CP

A holding company is a company that owns all or a substantial part of a variety of different businesses. These businesses may be private companies, or publically traded. Holding companies may own all, or a majority or a minority, of companies in which they invest. The one thing most holding companies have in common is that they trade for less than the combined value of their holdings. This “holding company discount” is a well-known phenomenon in finance. It represents a special kind of hidden asset and potential profit for investors in holding companies. When holding companies sell assets or break themselves up into their constituent parts, much if not all of the discount may disappear. In other words, holding companies can usually sell their assets for fair market value, rather than at a discount. In addition, fair market value may turn out to be be more than analysts figured they were worth. Even without a break-up, buying a holding company at a discount to its asset value puts more assets to work for you for each dollar you invest....

CANADIAN PACIFIC RAILWAY LTD. $232.62 (Toronto symbol CP; Shares outstanding: 164.2 million; Market cap: $38.5 billion; TSINetwork Rating: Average; Div. yield: 0.6%; www.cpr.ca) has reported record first-quarter results. In the three months ended March 31, 2015, the company earned $375 million, up 49.4% from $251 million a year earlier. Per-share profits jumped 59.2%, to $2.26 from $1.42, on fewer shares outstanding. Revenue rose 10.3%, to $1.67 billion from $1.51 billion. CP saw strong gains from shipping grain, fertilizers, coal, forest products, chemicals and consumer goods. That offset fewer shipments of crude oil, automotive products and metals....

CANADIAN PACIFIC RAILWAY LTD., $240.18, Toronto symbol CP, gained 3% this week after reporting record first-quarter revenue and earnings. The company earned $375 million in the three months ended March 31, 2015, up 49.4% from $251 million a year earlier. Per-share earnings jumped 59.2%, to $2.26 from $1.42, on fewer shares outstanding. These results exclude unusual items, such as a foreign-exchange loss on CP’s U.S. dollar-denominated debt and severance costs stemming from a recent restructuring. On that basis, the latest earnings beat the consensus estimate of $2.19. Revenue rose 10.3%, to $1.67 billion from $1.51 billion, matching the consensus forecast....

p>CANADIAN PACIFIC RAILWAY LTD. $232 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 164.2 million; Market cap: $38.1 billion; Price-to-sales ratio: 7.1; Dividend yield: 0.6%; TSINetwork Rating: Above Average; www.cpr.ca) transports freight over a 22,000-kilometre rail network between Montreal and Vancouver, as well as hubs in the U.S. Midwest and Northeast. The U.S. supplies 40% of its revenue. CP’s shares have soared 236.2% since we made it our Stock of the Year for 2012, when it was trading at $69. That’s mainly due to a major restructuring that has improved its efficiency with new locomotives, better tracks and software that optimizes train loads and speeds.

Speedier service boosted results

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ISHARES S&P/TSX 60 INDEX ETF $21.90 (Toronto symbol XIU; buy or sell through brokers; ca.ishares.com) is a good low-fee way to buy the top stocks on the TSX. The units are made up of stocks that represent the S&P/TSX 60 Index, which consists of the 60 largest, most heavily traded stocks on the exchange. Expenses are just 0.17% of assets.

The index mostly consists of high-quality companies. However, it must ensure that all sectors are represented, so it holds a few we wouldn’t include.

The index’s top holdings are Royal Bank, 7.8%; TD Bank, 7.1%; Valeant Pharmaceuticals, 5.6%; Bank of Nova Scotia, 5.4%; CN Railway, 4.8%; Suncor Energy, 3.6%; Enbridge, 3.6%; Bank of Montreal, 3.5%; BCE, 3.2%; Manulife Financial, 3.1%; Canadian Natural Resources, 2.9%; Trans- Canada Corp., 2.8%; Brookfield Asset Management, 2.7%; CIBC, 2.6%; and CP Rail, 2.5%.

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Up 243% since it was Canadian Stock of the Year in 2012, CP Rail continues to reap the rewards of a very successful restructuring plan.

CANADIAN PACIFIC RAILWAY LTD. $232 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 164.2 million; Market cap: $38.1 billion; Price-to-sales ratio: 7.1; Dividend yield: 0.6%; TSINetwork Rating: Above Average; www.cpr.ca) transports freight over a 22,000-kilometre rail network between Montreal and Vancouver, as well as hubs in the U.S. Midwest and Northeast. The U.S. supplies 40% of its revenue. CP’s shares have soared 236.2% since we made it our Stock of the Year for 2012, when it was trading at $69. That’s mainly due to a major restructuring that has improved its efficiency with new locomotives, better tracks and software that optimizes train loads and speeds. Speedier service boosted results...

Exchange traded funds (ETFs) are set up to mirror the performance of a stock market index or sub-index. They hold a more or less fixed selection of securities that represent the holdings that go into the calculation of the index or sub-index. ETFs trade on stock exchanges, just like stocks. That’s different from mutual funds, which you can only buy at the end of the day at a price that reflects the fund’s value at the close of trading. Prices of ETFs are quoted in newspaper stock tables and online. You pay brokerage commissions to buy and sell them, but their low management fees give them a cost advantage over most mutual funds....

Building on the strong performance of its shopping mall empire, RioCan REIT unlocks more property value in a deal with Hudson’s Bay.

Every Monday we feature “A Stock to Sell” as our daily post. With every stock or investment we recommend as a sell, we give you a full explanation of why we advise against investing in it at this time. In today’s article we have two sells, both from an industry which has a great deal of promise for the future, but hurdles to overcome in the present.

3D Systems Corp. (symbol DDD on New York; www.3dsystems.com), makes and services 3-D printers and provides print materials.

The company’s sales rose 23.0% in the three months ended September 30, 2014, to $166.9 million from $135.7 million a year earlier, though its earnings per share fell 30.7%, to $0.18 from $0.26, on higher research and marketing spending.

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