CP still has lots of appeal

Article Excerpt

We recommended Canadian Pacific Ltd. in our very first issue in January 1995. At that time, CP held a variety of businesses beyond railways, such as hotels, coal, and oil and gas. We saw these as undervalued assets. In 2001, CP unlocked some of this hidden value by spinning off these businesses as separate firms. As a stand-alone railway, we still felt CP had plenty of room to improve. A prominent American hedge firm shared our opinion, and in 2012, it installed former CN Rail chief executive Hunter Harrison as CP’s new CEO. Thanks to a major costcutting plan, CP hit a record high of $248 in October 2014. The stock has moved down lately on slowing volumes of grain, oil, coal and other commodities. However, CP’s improving efficiency sets it up for more gains as the economy rebounds. CANADIAN PACIFIC RAILWAY LTD. $190 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 161.3 million; Market cap:…

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