CANADIAN PACIFIC RAILWAY LTD. $174 - Toronto symbol CP

CANADIAN PACIFIC RAILWAY LTD. $174 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 175.7 million; Market cap: $30.6 billion; Price-to-sales ratio: 5.0; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.cpr.ca) has started charging oil producers a special surcharge for each older DOT-111 tanker car they use on its rail network.

CP hopes the charge will encourage these customers to upgrade to models with thicker hulls. That would make it less likely that oil will spill and catch fire in the event of a crash.

The company is also considering selling $2 billion worth of surplus real estate. These funds would help CP pay for its plan to buy back 3% of its shares over the next year.

CP Rail is a buy.

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