Canadian Pacific Railway Ltd. $67 - Toronto symbol CP

CANADIAN PACIFIC RAILWAY LTD. $67 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 153.3 million;Market cap: $10.3 billion; SI Rating: Above average) recently acquired 40 new locomotives, but mechanical problems have hurt the reliability of its fleet. Bad weather, rising fuel costs and an unfavourable regulatory ruling could also put pressure on CP’s first quarter earnings. Despite these setbacks, CP’s earnings in 2008 should still grow about 9% to $4.72 a share. The stock trades at 14.2 times that figure. CP Rail is a buy.

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