Saul, I went back through your monthly summaries to figure out what happened to GBX. I followed you (somewhat blindly at first I admit!) into it and was surprised when I didn’t see it on your latest end of month summary. Meanwhile I was adding to it, mistakenly thinking you were too. But now I realize you got out at end of May. I know it was just a small position but I was surprised you didn’t add to it I guess. I know you said it wasn’t your style, but any other thoughts on why you exited that one or have you put it out of mind ?
Hi Joe, it really is out of mind for me now. As I wrote, it was just a little dalliance for me as I am usually not a value investor. As I remember, I was buying it, not with any hopes of any growth any time soon (it was predicting declining sales and earnings for at least the rest of the year), but because it was so cheap. I just went back to companies which seemed more future oriented. That may have been a mistake. I make plenty of mistakes.
Briefly GBX moved on rail car orders for getting Canadian tar sands and North Dakota shale oil to market. Now new pipelines are being built to deliver the North Dakota oil. Canadian oil is sitting cause it’s not cost effective at $40-47 per Barrel.
I looked at GBX but declined as I think they’re in a cost containment mode. This article briefly explains…
Hope that helps
Community Fool - ticker guide for
MTZ (pipeline builder) risky but diverse and making a run in next year or so.
OKE (midstreamers in natural gas & NGL)
SRCL & PRLB (not energy but also industrial companies)
Long all but SRCL