Canadian National R.R. (CNR.TO)

He is looking to buy this. It has come into his model, but he needs a little bit of discretion as to when to pull the trigger. It has seen some short-term support levels at around $106, which brought in a lot more selling down to around $103. If we get the procyclical bump in the market, he would stick around with this. Expects some weakness next week. Seasonality kicks in around September.

Rails in general are interesting businesses in that they are very unique assets. They are very economically sensitive. If you believe that an eventual fiscal stimulus will come to the US, names like this will do very well. He is a little more skeptical on that. In general, this is fully valued.

He likes this, but would like an entry point that started in the $90 area. Wait for this to drop under $100.

One of the lowest dividend yields that he holds at 1.5%. Likes the company long term, but it is pretty rich at these prices. The dividend has been growing at mid-teens over the last 5 years. This company has great prospects ahead of it. He has been trimming his holdings recently. He would like to see the dividend at 2% before accumulating more.

This has had quite a run and wouldn’t buy it at this time. All the rails are expensive. He would like to see this pull back at least 5%-8%.

The economically sensitive sectors in the market rested from December through May. Since May, we have seen a reacceleration in financials, industrials and transports. He likes transports. The rails have a real exposure to North American economy. This one has great north-south exposure, and has been one of the best performing rails in North America.

Just guided 10% EPS over the next 5 years. They claim they have a competitive advantage in technology, that will allow them to stay ahead of the competition. Great balance sheet. Very good growth. He models 12% EPS growth over the next couple of years. The only thing is, it is very expensive.

Any pullback on this is a “must buy”. It keeps going straight up. Management is fabulous.

He made some profit on it. It is facing the same problem as the FANGs. It is not a bad stock. A lot of stuff needs to correct, however. It needs to correct back to its trend line.

The rails are good. They are typically a little expensive in terms of valuation, but they are a great way to play this industrial theme that is on. You would be hard-pressed to find a much better run company than the rails, and there is really only a choice of 6. He would buy a little bit every day and buy little more on any pullback.

This is underpriced compared to Canadian Pacific (CP-T), and he would give this one the edge. It will probably go to $118.51.

Has lightened up his positions in this. It got to a point where it was reasonably expensive. Thinks this has pretty well done all it can to improve its operations. With the new pipelines going in, the oil side looks like it is not going to be as accretive to the bottom line. It looks a little expensive for railroad. This is not the time to step in.

One of the big questions having to do with this rail is NAFTA. A lot of what it does depends on commodity movement and commodity prices. It is a profitable company and is doing quite well. He wouldn’t buy it at this price.

This is her pick in the rail space. They had a really strong quarter, and the stock moved on that. Wait for a drop in price to under $100 before stepping in.

A bit of a tough entry point, because it is doing so well. He would want to pay something like $95-$97. If you own, it is still OK to Hold.