Seeking Alpha

Oil tank-car makers add to losses as Raymond James turns bear

  • Oil tank-car makers Trinity Industries (TRN -5.5%), American Railcar (ARII -6.9%), and Greenbrier (GBX -6.2%) are adding to Monday's losses after Raymond James downgraded Trinity and American 2 notches to Underperform and Greenbrier 1 notch to Underperform.
  • The initial sell-off was most likely caused by a critical piece in Barron's over the weekend, which argued the companies may have gotten ahead of themselves in gauging demand.
Comments (6)
  • rcpatrick5443
    , contributor
    Comments (754) | Send Message
     
    I have no axe to grind with Raymond James, but I could not disagree more with the thinking behind their downgrade. The demand for rail cars continues to be strong and the anticipated upgrade of requirements to strengthen cars against spills when transporting oil, etc. will tremendously increase order backlogs for highly profitable retrofitting. The United States is in desperate need of infrastructure rebuilding and restoration, and trains will likely be the major transporters. I have just added shares in ARII and TRN and wish that I had more ready cash to buy more.
    21 Nov 2013, 10:44 AM Reply Like
  • Clayton Rulli
    , contributor
    Comments (2814) | Send Message
     
    I agree. I think they are saying TRN shares are up over 40% since July!
    21 Nov 2013, 11:35 AM Reply Like
  • Chancer
    , contributor
    Comments (3065) | Send Message
     
    Barron's does not have stellar track record for their critical pieces. In fact, a negative article in Barron's is usually a signal to buy on weakness.
    21 Nov 2013, 12:26 PM Reply Like
  • DAG Investments
    , contributor
    Comments (3637) | Send Message
     
    We only need to read beyond the headlines on the (TRN) downgrade by (RJF). I've read the entire 12-page report and it is a valuation call. In other words, (TRN) went beyond their $53 target and did so too fast. Precisely the opposite of Barron's blogger in every way, (RJF) does actual research, has no ulterior motives and has been right on (TRN) all along. The track records say it all. A summary of my opinions on (TRN) is here: http://seekingalpha.co..., including updates on several recent news items in the comments section.
    21 Nov 2013, 05:08 PM Reply Like
  • csturgis83@yahoo.com
    , contributor
    Comment (1) | Send Message
     
    Is Raymond James short TRN?
    21 Nov 2013, 09:54 PM Reply Like
  • Netoolsnav
    , contributor
    Comment (1) | Send Message
     
    Oldest game in town...take profit for clients, downgrade, watch lemmings sell off, start buying again, upgrade.....repeat...
    22 Nov 2013, 09:04 AM Reply Like
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