BUZZ- Railcar companies gain after US, Canada announce new standards

Fri May 1, 2015 12:09pm EDT
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** Shares of companies that manufacture railcars and equipment for freight jumped after the U.S. and Canada announced new oil railcar regulations

* Greenbrier Companies up 5 percent at $60.59; shares of Trinity Industries up 3.7 percent at $28.10. American Railcar Industries up 2.4 percent at $54.33

* Westinghouse Air Brake Technologies up 5.8 percent at $99.50 and reached an all-time intraday high of $100.49, with volume above its 10-day moving average volume

* All four extended gains after the news as volume picked up

* JB Groh, D.A. Davidson & Co. analyst, who covers Greenbrier said, "It's extended a pretty healthy railcar cycle for several additional years just due to the fact that there's new regulations."

* Under the regulations, tank cars built after Oct. 1 must have thicker hulls, full-height headshields, thermal protection, and improved pressure valves