CP Rail still has room to rise

Article Excerpt

CP is now up almost 105% 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 and cutting costs. Those measures will also help it adapt to new rail-safety regulations in the wake of the July 6 train crash in Lac-Megantic, Quebec. CANADIAN PACIFIC RAILWAY $151.56 (Toronto symbol CP; Shares outstanding: 175.1 million; Market cap: $26.4 billion; TSINetwork Rating: Average; Dividend yield: 0.9%; www.cpr.ca), transports freight between Montreal and Vancouver and connects with hubs in the U.S. Midwest and northeast. In the quarter ended September 30, 2013, CP’s revenue rose 5.7%, to $1.53 billion from $1.45 billion a year earlier. Earnings jumped 144.7%, to $331 million, or $1.88 a share, from $224 million, or $1.31. CP’s operating ratio…