Trinity Industries, Inc. (NYSE:TRN)

CAPS Rating: 4 out of 5

The Company manufactures and sells railcars and railcar parts, inland barges, concrete and aggregates, highway products, beams and girders used in highway construction, tank containers and structural wind towers.

Recs

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Player Avatar rbitrage (40.31) Submitted: 6/22/2014 9:48:59 PM : Outperform Start Price: $42.02 TRN Score: -17.42

Trinity makes the rail cars that move the newly fracked petroleum out of places like North Dakota to other places where it can be refined. Current administration is loath to approve a new pipeline so this material has to go by rail. Recently the press has seized on explosions caused by cars not built for more volatile oils. It is only good news for Trinity because they need to make more cars. Trinity only leases cars so the railroads can keep them for 100 years and still be paying on them. If the fuel eventually gets to a port, Trinity benefits again because they make the US barges required by the Jones Act to ship petroleum port to port.

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