Topic: How To Invest

The Successful Investor Hotline – Friday, September 16, 2022

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $97.35, 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 week, railway unions in the U.S. agreed to a new contract. While a strike would have little direct impact on CP’s operations, aside from delaying transfers of cargo from other railways, it could have shut down U.S.-based railway Kansas City Southern (KCS). The company is now in the process of merging with KCS. 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. CP…