CP
CANADIAN PACIFIC RAILWAY LTD. $124 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 174.6 million; Market cap: $21.7 billion; Price-to-sales ratio: 3.8; Dividend yield: 1.1%; TSINetwork Rating: Above Average; www.cpr.ca) suffered two derailments in the past month that resulted in oil spills. One of these incidents was in Minnesota, and the other was in northern Ontario. However, the spills were minor, and the cleanup costs should not have a large impact on CP’s earnings.
The company should keep benefiting from rising demand for trains to ship oil. That’s because a lack of new pipelines has forced more producers to ship their crude by train. CP will probably ship 70,000 carloads of oil this year, up 438.5% from 13,000 in 2011.
CP Rail is a buy....
The company should keep benefiting from rising demand for trains to ship oil. That’s because a lack of new pipelines has forced more producers to ship their crude by train. CP will probably ship 70,000 carloads of oil this year, up 438.5% from 13,000 in 2011.
CP Rail is a buy....
CANADIAN PACIFIC RAILWAY LTD. $124 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 174.6 million; Market cap: $21.7 billion; Price-to-sales ratio: 3.8; Dividend yield: 1.1%; TSINetwork Rating: Above Average; www.cpr.ca) suffered two derailments in the past month that resulted in oil spills....
When investors base buy and sell decisions on short-term market forecasts, they often experience notably poor investment results, or even lose money. This may come as a shock to them. In hindsight, it may seem that past market trends, up or down, should have been easy to foresee. But in fact, nobody consistently foresees these trends. That’s why most investors hurt their returns if they let short-term market forecasts have much of an impact on their investment decisions. This year, investors may feel tempted to follow the long-time saying that you should, “Sell in May and go away.” This saying is based on the observation that, over the years, stock prices have often gone sideways or dropped between May and October. This year, the sell-in-May rule may seem particularly timely. The market was stronger this year than many observers expected, so they may see it as over-due for a setback. The problem with this kind of analysis is that it fails to distinguish between causation and correlation. The pattern of falling stock prices between May and October may simply be a coincidence, like the pattern that may appear in a series of coin tosses or spins of a roulette wheel....
CP is up around 65% since we recommended it in March 2012. That was just after we made CP our “Stock of the Year” for 2012 in The Successful Investor, our conservative growth advisory. CP’s CEO, Hunter Harrison, is now cutting 25% of the company’s workforce as part of a major restructuring aimed at improving its efficiency....
BLACKBERRY INC., $15.09, Toronto symbol BB, rose 2% on Thursday after the company reported much better-than-expected earnings. In its 2013 fourth quarter, which ended March 2, 2013, BlackBerry earned $114 million, or $0.22 a share (all amounts except share price in U.S. dollars). These figures exclude charges related to a restructuring plan that includes cutting the company’s workforce and simplifying its product lines. On that basis, the latest results easily beat the consensus forecast of a $0.34-a-share loss. A year earlier, BlackBerry lost $118 million, or $0.23 a share. Revenue fell 35.9%, to $2.7 billion from $4.2 billion. That’s mainly because customers were waiting for the company to launch new smartphones that use its BlackBerry 10 software. The company began selling these devices in Canada, the U.K. and other markets in February 2013. It started selling them in the U.S. on March 22, 2013....
CANADIAN PACIFIC RAILWAY LTD. $113 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 173.9 million; Market cap: $19.7 billion; Price-to-sales ratio: 3.5; Dividend yield: 1.2%; TSINetwork Rating: Above Average; www.cpr.ca) is improving its efficiency with new locomotives and software that optimizes train loads and speeds.
CP’s earnings fell 15.1% in 2012, to $484 million, or $2.79 a share. In 2011, the company earned $570 million, or $3.34 a share. However, if you disregard costs related to CP’s recently announced plan to cut 25% of its workforce, as well as writedowns of locomotives and other assets, its earnings per share would have risen 37.8%, to $4.34 from $3.15. Revenue rose 10.0%, to $5.7 billion from $5.2 billion.
The company’s operating ratio worsened to 83.3% from 81.3% a year ago. However, its restructuring should cut this figure to around 70% in 2013.
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CP’s earnings fell 15.1% in 2012, to $484 million, or $2.79 a share. In 2011, the company earned $570 million, or $3.34 a share. However, if you disregard costs related to CP’s recently announced plan to cut 25% of its workforce, as well as writedowns of locomotives and other assets, its earnings per share would have risen 37.8%, to $4.34 from $3.15. Revenue rose 10.0%, to $5.7 billion from $5.2 billion.
The company’s operating ratio worsened to 83.3% from 81.3% a year ago. However, its restructuring should cut this figure to around 70% in 2013.
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Canada’s top two railways continue to focus on cutting costs and streamlining their operations. That puts them in a better position to handle changing demand for the cyclical products they transport, such as coal, oil and grain.
CANADIAN NATIONAL RAILWAY CO....
CANADIAN NATIONAL RAILWAY CO....
RESEARCH IN MOTION LTD., $13.01, Toronto symbol RIM, has launched two smartphones powered by its new BlackBerry 10 software: the BlackBerry Z10 uses a 4.2-inch touchscreen interface while the BlackBerry Q10 features a smaller screen and a physical keyboard. The company will start selling the Z10 in Canada, the U.K. and other countries in the next few days. However, it won’t launch the new phone in the U.S. until March. Investors fear that this delay will further erode the company’s U.S. market share. That’s the main reason why the stock fell 26% this week. RIM will launch the Q10 in April. Unlike other smartphone makers, RIM also sells software that helps businesses and governments encrypt mobile email messages and other sensitive data. The company has used its expertise in this area to create BlackBerry Balance, a feature that lets the new phones easily switch between business and personal modes. BlackBerry Balance should help RIM satisfy its corporate customers’ security needs while letting individuals enjoy personal services, such as music, movies and games....
CANADIAN PACIFIC RAILWAY $114.75 (Toronto symbol CP; Shares outstanding: 173.4 million; Market cap: $19.9 billion; TSINetwork Rating: Average; Dividend yield: 1.2%; www.cpr.ca) has announced that it will let U.S.-based Phillips 66 (New York symbol PSX) use its tracks to transport crude oil from North Dakota’s Bakken shale region to a refinery in New Jersey....