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Freight America (NASDAQ:RAIL) is known for making coal cars. It is something the company has done since 1901, so investors should be forgiven if they have missed recent diversification efforts. This move into non-coal railcars has strengthened the company's overall business, but it comes when the cyclical railcar industry is entering a downturn. Luckily, RAIL's balance sheet is strong, and it should emerge from the cycle more profitable than ever. Investors can collect a solid dividend and should see a total return close to 70% at the mid-point of the next cycle, which could be sooner than many Wall Street experts believe. Oh, and if coal use improves more than expected, returns could be even better...

My most recent article is now available on Seeking Alpha Pro. 

Just in time for Valentines Day, the latest edition of the Tuzz Report is out! This month's edition features a cyclical company that is suffering through a downturn. However, there's no need to worry as the company has a rock-solid balance sheet and should emerge from the downturn stronger than ever. The company's 2.5% yield should keep investors happy if the rebound takes longer than expected, but I see a handful of catalysts that could make their wait short. Finally, insiders are voting with their wallets by purchasing nearly $500,000 in stock over the last year. 

I have written extensively about dozens of companies on Seeking Alpha, but strangely enough it's this article that I wrote about finding great value ideas that has received the most attention. It is especially relevant as we start the new year:

How Do You Find Value Investment Ideas?

I've got the fire roaring, eggnog in hand, enjoying some downtime during the hectic holiday season. The New Year is approaching, which inevitably has me looking back over the investment year that was. There were some successes and, as always, there were some failures. I still flinch while thinking about my ill-timed "deworsification" into the Russian stock market.

One question I always try to answer is, "How exactly did I find my best ideas?"
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In this month's Tuzz Report I try to explain how Paul Blart : Mall Cop and the Flowbee combine to form the thesis for a fantastic investment opportunity. The featured company has had deteriorating operations for a number of years and many investors have given up on a turnaround. However, a rebound appears imminent as a poor business segment that has masked overall improvement in the company's core business, stabilizes. This small-cap value stock has the potential to make investors very happy in the new year. 

I always include a January Effect Screen in my newsletter for subscribers, but I eliminate stocks that do not trade $100,000 a day to ensure there is enough liquidity to allow for a sizeable investment. I realize there are many investors who can operate in a world with much lower liquidity, so I ran a screen that included companies which would have passed the screen, except for low trading volume. The screen has performed very well over the one-year time frame, returning 10.2% in the 2014-2015 time period, doubling the Russell 2000 Index return of 5.1%.  The screen returned 47.26% versus the Russell 2000, which returned 19.48% in the 2015-2016 period.

The January Effect is a theory that small-cap stocks, which have traded down on the year, rebound strongly in January of the next year. This is explained largely by investors selling their underperformers of the year to harvest tax losses, which consequently, push stock prices down.

Read more ...

This month’s Tuzz Report features a company that seems to finally be seeing the light after years of losses. The CEO and Chairman roles are being split and new board members are entering the picture, each with impressive industry backgrounds that previous board members lacked. Best of all, the new Chairman nominee has been on the board of two other companies that were eventually acquired. Is this a step toward a lucrative buyout? Please see the newest issue of the Tuzz Report for details.

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