Canadian Pacific Railway Limited (USA) (NYSE:CP)

calgary based

great leverage to commodities + Hunter Harrison

CP has been in the shadow of CNI for over a decade now, but appears about to move up. It holds a number of key lines, is less dependent on coal than many, and the rise of activists like Ackerman point CP towards a 10-15% expansion.

I hate to do it, but I'm thumbing down all the rail roads. My main reason is coal. With all these power plants switching to natural gas there will be less coal to ship.

With Bill Ackman putting pressure on the management and even proposing a new Board of directors, should be headed up!

They are overvalued here.

There is too much distrubance from new private equity partners.

I see a fall back towards 55 or so.

Canadian Railroad will continue to grow and profit as Asia and the USA purchase more Canadian raw materials.

UNDERVALUED

Good growth and earnings.

Railways have a huge advantage over trucks when it comes to moving freight because of increasing oil costs and environmental regulation. CP ships to Vancouver which is Canada's gateway to the Far East, which is going to be the engine of global economic growth for the next few decades.

Betting on increase trade on Pacific Rim and Commercial Alliances Network Map is well established.

follows nyse railroads

This is the lowest proportionally valued railroad company outside of the United States. Okay, it has exposure to the dollar, but it isn't too much, it has a reasonable dividend, low PE ratio, and I don't like China too much.

Here's the kicker though, if any country is ever serious about carbon dioxide emissions there is no more energy efficient way to transport goods and people than by rail. This is why Buffett likes railways. He doesn't care about whether it's better to be in solar or wind but he knows that the economies of scale that come with the railways are our best chance for efficiency.

i think an era of rail growth is on the way...slow progress being made, but it's coming.

This railroad has three ports covered (with the Pacific, Atlantic, and the Gulf). And the railroads in general have started to notice they move frieght around land using less fuel than trucks, and started advertizing this fact. I see only growth for railroads in general

economy is not looking good, volumes are down.

Good future earnings.

Canadian Pacific is poised to do well during the economic downturn and subsequent recovery, especially when contrasted against an incoming Obama administration. Left of center policy generally favors rail and disfavors large over the road trucks. Political policy will subtly, if not ought right favor rail for transport of freight and passengers in the coming years. Rail is perhaps the most cost effective means to transport products; locomotives are constantly being tweaked to better efficiency, and are less affected by winter weather. CP has an extensive network of tracks in Canada and down into the US heartland which is tied into the US Rail System. Additionally CP is situated to transport oil and oil sand within Canada as increased oil demand increases once again.

I like this stock