CP
p>CANADIAN PACIFIC RAILWAY LTD.$108 (Toronto symbol CP) was our top pick for 2012 at $69. Since then, the stock has gained 56.5%. We’ve long admired CP, but bad weather and poor efficiency have held back its earnings and stock price in the past few years.
It seems activist investment firm Pershing Square shared our view, and in 2011 it became CP’s largest shareholder(it now holds 14.2%). We felt Pershing would push management to improve efficiency, and help unlock more of CP’s value. That’s partly why we made CP our #1 buy for 2012.
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It seems activist investment firm Pershing Square shared our view, and in 2011 it became CP’s largest shareholder(it now holds 14.2%). We felt Pershing would push management to improve efficiency, and help unlock more of CP’s value. That’s partly why we made CP our #1 buy for 2012.
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Dear Inner Circle member, As you probably know, last week we singled out Teck Resources. $36.70, symbol TCK.B on Toronto (Shares outstanding: 586.0 million; Market cap: $21.5 billion; www.teck.com), as our #1 Stock for 2013 for The Successful Investor. Our Stock of the Year has turned out to be one of our readers’ favourite features, even though you might say it goes against one of our key investing principles: you always need to diversify. Nobody gets it right on every one of their stock recommendations or purchases. Consequently, to succeed as an investor, you need to build a balanced portfolio of mainly well-established companies, with holdings spread out across most if not all of the five main economic sectors....
CANADIAN PACIFIC RAILWAY LTD.$108 (Toronto symbol CP) was our top pick for 2012 at $69. Since then, the stock has gained 56.5%.
We’ve long admired CP, but bad weather and poor efficiency have held back its earnings and stock price in the past few years.
It seems activist investment firm Pershing Square shared our view, and in 2011 it became CP’s largest shareholder(it now holds 14.2%)....
We’ve long admired CP, but bad weather and poor efficiency have held back its earnings and stock price in the past few years.
It seems activist investment firm Pershing Square shared our view, and in 2011 it became CP’s largest shareholder(it now holds 14.2%)....
TECK RESOURCES LTD., $36.93, Toronto symbol TCK.B, is our “Stock of the Year” for 2013. Resource companies are highly cyclical. Teck fell to just $3.35 in March 2009 as the credit crisis hurt its ability to refinance the $9.8 billion U.S. in short-term loans it took on the year before as part of its $13.6-billion (Canadian) purchase of Fording Coal. At that time, Teck’s market cap (the value of all outstanding shares) was just $1.6 billion. However, rising commodity prices helped it find new lenders, and Teck rose as high as $65 in January 2011. The stock has moved down since then due to the slowing global economy. However, we feel the company’s high-quality, long-lasting reserves and potentially higher commodity prices in 2013 make it a particularly attractive buy right now....
PLEASE NOTE: One week from today, on January 11, 2013, just after the stock market closes at 4:30 p.m. Toronto time, we will reveal our #1 Canadian Stock of 2013 to subscribers of The Successful Investor. Our #1 pick for 2012, CP Rail, has surged 54% in the past year and is still on the rise. You can be among the first to hear about our #1 Pick for 2013. Because you’re a loyal subscriber, we are happy to offer you a bargain-priced, no-risk introduction to The Successful Investor. It gives you the first month—and the 2013 Stock of the Year—FREE. But you must act now. Click here. CHEVRON CORP., $110.50, New York symbol CVX, has agreed to purchase 50% of a proposed liquefied natural gas (LNG) terminal in Kitimat, B.C., in a series of transactions. The deal includes related pipelines and gas properties in the province. The company will purchase the 30% stakes held by ENCANA CORP. $20.40, New York symbol ECA, and EOG Resources Canada Inc. Following these deals, Chevron will sell 10% to APACHE CORP., $83.20, New York symbol APA. As a result, Chevron and Apache will each own 50%....
PLEASE NOTE: One week from today, on January 11, 2013, just after the stock market closes at 4:30 p.m. Toronto time, we will reveal our #1 Canadian Stock of 2013 to subscribers of The Successful Investor. Our #1 pick for 2012, CP Rail, has surged 54% in the past year and is still on the rise. You can be among the first to hear about our #1 Pick for 2013. Because you’re a loyal subscriber, we are happy to offer you a bargain-priced, no-risk introduction to The Successful Investor. It gives you the first month—and the 2013 Stock of the Year—FREE. But you must act now. Click here. LEON’S FURNITURE LTD. $13.55, symbol LNF on Toronto, has received approval from shareholders of The Brick (symbol BRK on Toronto) for its $700-million takeover of that company. The purchase will nearly double Leon’s market cap. The Brick operates 230 stores across Canada, while Leon’s has 76 outlets in every province except B.C. Leon’s and The Brick will continue to operate as separate chains....
RIOCAN REAL ESTATE INVESTMENTTRUST $27.80 (Toronto symbol REI.UN; Unitsoutstanding: 297.3 million; Market cap: $8.3 billion;TSINetwork Rating: Average; Dividend yield: 5.1%;www.riocan.com) is raising its monthly distributionby 2.2% with the January 2013 payment, to $0.1175a unit from $0.115.
The new annual rate of $1.41 yields 5.1%....
The new annual rate of $1.41 yields 5.1%....
CANADIAN PACIFIC RAILWAY LTD. $97 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 173.0 million; Market cap: $16.8 billion; Price-to-sales ratio: 3.0; Dividend yield: 1.4%; TSINetwork Rating: Above Average; www.cpr.ca) plans to cut 25% of its workforce as part of a major restructuring plan aimed at improving its efficiency. CP is also increasing the length and speed of its trains. The plan should cut CP’s operating ratio from 74.1% in the third quarter of 2012 to 65% in 2016. (Operating ratio is calculated by dividing regular operating costs by revenue—the lower, the better.)
In addition, CP has suspended its plan to build new rail lines that would have served coal mines in Montana and Wyoming. That’s because power plants are switching to cheaper natural gas, which has hurt demand for coal. As a result, CP will take a $180-million charge. That’s equal to 80% of the $224 million, or $1.30 a share, that it earned in the third quarter.
CP Rail was our #1 buy for 2012. It’s still a buy.
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In addition, CP has suspended its plan to build new rail lines that would have served coal mines in Montana and Wyoming. That’s because power plants are switching to cheaper natural gas, which has hurt demand for coal. As a result, CP will take a $180-million charge. That’s equal to 80% of the $224 million, or $1.30 a share, that it earned in the third quarter.
CP Rail was our #1 buy for 2012. It’s still a buy.
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Canadian Pacific $98.57, symbol CP on Toronto, was our 2012 #1 pick for The Successful Investor at $69. It’s up 42.9%.
WestJet (see left) was trading at $14.10 when we made it our #1 Stock of the Year for 2011. It was a year late getting started, but it’s now hitting new highs. Alimentation Couche-Tard $49.82, symbol ATD.B on Toronto, was our #1 pick for 2012 in Stock Pickers Digest at $30.55. Its shares are now up 63.1%. Canadian Pacific $98.57, symbol CP on Toronto, was our 2012 #1 pick for The Successful Investor at $69. It’s up 42.9%....