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Stone Fox Capital Advisors is a registered investment advisor founded in 2010. The firm offers portfolio management with a focus on opportunistic stocks providing secular growth trends at an affordable value. An emphasis is placed on fundamental analysis though charts are used for timing entry... More
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  • Impressive Numbers At FreightCar America 0 comments
    Feb 17, 2012 1:13 PM | about stocks: RAIL
    FreightCar America (NASDAQ:RAIL) had blowout earnings for Q4'11 reported this morning. Unfortunately this isn't a stock that I follow, but anybody watching the backlog numbers probably isn't that surprised. The stock has soared over 22% on the news.

    RAIL reported earnings of $.71 that easily smashed the $.13 estimate. Most astonishing were the rail car deliveries and backlog growth compared to last year and even last quarter.

    Deliveries

     

    • Q4'11 - 2,489 units
    • Q3'11 - 1,515 units
    • Q4'10 - 694 units

    Backlog
    • Q4'11 - 8,303 units
    • Q3'11 - 6,311 units
    • Q4'10 - 2,054 units

    It appears that most of the growth is related to a eastern coal car replacement cycle. Demand evidently jumped as more eastern coal is being shipped internationally. Getting that coal to ports evidently takes more railcars or just newer railcars. The big problem is that coal demand has slowed making the replacement cycle a big question especially to jump into a stock up 20%.

    Interesting information but investors need to beware.

    Disclosure: No positions mentioned. Please review the disclaimer page for more details.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: Please consult your financial advisor before making any investment decisions.

    Stocks: RAIL
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