Canadian National R.R. (CNR.TO)

CN-T or CP-T? He owns CN and CSX in the U.S. He likes CN for its north-south traffic to the States--it's safer. CP is east-west (more Canadian). CN will benefit from shipping out Alberta oil to California. It costs $12 per barrel to ship it, but the low WCS cost makes it still worth it.

CNR vs CPR. He likes both CNR and CPR. They are bell weathers on the Canadian economy. There are high barriers to entry. It is an oligopoly between the 2 names. You can buy now and likely see double digit increase. With the recent pullback, a good entry point.

They met yesterday's earnings. They've come a long way in past years to become the best railroad in its class. This has outperformed the TSX in the past 16 of 22 years. Trades at 17x earnings. Expects earnings growth. Definitely
consider it, especially for the long term. He respects it.

Good balance sheet, well-positioned and growing dividends. Doesn't know if crude by rails will surprise earnings, though it's a tailwind.

There's limited competition for them yet sustainable demand. Crude by rail helps given the lack of pipelines. Well-run with an extensive rail network. (1.7% dividend, Analysts' price target: $120.07)

She likes rails and owns CN Rail. Long-term, rails will do well, gaining business in crude oil. Rails will do well if the economy does well. They see good volume growth and pricing.

Railroads are drivers of the economy. They move the goods. The US economy is strong and so the railroads are strong. CN has a monopoly on the port of Prince Rupert, which is the closest port to Asia. CN will also be a big beneficiary of the lack of new pipelines in Canada. CP and CP are both gearing up to move more oil. This is more expensive than moving oil by pipelines, but it is necessary at this time.

A great company and they have executed their strategy well. They have been moving more oil and sees them as a good long term hold. Not necessarily the time to buy.

It's had an uptrend since 2014. Trade issue resolution with the U.S. will have a huge impact on CNR. A solid name. Stick with it.

CP-T or CN-T? – They are both good to hold as the economy is improving. CP-T is the resource based railway. CN-T may be hurt more by current NAFTA talks, due to its focus on automotive shipments.

In March it was down to $90. Since then it has done nothing but go up. He has a model price of $131.66, or a 14% upside. Any sort of pull back you want to buy it. He would love to buy it at $87.

A great story. Trading at 18 times earnings. Dividend yield 1.6%. it was a tough industry for many years, but it is much better now. Hard to replicate their network. They are overcoming their customer service problems. (Analysts’ price target is $117.09)