Topic: How To Invest

The Successful Investor Hotline – Friday, November 22, 2019

Article Excerpt

CANADIAN NATIONAL RAILWAY CO., $120.20, Toronto symbol CNR, is still a buy. The company operates Canada’s largest railway. Its 32,200-kilometre network stretches across the country. It also travels down through the U.S. Midwest, connecting Canada to the Gulf of Mexico. This week, the union representing 3,200 of CN’s workers (13% of its total workforce), including conductors, trainpersons and yard workers, went on strike. The company prepared for the strike by winding down certain operations and having management personnel operate trains and terminals. Due to CN’s importance to the Canadian economy—it transports half of the country’s grain as well as significant volumes of crude oil, iron ore and forestry products—previous strikes did not last long. That’s because Ottawa would quickly pass back-to-work legislation. This time, however, passing the necessary legislation could take longer as Parliament will not resume sitting until December 5, 2019. Separately, ongoing trade tensions between the U.S. and China have hurt volumes on CN’s network. In response, the company plans to lay off…