Topic: How To Invest

The Successful Investor Hotline – Friday, July 29, 2022

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $100.97, 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 company is now in the process of merging with U.S.-based railway Kansas City Southern. The cash-and-shares deal was worth $28 billion U.S. (as of December 14, 2021). 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 final regulatory approval in the first quarter of 2023. Meantime, thanks to re-opening of the economy and higher shipping rates, CP’s revenue in the three months ended June 30, 2022, rose 7.2%, to $2.20 billion from $2.05 billion a year earlier. That beat the $2.19 billion consensus forecast. If you…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.