Greenbrier: From Buy To Strong Buy

Patrick Doyle
7.29K Followers

Summary

  • The shares have dropped in price since I finally took a bullish position here. I want to explore whether or not it makes sense to buy, sell, or hold.
  • A recent conversation between a Greenbrier executive and the analyst at Cowen has relieved some of my concern here, and I'll be buying more today.
  • While shares may languish as short term issues get worked out, investors are well paid with the 4% yield.
  • I feel compelled to also mention a recent insider buy. Being on the same side of the table as the people who know this business better than anyone is always a positive in my view.
Wall street sign in New York with New York Stock Exchange background

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It’s been a little over 2.5 months since I finally turned bullish on The Greenbrier Companies Inc. (NYSE:GBX), and in that time the shares have returned a negative 7.3% against a loss of about 3.2% for the S&P 500. It’s time

This article was written by

7.29K Followers
I'm a quant investment newsletter writer who marries fundamental analysis with the latest research in momentum. Over the past few years, I’ve developed a piece of software that helps me track the level of optimism and pessimism embedded in stock price. I seek to challenge the assumptions embedded in price by profitably exploiting the disconnect between what the market thinks and what is a likely outcome. I invest in those companies that have a greater than average chance of giving us all a surprise in the next few months.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GBX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I'm buying another 500 shares this afternoon.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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