Topic: How To Invest

The Successful Investor Hotline – Friday, March 25, 2022

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $103.32, 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 3% this week after the company and the union representing 3,000 conductors, engineers, and train and yard workers have agreed to settle their current labour dispute through binding arbitration. That move ended a two-day work stoppage. It’s unlikely the strike and the final union contract will have a significant impact on CP’s earnings, or its efforts to secure regulatory approval for the acquisition of U.S.-based railway Kansas City Southern. That 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…