Topic: How To Invest

The Successful Investor Hotline – Friday, January 14, 2022

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $97.33, 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. This is the fourth year in a row we’ve picked CP as our #1 Conservative stock. Due to the vital role it plays in Canada’s economy, the stock rebounded strongly from its pandemic-induced lows in 2020 and hit new highs in 2021. CP is now in the process of merging with U.S.-based railway Kansas City Southern. The cash-and-shares deal was worth $31 billion U.S. (as of August 9, 2021). To put that in context, CP’s market cap (the total value of all outstanding shares) is $90.5 billion (Canadian). CP investors now own 72% of the merged company, with KCS shareholders holding the remaining 28%. The company expects to receive final regulatory approval in the fourth quarter of 2022. After it completes the purchase, the company will change…

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