This is a super buy by any metric....the big concern depressing things is backlog. There is the potential for some big orders coming up in 2008, has anyone heard anything or seen how 2007 backlog will fair? (this has driven the price more than performance).
Only backlog news that I could find regarding 07 is ...
2006 Jun 15 | 6:00 PM FreightCar America, Inc. announced that Norfolk Southern Railway Company has committed to purchase 1,600 coal cars from the Company. The order is comprised of 400 AutoFlood III aluminum bottom discharge coal cars and 1,200 hybrid stainless steel/aluminum coal gondola cars. FreightCar America will begin delivery of the new order in the first quarter of 2007 from its Roanoke, VA railcar production facility, and will complete the order in calendar 2007.
Better news for 2008 and 2009 ...
2006 Oct 26 | 12:01 PM FreightCar America, Inc. announced that it has entered into an agreement with TXU Generation Development Company LLC to be TXU's exclusive supplier of up to 7,650 aluminum AutoFlood III coal-carrying railcars to be delivered in the second half of 2008 through 2009.
Don't know $$$ of the above-mentioned orders. Perhaps the next earnings report (Feb 8th) conference call will shed some light in this area!
this sector is out of favor currently. i don't know much about it, but there is no love right now and i guess backlog is expected to pick up later in the year, so maybe its a great buy now. i'll wait until mid year and look again. if i'm wrong, i'm wrong.