Going Off The Tracks With Greenbrier Company (GBX)

A long time ago, as I was searching for some good long term infrastructure plays when I came across The Greenbrier Companies ([GBX]{.small-caps}). Here’s what they do, from their company overview page:

The Greenbrier Companies, Inc. (Greenbrier) is engaged in designing, manufacturing and marketing of railroad freight car equipment in North America and Europe and a provider of railcar refurbishment and parts, leasing and other services to the railroad and related transportation industries in North America.

I work in the railroad business and I believe that railroads are going to be a big business in the next few years as we try to find more efficient ways of moving freight long distances. Depsite my rosy outlook for the industry, [GBX]{.small-caps}[]{.push-single}[’]{.pull-single}s stock chart stinks.

It looks like the stock has been in a downtrend and last week shares were down over 7% as Greenbrier ([GBX]{.small-caps}) took a big tumble on news that Ichan ended discussions with [GBX]{.small-caps} on a possible[]{.push-double} [“]{.pull-double}business combination” with American Railcar Industries Inc ([ARII]{.small-caps}).

After I read that tidbit of news I’m staying away from both companies. When Carl Ichan gets involved, you know that there are problems with the company! Carl is a smart guy but he’s out for himself.

GBX, 06/16/2008

[PS]{.small-caps}: If you ask me, [GBX]{.small-caps} is probably going to test the \$16.03 low back on Jan 23, 2008!

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