Volume II, Issue 7 (posted to website on January 6, 2017)
Notes From Author: This Issue was originally sent to Newsletter subscribers on November 29, 2016 and included a full research report on Time Inc. (TIME), more details on which can be found HERE, and it also included the below paragraph related to The Greenbrier Companies, Inc. (GBX).
Thoughts On GBX:
Moving on to GBX, the stock closed at $38.45 last Friday, after reaching a new 52-week high of $38.75 earlier in the day, and it is now trading at approximately $37.80. I increased my price target from $33.00 to $37.00 in a Newsletter Issue that I sent to you all on April 14, 2016 (GBX closed at $30.57 that day, including the impact of dividends) and it is now trading above my price target. As a result, I no longer view the stock's risk/reward to be attractive and I am changing my "rating" on the company from "buy" (or bullish) to "neutral." The stock has performed well since I first wrote about it on April 4, 2016 and proposed that the $24.00 - $26.00 range was a good entry point and, I think that now is a good time to change my "rating."
This conclusion was made after I evaluated GBX's prospects and decided that even though the stock could certainly continue rising it no longer offers an attractive risk/reward opportunity with a 1-2 year time horizon.