Topic: How To Invest

The Successful Investor Hotline – Friday, November 24, 2023

Article Excerpt

CANADIAN PACIFIC KANSAS CITY LTD., $97.81, Toronto symbol CP, is your #1 Conservative Buy for 2023. The company took its current form on April 14, 2023, when Canadian Pacific Railway Ltd. completed the acquisition of U.S.-based railway Kansas City Southern. CP paid $31 billion U.S. in cash and shares for KCS. At that time, CP investors owned 72% of the merged company, with KCS shareholders holding the remaining 28%. The new CPKC ships freight over a 32,190-kilometre rail network. That line runs mainly between Montreal and Vancouver, with links to hubs in the U.S. Midwest and Northeast. With the addition of KCS, the new company also connects with important hubs and ports on the U.S. Gulf Coast and in Mexico. While CP mostly owns the land under its tracks in Canada and the U.S., it operates its lines in Mexico under a government concession that expires in 2047. As a result, it’s vulnerable to changes in Mexico’s transportation policies. The government of Mexico now wants…