While I am nowhere in the same league as the geniuses at ValueAct Capital Management, I must admit that I did spend the majority of last Friday smiling upon reading the news that a fund associated with ValueAct Capital Management had taken a 6.8% stake in U.S. rail car manufacturer Trinity Industries (NYSE: TRN) on the belief that the company’s securities were “undervalued” and “represented an attractive investment opportunity”.
Readers of this blog will remember that I highlighted TRN as an attractive investment opportunity towards the end of October 2015 (A Street (Rail) Car Named Desire (Trinity Industries)), and while some may argue that my timing is off (share price change in TRN since I first made mention up until July 22, 2016 was negative 15.15% (excl. dividends), I take it all in stride and will continue to smile a bit longer on the news of ValueAct’s stake 🙂
P.S. shares in TRN closed up nearly 11% last Friday.