calvino

Four Rail Transit Stocks Fueled By Peak Oil

Tom, good to see you covering Railpower. I have been with them since last year and held through the long slide. Reason - I really like the CEO, Jose Matthieu - completely committed to the company and actually knows what he is doing, having come over from Bombardier and brought management with him. Also, despite its small size, this company knows how to execute, having filled an order for a hundred multi genset locomotives for Union Pacific by the summer's deadline. What has really hurt the shares were the flame ups of the first generation of the hybrid locomotive. Not a problem with the last generation, and management has communicated that they are pursuing advanced battery storage solutions.

Now the upside. Union Pacific is keeping the company going with a small order through winter, and the hybrid gantry cranes are theirs alone in the marketplace and should be a big revenue source. They save seventy percent on the diesel and do not have the load problems that the locomotives did. The orders should come anytime. I also think, from past statements that Railpower took the Teacher's Pension money to develop their own manufacturing facilities, which they have been wanting. I am not happy about the dilution, but the company was facing survival issues. Now they are not, so I told myself to be happy about the dilution, because 45 mil is going to assure this company of survival.

Now, since I always bring in a bit of politics when talking to you. What a disgrace that fund managers and hedgies have enough money to throw at anything with a pulse overseas, and almost let this innovative, can do company die in our own back yard. Speaks poorly for our capital markets, in the extreme.

Regards!