Topic: How To Invest

The Successful Investor Hotline – Friday, August 19, 2022

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $106.14, Toronto symbol CP, is your #1 Conservative Buy for 2022. CP ships freight over a 23,700-kilometre rail network, mainly between Montreal and Vancouver. It also links to hubs in the U.S. Midwest and Northeast. The stock gained 5% this week after the U.S. Committee on Foreign Investment approved its takeover of U.S.-based railway Kansas City Southern. KCS operates a rail network of roughly 11,400 kilometres, extending from the U.S. Midwest and Southeast into Mexico. CP acquired the KCS shares in December 2021. At the time, the cash-and-shares deal was worth $28 billion U.S. CP investors now own 72% of the merged company, with KCS shareholders holding the remaining 28%. The company has deposited the KCS shares into an independent voting trust, which will continue to run that business while the U.S. Surface Transportation Board (STB) studies the purchase. CP expects to receive STB approval in the first quarter of 2023. The company has also agreed to a new two-year contract with…

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