Jul. 8 at 12:31 PM
$RAIL No position currently, but did well in the past on a long hold. IMHO, a great order backlog, but do consider: 1) Can a company that has some operational struggles such as production inefficiencies, labor issues, & supply‑chain friction execute well with a 1,900‑unit multi‑year order and 3,000 Q2 orders? 2) Impact to margins 3) Risk of dilution if need to raise capital needed for production. Also, keep in mind that Q2 orders don’t instantly convert to revenue, with the possibility that cash flow lags production. Also, to quote the last earnings call, " “Deliveries and revenue will be significantly back‑half weighted.” Executive leadership is calling out risks as good managers do to plan options and CYA for negatively impacts to shareholders. Encouraging that
$RAIL was added to the Russell indexes. However, the trading action for a thinly traded microcap with wide spreads can be be misleading and upward/downward moves volatile. Best to all, do your own DD!
