Canadian National Railway (USA) (NYSE:CNI)

CAPS Rating: 5 out of 5

Operator in the North American rail industry. It is the only railroad which crosses the continent east-west and north-south, serving ports on the Atlantic, Pacific and Gulf Coasts while linking customers to all three NAFTA nations.

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Player Avatar JollyViking (70.00) Submitted: 4/7/2010 10:01:01 AM : Outperform Start Price: $28.22 CNI Score: +75.79

Warren Buffet likes railroads. With the possible exception of sail-driven cargo ships (and, at last count, there weren't that many of those), railroads are the most fuel-efficient way of shipping anything more than a couple of hundred miles. As hydrocarbon-based fuel gets more expensive, rail transport will be in increasing demand. Furthermore, the Obama administration has prioritized the updating of the U.S. rail infrastructure. So the sector has good long-term prospects. As far as CNI goes, it's the best-run rail company on the continent. It is perhaps a bit overvalued at the moment, but I'll own this stock until I retire, collecting those yummy, yummy dividends.

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