was for crude oil. He was optimistic about new standards coming out to make them safer. 2 stories that hurt the business was the decline in crude production and the delay in coming out with new standards. Sold his holdings. He is not optimistic on this.
Manufactures rail cars. That is a good business normally, but these days it is a fantastic business because of big demand for grain cars and a bigger demand for cars for oil. There is going to be even bigger demand because all the old single walled cars are going to be taken out of service, and have to be replaced by double walled cars. That is going to have to be a benefit to them.