Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
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Harness the Wind and Potential Gains of +45% with this
Industrial Manufacturer |
Published:
August 18, 2008
Trinity Industries (NYSE: TRN, $36.60) is a top supplier of several different industrial
product lines, including railroad cars, highway girders, inland
cargo barges, and propane tanks -- all of which happen to be
doing pretty well at the moment.
However, its most promising division is involved in the
production of structural wind towers, specialized coatings, and
other accessories. The company is among a handful of recognized
leaders in the market for these giant tubes. With production
facilities capable of handling towers for turbines up to 2.5
megawatts, Trinity products can be seen in wind farms throughout
a number of states, including Texas, Oklahoma, and Iowa.
This facet of the firm's business is growing rapidly amid heated
demand. Wind tower revenues have spiked 35-fold over the past
four years, soaring from just $11 million in 2004 to an expected
$390 million this year. Better still, order backlog over the
past 12 months has surged from $200 million to $1.6 billion --
representing a highly visible stream of future business.
Within the next five years, management is forecasting that
wind tower revenues could double again to $800 million. And
that comes before last
month's announcement from the Texas Public Utility Commission
authorizing $5 billion for new wind power
transmission lines. Much of that cash will find its way into the
pockets of power line companies like Quanta Services (NYSE: PWR). But the
expansion of Texas' wind power program (already the nation's
largest) can do nothing but lead to more business for
Dallas-based Trinity.
The firm's other
business segments also merit a closer look.
Trinity is the nation's largest rail car manufacturer, with its
cost-efficient Mexican plants rolling out 40 new cars per day.
The firm is also the country's leading supplier of propane
tanks, inland barges, and highway guardrails. With demand
outstripping manufacturing capacity, customers are awaiting
shipment of $4.7 billion worth of orders on backlog.
The firm's fleet of 41,000 railroad cars available
for lease is 99.6% utilized, and the average lease has over five
years remaining. These revenues are locked in and will provide
some stability regardless of what happens on the product sales
side. But future orders should remain robust, considering
700,000 of the nation's 1.6 million railcars are more than 25
years old and the replacement cycle has already begun.
With a balanced mix of old and new, revenues have jumped +17%
over the past year to $3.9 billion, pushing earnings up +25% to
a record $3.72 per share. And just this week, shares soared
after Trinity reported second quarter earnings that shattered expectations and raised its full-year earnings outlook. Sales
and profits in the firm's wind tower unit shot up +58% and
+117%, respectively.
Based on an upward trajectory in all of the firm's business
lines, I have calculated a fair value of $53 per share, implying
attractive upside potential of +45%.
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Nathan Slaughter
Editor
Half-Priced Stocks, The ETF Authority
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in-depth guidance on today's leading value opportunities, plus educational guidance, please subscribe to
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Investing Doesn't Get Any Easier Than This |
Stock picker Amy
Calistri's strategy is as simple as investing gets -- just one idea
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