On a high volume down day in the market. That's kind of odd. Apparently the gig boys not selling the stock in mass today. Stock is under only slight distribution as of today as well.. C- in IBD where C is neutral. So, while the drop is getting large here and the market is now not working bullishly for the stock either, its not like everyone is stampeding for the exits. In fact there has been only one above average volume down day since the the drop below the 50-day and two since the recent top at 86. So a silver lining for the 'bag holders' I'd say.
My avg price is a little less than 45. Double the position here and the average price is near 35. Action the last two days (initial dip, then a significant rise) is suggestive of a possible bottom? Stock actually up a bit today on above average volume, though volume was quite a bit higher on the previous 3 down days. Could be a dead cat bounce, but buyers seem to be testing the waters in the last two trading days. It's awfully tempting to pull the trigger here, but holding off for now based on trend, which has not been much of a friend of late.
Seems like it has gone down enough, but no actual sign of an uptrend yet. So still a potential falling knife at this point. As much as I would like to pull the trigger and double my position here, can't bring myself to do it without a reversal of the trend in volume over several days backed by higher oil prices. Holders are on balance still bailing at this point, rationally or otherwise. Nice dead cat bounce off the early low today, though. Unfortunately still down 4 percent on the day this afternoon.
All the DJ blather and promos - and limited playlists to boot. Its almost unlistenable now. The DJ's are so dumb, after they play a song like 'Stairway to Heaven,' they'll say, 'That was Led Zepplen with 'Stairway to Heaven.'' What was their first clue? We've only heard all the songs they play over and over a zillion times already! Want to improve it 100 percent immediately? Get rid of all the DJ's and promos and just play actual music, not the same few pop songs over and over and over.. like some kind of commercial radio station or something.
Many stocks sport high prices for a considerable with no profit. Other things matter more, like growth rate and overall outlook. The PE will come down more into line mathematically as the profits increase rapidly from quarter to quarter.
The stock went from upper 30s to lower 90s in less than two months. New highs by Christmas from the mid to upper 70s would not be entirely shocking, especially like you say, given the season and hot nature of the products.
Well, it HAS a PE. More than you can say for AMZN or INVN, just to name two fairly well-known names that have zero or negative earnings.
Probably will close around 77 tomorrow after big boys step in and support the stock at about the 50-day moving average.
Greenbrier urges action; recent train derailments, Lac-Megantic findings underscore need for safer tank cars now
LAKE OSWEGO, Ore., Oct. 9, 2014 /PRNewswire/ -- The Greenbrier Companies, Inc. (GBX) continued its call for prompt regulatory action to require safer tank cars, in response to recent freight train derailments involving flammable liquids...break...
"As recent derailment events have illustrated, the urgency of upgrading the safety of the North American tank car fleet is obvious. Suggestions that industry requires six, seven or even up to 10 years to fully enhance the puncture resistance of tank cars are simply wrong. The rail supply industry can move faster than that and we will. Greenbrier and others are already making necessary investments to address this need," Furman added...
Give GBX credit for highlighting the safety issues involved, though of course it is self-serving for the company. TRN seems relatively silent so far by comparison.
Add to that now tumbling crude prices and possible effect on oil E&P's and a general market correction. But the above rules story seemed to start the big drop below the 50-day, and all downhill since.
Greenbrier, Trinity Dive On Oil Tank Car Rule Fight
Investors Business Daily 10/1/14
Greenbrier and other rail car makers sold off Wednesday after oil and railroad industry groups asked for more time to retrofit old cars to ship crude by rail.
The American Petroleum Institute and the Association of American Railroads late Tuesday urged the Transportation Department for more time to retrofit rail cars.
DOT in July proposed beefed-up safety rules for tank rail cars built after Oct. 1, 2015. Existing cars would get two more years to comply.
API President Jack Gerard says that the aggressive timeline "could harm consumers by disrupting the production and transportation of goods that play major roles in our economy, including chemicals, gasoline, crude oil and ethanol."
The industry groups want at least six years to revamp or replace the older cars, noting an already large backlog.
But Greenbrier (NYSE:GBX) says the timetable is "tight but achievable." The rail car maker has invested millions to retrofit up to 2,040 cars a year vs. 600 today.
Greenbrier shares fell 10% to 65.91. Trinity Industries (NYSE:TRN) lost nearly 8% to 43.12.
Currently Trinity 34 percent off high and 26 percent below 50-day EMA
Currently Grienbrier 36 percent off high and 27 percent below 50-day EMA
Follow us: @IBDinvestors on Twitter | InvestorsBusinessDaily on Facebook
I put CN on ignore long time ago. Not a real person. Some kind of weird spam machine. You will not get an answer from 'her.'