The Greenbrier Companies (GBX)

This tiny manufacturer of railcars and maritime barges, etc is the little engine that could. This company was left for dead in March when it was rumored that GE was going to cancel it's huge multi-year contract for rail cars that represents over 3/4's of Greenbrier's backlog. The stock fell to 1.86, and since then the CEO, William Furman, took action, slashing costs, laying off workers, idling production facilities, shifting production to the more stable maritime business, and most importantly paying down over 102 M in debt. That is almost 1/2 it's market cap paid down in the past year, with 32 M of debt paid off this quarter alone. This was possible in large part due to a strategic investment by WL Ross and Co., but that makes me even more bullish. If Wilbur Ross is putting his money in here, and Warren Buffet is buying an entire railroad, then they must think the sector is undervalued, so I am sticking with GBX in spite of the volatility, and lack of interest by Wall Street. In fact, I am using the volatility to add to my position, and will sell only when Wall Street falls in love with the sector and bids it up past fair value.

EPS 09: -1.21 p/e:0
EPS 10: .15 p/e: 66.66

I don't think Buffet's buy of Burlington Northern signals anything good at all. That man's strategy his whole life has been buy low and hold forever (sort of). It's the "buy low" part that I have a problem with. I think Buffet took his opportunity here in a beaten down industry that will continue to be beaten down as we go into 2011. Consequenty, I don't think this is a buy just yet.

Lots of insider buying and I figure it will plod along and appreciate over time.

This company recently bought out Meridian Rail and is in transition.

Their stock has been down in cyclic times and has always comeback. They had a 4% dividend paid out even in this time of recession and previously had 8% dividends paid out each quarter consistently in the year before. They have managers and vice presidents with over 25 years of experience in the industry and they have all weathered the down cycle and know that it will pass and they will be on top again. Combined with the recession it took a big dive but that only means when it's the boom time again the stock will be headed up with a bullet. My inexperienced opinion from interpretting the history, is that this is a buy and hold in order to make a very very lucrative profit. This company has crushed the competitors in the area and bought up the others and is always looking to the future and building on it's strengths and management.

You will not regret this investment, rail is here to stay and this company is vital to it's continuation.

I think that the energy advantages of shipping by rail will help this stock long term. Good price to buy at for a long hold.

Railroads are finally coming back, and GBX provides a range of freight cars and components, as well as servicing and refurbishing their cars and cars for other companies. It also leases cars, and manufacturers ocean-going barges.. Sounds like a very well-rounded company.

Greenbrier is owned by CSX. Greenbrier owns many short line railroads and they are making record profits and will continue as long as fuel prices are high.

High gas prices will lead to shift towards rail for moving freight.

Upward pressure on oil will continue to fuel the railroad sector's continued climb this summer, and the upcoming confirmation of an American recession this summer along with a continuation of the dollars fall here at home will only accelerate the integration of business and railroad to offset higher energy prices.

speculative

I'm going with the fast money railroad tip. This one was flagged as a winner of the group

This company is positioned right in the middle of an alternative energy boom in north America and the dire need for rail shipping fuel around the country and around the world. It's a bedrock company for the next few years until it reaches a zenith in capitalization.

Working to even out their workflows beyond cyclical rail

railroads are cheaper to transport with th eincrease in gas

Warren Buffet just bought other railroads

they have paid down a lot of debt recently, which i feel will help bolster the bottom line . estimates are for 3.00 a share in 08. i feel the company is in good position with a good looking balance sheet.

The railroad has grown since pops has been around,and will continue to do so like it or not,and those who supply for it will also grow.Slowly or fastly makes pops no never mind,because all I have is time.

Makes all sorts of railroad cars, repairs old ones, leases new ones. Gotta have something to haul ethanol and cars.