Long-Term Pick Trinity Industries, Inc. (NYSE: TRN) Soars After Judgment Reversal.

Shares of Trinity Industries, Inc. soared more than 10% today on news of the reversal of a $663M judgment against the company.

You can visit my analysis of why I think TRN is good long-term hold for the serious dividend investor here (the stock is up a little over 36% since I first made mention of it on my blog):

A Street (Rail) Car Named Desire (Trinity Industries)





A Stock even “MADMEN” Would Love.

As I said in the MY INVESTMENT PHILOSOPHY page on this site, I do not consider myself a GROWTH investor nor do I consider myself to be a VALUE investor. I keep reading and researching about different business and industries in an attempt to find those which I believe would make good long-term investments whether or not they fit into GROWTH of VALUE buckets. I have always been fascinated by advertising/marketing, and if my love for finance and investing weren’t so strong, I would have probably tried my hand at marketing.

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Watching: Alimentation Couche-Tard

Quebec-based convenience store operator Alimentation Couche-Tard  (TSX: ATD.A, ATD.B) continues its consolidation drive with the recent acquisition of Irish convenience store and gas bar chain Topaz.

While I am generally not a fan of growth by acquisition, I must admit I am impressed with what Couche-Tard management has done while it consolidates what it says is an extremely fragmented industry (i.e. local convenience stores). The Company has managed to integrate most if not all of its acquisitions pretty smoothly and maintain financial discipline both in buying and controlling / paying down debt levels once deals are done.

Key to the Company’s strategy when acquiring convenience store networks is implementing best-in-class processes, improved controls, and a greater selection of private label and prepared food offerings…all of which tend to lead to both higher top and bottom lines.

Couche-Tard shares are currently changing hands at more than 30 times TTM earnings, a trailing yield of about 20bps, and have rallied about 30% YTD.

What do you think…do you like Couche-Tard for the (very) long-haul at these levels? I would rather wait for a pullback.


Getting A Great Deal At The Warehouse Club

You’d have to be living under a rock to not know about the amazing growth of warehouse club shopping. I mean everyone has heard of Costco, right? However, many investors may not have heard of PriceSmart, Inc. PriceSmart is to the Caribbean and Central America what Costco is to the United States: A great place for great deals on hundreds of everyday items.

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Add another dish to the Buffett

Warren Buffett’s Berkshire Hathaway wrote its biggest check – a whopping $37B including debt – in history last week with a deal to acquire industrial parts maker Precision Castparts. This deal is another step in what looks, to me, like a deliberate strategy to remake Berkshire into a more industrially focused business as opposed to its current form known for its massive insurance operations and equally massive stock portfolio.

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