Nice gain on GWR since last post
I posted about Genesee and Wyoming Railroad back in July of 2007. At that point in time I really liked the management outlook on the company and highlighted the insider purchases.
I kept my eye on GWR for the following few months but never made a purchase. After looking at the chart today there were some great buying opportunities in the late summer and right at the beginning of the year sell-off. Purchasing around $26 anywhere from August to early January would have yielded a 20% gain, not too bad for holding a few months.
The catalyst in the move was a better than expected earnings for the end of 2007. Revenue increased 14%, they also benefited from currency conversio (dollar devaluation).
The reason I took a second look at GWR is I’m looking for a stock to write covered calls against, and GWR might be a great opportunity. I hope to post a scenario in an upcoming post.