I'm averaged in at $27 a share, since 2007 or so, reinvesting dividends. Right now I am up overall by 37%. Not a bad return in comparison to the S&P500 getting 27% return during this time period.
I have no idea why it has gone down since its recent highs. I guess I'll go with the explanation that oil by rail car growth has slowed. I suppose "disappointing" Greenbrier results also generate negative sentiment. Never mind that Greenbriar actually grew revenues 3% sequentially, albeit it was down in comparison to a year earlier.
These short term things don't bother me. My frame of reference is that this is a well run company with excellent cash flow & not so bad balance sheets. Debt is $3 billion, which concerns me a little. But overall, I see this as a long term hold, as I expect Trinity to ride an improved US economy to more growth & profits.
I've bet on the railroad industry in general, especially CNI. But TRN complements this very well. In the end, I bet on great companies that are cheaply valued. Trinity is now at an excellent value. I am considering buying more.
It looks like it is a result of Greenbrier (GBX) reporting earnings Monday night that weren't very good. From the sound of it most of their troubles are of their own making. They had a big drop in railcar sales, problems in ramping up production of tank cars, increased costs in Wheels, Repairs, and Parts, and margin issues. They did mention weakness in demand for intermodal railcars. TRN is a better run company but Wall Street sells first and asks questions later. We have to see if TRN is seeing any weakness in orders when they report earnings.
there was a report that said the industry had its first decline in oil tanker orders a few weeks ago. I am long TRN , I think long term it will rebound. Too late to sell for me although I think we will get a bounce off the 36 level (again). PE is certainly low enough. Plus S&P praises the stock with 5 stars.