It would benefit GE greatly to buy Trinity, because Trinity is about to be mass producing windmills faster than most everyone ever imagined. I would'nt be shocked to see GE buy them, but I am looking forward to great earnings from TRN in the not so distant future either way. We will probably make even more money if TRN doesn't get bought
Why would you suggest that? The wind power unit makes up such a small part of what Trinity does at the moment. Specifically, what put that thought in your head? I think you wish you would have sold at 39..
Thats a silly statement. Were stocks valued higher a year ago or today. The obvious answer is a year ago. Look at the DJIA or S&P500 and look at their respective P/E's for the past 20 years. It will show you that at different times those averages have higher multiples than at other times. Why? Well when everything is great and peachy in the market people are more optimistic and are willing to pay more for certain assets. When the market is slow, the mentality is poor, and people are overly pessimistic and are willing to pay less for the same companies.
So that should answer your question. The point is if they spin it off in an IPO. In today's market maybe they could get 800 or 1 billion dollars for it. However in 5 years they might be able to get 1.2 or 1.5 billion dollars for it. SO as a shareholder, ask yourself when would you rather sell it?
I would bet my house that GE has no desire for this company.
Reasons: GE had a rail leasing business , and has been in the market to sell it off. Thus why the heck would they buy this. GE has been working on eliminating non-core assetts. They are not looking to getting into the wind tower business.
Noone is going to buy this company. But trust me it creates plenty of value on its own.