CN invests in Nova Scotia

Article Excerpt

CANADIAN NATIONAL RAILWAY CO. $152 is a buy. The company (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 655.6 million; Market cap: $99.7 billion; Price-to-sales ratio: 6.0; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.cn.ca) operates Canada’s largest railway. Its 29,900-kilometre network stretches across the country, and passes through the U.S. Midwest to the Gulf of Mexico. The company has acquired an undisclosed stake in the Cape Breton & Central Nova Scotia Railway, which has 233 kilometres of active track. It also connects with CN’s main line in Truro. The line’s parent company, Genesee & Wyoming, discontinued service on most of the line in 2014 due to declining freight demand. However, a rising population and new real estate developments in Sydney could draw more ships to that city’s port and spur demand for rail service. CN Rail is a buy. buy. …