Portec Rail Products, Inc. (PRPX)

lllchicalll (80.12) Submitted: 8/8/2008 3:24:47 PM : Start Price: $10.90 PRPX Score: -5.04

stats geek

jwm8592 (< 20) Submitted: 6/18/2008 3:31:17 PM : Start Price: $12.15 PRPX Score: -10.74

As oil cost continue to skyrocket up and above the $5/gal mark, you will see more distributor networks utilizing the rail systems across the country. This company is a supplier to those companies, and as the rail industry increases their production so will PRPX.

JohnnyiPhone (< 20) Submitted: 6/13/2008 7:52:40 AM : Start Price: $11.46 PRPX Score: -6.33

Member of the "Mini-Cap Monsters."

Sqwii (< 20) Submitted: 5/31/2008 7:40:40 AM : Start Price: $11.91 PRPX Score: -6.03

This will go up, pencil

njmiles03 (86.96) Submitted: 5/30/2008 10:47:22 PM : Start Price: $10.00 PRPX Score: +12.39

Railroad play.

Griz29 (74.59) Submitted: 5/21/2008 1:28:20 PM : Start Price: $10.54 PRPX Score: +4.61

HR6003, if passed, could cause a big surge of changes in the American railroad industry. Part of the bill will penalize freight carriers for delaying Amtrak. This and other new regulations are going to drive demand for current and future Portec products.

PaintEater1 (68.07) Submitted: 5/1/2008 9:55:56 PM : Start Price: $11.55 PRPX Score: -2.82

Portec sells products to railroads. Railroads are setting record profits and are upgrading all their lines. Just makes sense that Portec will continue to do well.

deuspecuniae (66.22) Submitted: 4/25/2008 5:19:12 PM : Start Price: $11.56 PRPX Score: -3.75

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.

steviemc51 (84.30) Submitted: 4/18/2008 12:52:20 PM : Start Price: $11.56 PRPX Score: -4.00

rail

pencils2 (99.68) Submitted: 4/17/2008 2:12:05 PM : Start Price: $11.59 PRPX Score: -6.06

Business: Portec Rail Products, Inc.
Nasdaq: PRPX

Portec Rail Products, founded in 1906, manufactures, supplies, and distributes rail products including rail joints, data management systems, rail anchors, and freight car securement systems in the U.S., Canada, and the United Kingdom.

Reasons to be interested:

1. Record gas and oil prices continue to make railroads the next best option for transporting goods when put against the trucking industry - which suck up gas and aren't at all economical when compared to freight transportation. Portec Rail Products is in a great position to benefit from the increasing trend to railroads as long as management makes wise decisions, which shouldn't be too much to expect given that most of the company's executives and directors have been with the company for at least ten years and have quite a bit of experience in the industry. Management owns 36% of the company's outstanding shares.

2. Since 2003 Portec's cash flow production has steadily increased, standing at $8.93 million in 2007. The company rarely brings on debt and for the most part the company's cash flow production has fueled growth. In the most recent quarter earnings grew at a very respectable 33% and margins increased as well. An interesting side note is that stock options do not dilute the company's shares as we are used to with most companies, for the past three years the share count has stood at 9,600,000 and hasn't budged.

3. Ever since going public in January 2004 the company has paid a consistent dividend every quarter, not missing a single quarter or ever lowering the dividend. Currently the dividend stands at 2%.

Main risk:

1. Portec Rail Product's balance sheet isn't especially strong with $4.27 million in cash and $16.33 million in debt. This is certainly a manageable amount, but if the company and/or industry start to face greater challenges, Portec would probably be in a difficult position to continue expansion.

mmatur (< 20) Submitted: 4/14/2008 2:15:20 AM : Start Price: $11.50 PRPX Score: -7.80

The US cities mass transit systems are in terrible shape. Soon there will need to be some major improvements made on these systems.

RoscoeAC (< 20) Submitted: 4/10/2008 12:09:24 AM : Start Price: $11.32 PRPX Score: -4.73

Railroad supplier

lalakskss (< 20) Submitted: 4/9/2008 3:31:54 PM : Start Price: $11.44 PRPX Score: -5.69

The demand is going to be there. Railroads are going to be seen as an ever appealing option for freight in the near term over trucks. It's gonna happen.

rz49 (74.19) Submitted: 4/3/2008 4:16:05 PM : Start Price: $11.25 PRPX Score: -2.78

I hear the train a coming,,, coming round the track

lb1951 (56.13) Submitted: 3/5/2008 8:40:39 PM : Start Price: $10.76 PRPX Score: -2.56

rail maintainence small--should be bought out

RandomGuy123 (63.49) Submitted: 7/7/2007 6:11:03 AM : Start Price: $12.47 PRPX Score: -3.43

PRPX seem to be making a lot of intelligent acquisitions and have what appears to be some promising technologies in the works, including an automatic rail lubrication system and rail stress sensor. They have been increasing sales at a steady clip over the last three years, and although 4Q06 earnings fell short due to acquisition related charges, 1Q07 results were strong. Their operations are centered in the US and Canada, but they recently began operating in the UK as a result of one of their acquisitions, and stated their intentions of diversifying into the rest of Europe and Asia on their 2006 10K. Everyone knows about Buffet's bets on the railroad industry, and since then, it has become very hard to find a good railroad play which hasn't run up 50%. Although PRPX is 40% above it's 52 week low, it's still 10% below it's 52 week high. Railroad freight demand is expected to grow in the long term, and PRPX is a good play on that growth.