Barron's: Oil tank-car makers could be poised to tumble

|By:, SA News Editor

Oil tank-car makers such as Trinity Industries (TRN), American Railcar (ARII) and Greenbrier (GBX) may have overestimated demand, and their shares could be vulnerable to a 20%-plus drop, according to a weekend Barron's report.

Oil finds in places such as North Dakota have strained pipeline transport, creating the need for more trains, but by 2016 that need will be more than met, analysts say.

GATX (GMT) CEO Brian Kenney, whose leasing company owns the second-largest tank car fleet in North America, says there's eventually going to be an oversupply as the cars are delivered and as pipelines come online.