CANADIAN NATIONAL RAILWAY CO. $86 - Toronto symbol CNR

CANADIAN NATIONAL RAILWAY CO. $86 (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 431.5 million; Market cap: $37.1 billion; Price-to-sales ratio: 3.7; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.cn.ca) will repurchase up to 5.8 million of its shares from a private seller at a discount to the market price. It aims to complete this purchase by March 31, 2013.

This move is part of the company’s plan to buy back up to 18 million of its common shares, or roughly 4% of the total outstanding, by October 28, 2013. Share buybacks raise earnings per share and other per-share calculations, and give the remaining shareholders a larger stake in the company.

CN Rail is a buy.

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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