cemagraphics
The shares of Trinity Industries inc. (NYSE:TRN) are down about 17% since I recommended people avoid the name. You're welcome. The company just announced a fairly hefty order from rail lessor GATX (GATX), and
Trinity Industries Now A Buy
Summary
- I think the recent order from GATX represents upcoming growth for the industry, and for Trinity in particular, obviously.
- I think the conversation I highlighted in my recent Greenbrier article is relevant here. The industry is improving fairly dramatically.
- The shares are now quite cheap on a price to sales basis, and investors are well compensated by the current dividend. We're getting paid to wait for the inevitable.
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 TRN 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'll be buying 400 shares this morning, and will add to the position periodically over the remainder of 2022.
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