CP earns vote of confidence

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD. $99 is your #1 Conservative Buy for 2022. The company (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 929.7 million; Market cap: $92.0 billion; Price-to-sales ratio: 7.7; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.cpr.ca) transports freight over a 23,700-kilometre rail network crossing Canada as well as the U.S. Midwest and Northeast. U.S.-based activist investor Bill Ackman, through his Pershing Square hedge fund, now owns 2.8 million shares of CP. He also owns forward contracts to buy a further 12.0 million shares. That would raise his total exposure to 14.8 million shares, or 2% of the total outstanding. Ackman originally acquired CP shares in 2011 and used that position to install the late Hunter Harrison as CEO. Under Mr. Harrison’s leadership (as well as his successor Keith Creel), CP streamlined its operations and improved the way it puts its assets to work. The activist sold his original shares in 2016 for a substantial profit. This new stake reflects…