Positive
- Hiked dividend by 10%
- Earnings on a comparable basis were up about 24%
- Revenues were up 13%
- Results beat analyst expectations
- Falling $CAD caused US earnings to inflate
- Lagging fuel surcharges helped, given lower fuel costs
Negative
- Volume was down 9.8%
- Much of the earnings gain was attributed to the falling $CAD and the lagging fuel surcharges
I own competitor CP Rail (CP) within my non-registered account.
7 comments:
I have sold puts on both CNR and CP. Love both of them, great solid choices in this economy.
The Dividend Express rarely disappoints. I own both CNR & CP and it's surprising to examine the two companies and note their relative strengths. Even though CP has less exposure to the US CNR continues to outperform them. I think this is one of the best management groups of any CDN public company.
And here I wanted to add to my position under $40 (too slow!)
CNI (US ADR) has been one of my shinning stars. I agree with NurseB911, CNI is a very well-managed company.
Best Wishes,
D4L
I heard that the employment contract of Hunter Harrison (CEO) ends in December 2009. Has the company said anything about his future? Is he staying as CEO?
I agree this is a great company and the current economic downturn can provide good entry points.
Better companies, always beat better values. I learned my lesson not to focus solely on value metrics etc., as those that want to manage well and look to grow do better
The differences between CP and CNR should not matter much in the long term. What I like about CP is their tie ins with commodities and energy related goods. This is a long term developing market play as well as wide moat firm.
In the short term lagging fuel surcharges should help all transportaiton firms including UPS, FedEx, and US railroads.
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