Topic: How To Invest

The Successful Investor Hotline – Friday, February 3, 2023

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $106.04, Toronto symbol CP, is your #1 Conservative Buy for 2023. 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 company is now in the process of merging with U.S.-based railway Kansas City Southern through a cash-and-shares deal. CP investors own 72% of the merged company, with KCS shareholders holding the remaining 28%. As of December 31, 2022, CP’s investment was worth $45.09 billion. 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 final regulatory approval in the first quarter of 2023. Meantime, CP’s revenue in the three months ended December 31, 2022, rose 20.7%, to $2.46 billion from $1.65 billion a year earlier. That beat the $2.45 billion consensus forecast. The revenue gain was due to higher volumes of grain,…