The Successful Investor Hotline – Friday, January 23, 2015

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $218.78, Toronto symbol CP, has agreed to form a 50/50 joint venture with DREAM Unlimited Corp., Toronto symbol DRM. This new business—called DREAM Van Horne Properties—will redevelop several of CP’s real estate holdings, including surplus land near its rail lines in Toronto, Montreal, Edmonton and Chicago. This venture should help CP unlock some of these assets’ hidden value. Meanwhile, CP earned $460 million in the quarter ended December 31, 2014, up 36.1% from $338 million a year earlier. Earnings per share jumped 40.3%, to $2.68 from $1.91, on fewer shares outstanding. That beat the consensus estimate of $2.58. Revenue rose 9.5%, to a record $1.76 billion from $1.61 billion, also beating the consensus forecast of $1.74 billion. CP saw strong revenue gains from shipping grain, fertilizers, crude oil, forest products, metals and consumer products. That offset fewer shipments of automotive products and exported goods. CP continues to benefit from its plan to improve its efficiency with new locomotives, better tracks, and…