We are now recommending a stock called Trinity Industries (TRN). Trinity is the largest manufacturer of railway cars in North America and is sure to profit handsomely from the upcoming boom in the railway industry. Of course, that's not the only reason we're buying it, and we will be giving you considerably more details in your upcoming issue of TCI. For now, just know that Trinity is a relatively small company, much more leveraged and volatile than Burlington, which makes this recommendation a more aggressive/speculative buy. But over the next three to five years, we expect this stock will do very well.
We still have no reason to doubt our predicted recovery in stock prices. Valuations remain modest, and all the key indicators we pour over each week continue to look good.
Naturally, we remain on the lookout for surprises. But with small cap stocks ahead of the pack, utilities having made a recent high, and no divergences anywhere in the market, the S&P and the Dow appear to be on their way to new highs.
Curiously, the big question now is the same one we pondered last year. Will the impending high be the final peak of this bull market, or will the transports and other major averages confirm that there may be one more after this?Read more...
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