Canadian National R.R. (CNR.TO)

She likes the rails but would like to see more consistency in the quarterly reports and more momentum. The dividend is 2 1/2% which is not great. There is upside in the fundamentals and it should turn around for the long term. It scores 6 out of 10 on the value scale.

Sold late last year, due to worries partly on tariffs and partly on management's ability to create value. Didn't like that it was buying back stock using debt, or yo-yo projections (up) versus guidance (down). Heavy capex business. Growth hasn't been there with pandemic, tariffs, inflation.

Probably some good value here. If you have a long-term investment horizon, not the worst idea to have a 1-2% position in the Canadian rails and just leave it alone. Doesn't have a strong conviction either way right now on CNR vs. CP.

He got stopped out, broke support. Can't be all that bullish on it until it returns to above $150.

Something she's looking at now. Higher yield, lower valuation. Has come up significantly in the past week or two with the market run. If it went back down to $125, she'd definitely be interested. Stable, not easily replicable. Consistent cashflow that supports the dividend. Still the cheapest way to transport goods. Prefers it to CP.

Is watching it after falling to current levels. The rails track GDP levels. CN boasts a slightly lower PE and higher ROE than CP, but are paying much more in price-to book than CP, but you get more. Overall, it evens out slightly in CP's favour. You can buy some shares now and more if it falls further.

Negatively impacted by trade. Economically sensitive. Likes the business. Margins and cashflow are great for the rails. Constructive longer term, once tariff issues get sorted. He prefers CP.

It's been a struggle holding this for years. The dividend continues to grow. With more trade, will be more transport by rails which is 300% more efficient than truck. Trades at a cheap 17x PE. Add some now, more later. If we don't trade with the US, we will be shipping to the coasts to export abroad.

CP has more catalysts from the Kansas City merger, and a better growth rate. Both are getting more attractive. If we get the all clear on the economy, both names will be decent entry points. Though optimistic, he's still a bit afraid, and wouldn't step in just yet.

Critical piece of the supply chain. Still remains a dominant player in the vast network linking Canada and the US. Rough Q4 from labour strikes and extreme weather. Yield ~3.4%.

Stable, long-term asset, but facing margin headwinds from rising costs and lower productivity. Increased competition from CP-KSU merger.

Small position. Not a great-looking chart. Thinking of selling. A potential candidate to raise cash in his portfolio.

As part of the CP/CNR oligopoly, it will always make money. Not even AI can make rails obsolete anytime soon. Very capital intensive -- operating costs, unionized workers, equipment. So FCF as percentage of revenue is not that amazing. Even with pullback today, still trades ~18-20x PE. Not overly expensive, but not cheap either.

Probably OK if you have a long-term view and want reasonable stability, grow as fast as the economy, get some efficiencies along the way, and collect the dividend. But it's not for him.

Owns both, core holdings. No one's building any more rails. Cheaper to ship commodities by rail than any other way. If an economic slowdown, traffic and volumes will slow down but it's still a pretty steady business. 

If the trade war goes on, everything gets more expensive and these two will be impacted negatively. But these events are always temporary. Trade wars are not good for inflation or the economy with US mid-term elections only 2 years away. He's trusting that rational minds will prevail.

Stock didn't perform the way he wanted it to, he sold. Fundamentals weren't going in the right direction. Warned on earnings many times. Bought back stock with debt. Cashflow not strong. Stock's fallen a lot, could be interesting to a new buyer, as he's bullish on the stock and on rails long term.

Good idea. Together, CP and CNR have a duopoloy within Canada plus operations in the US. Rails have not performed that well this past year. Company guiding to high-single to double-digit topline growth. Tariffs won't impact directly, but risk is that economic slowdown would affect volumes. Trading ~18x forward PE, and wide discount to CP.