A long position in Greenbrier looked like a hot trade, but so far all it’s done is burn Mike Murphy. Now what?
Murphy of Rosecliff Capital made the fateful call back on April 9th. At the time his thesis was that the stock had been oversold despite solid fundamentals.
“Earnings were solid,” he said. “They’ve been getting killed recently. No exposure to coal so I think this company can rally a lot from here.”
Unfortunately, since he suggested a long position, jitters about global growth have sent shares of this rail and barge builder down more than 10%.
What’s the trade, now?
“My opinion hasn’t changed. I’m still long," says Murphy on Monday April 23rd. "Coal has really hurt the space a lot but Greenbrier is really focused on intermodal cars and recent data says intermodal orders have spiked. I still believe Greenbrier is cheap and that the stock is going to rally.”