Austin Guy
Value, contrarian, newsletter provider, long-term horizon

Stay On Track With This Railroad Stock: 30-50% Upside In American Railcar

Summary

American Railcar Industries represents an excellent small cap investment opportunity over the short to medium term. Strong management, increasing margins and revenues, as well as global expansion and investment in its high margin segment make this company a favorite among railroad stocks. Based on valuation, this stock is trading at a 30-50% discount to fair value.

Company Overview (source: 10-K)

American Railcar Industries (NASDAQ:ARII) is a leading North American designer and manufacturer of hopper and tank railcars. It provides railcar customers with integrated solutions through a comprehensive set of high quality products and related services offered by its three reportable segments: manufacturing, railcar leasing and railcar services.

    Manufacturing consists of railcar manufacturing and railcar and industrial component...
Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details