Canadian National R.R. (CNR.TO)

Has a Buy on this in the $71 range. If you currently have it, you should certainly hold it. This is one of the big beneficiaries of the increasing oil production. They make big money shipping oil and are getting better at it and costs are down.

The best rail in North America. Has a dividend growth profile. Leveraged to a number of different components to the Canadian economy. Not cheap, so you buy it on a dip.

Canadian National (CNR-T) or Suncor (SU-T)? He would choose Suncor based on the multiples that they sell at. He doesn’t own the railroads. (See Top Picks.)

Hasn’t been buying this one for a while because it was fully priced. Has pulled back a bit, and she is waiting for it to come back a couple of more dollars. Rails have done very well, and she is expecting a pretty good quarter because traffic has been quite good. They’re not cheap stocks anymore.

Better operating numbers than CP-T and always will do. Prefers CSX-T as it is one third cheaper than either of the Canadian ones.

In a long term upward trend, outperforming the market and at about its 20 day moving average. Seasonally it does well from Mid October to January. Any weakness over the next couple of weeks is a buying opportunity.

The trend is up. Sure it could pull back and correct. Higher highs and higher lows.

They have come down here, but not a heck of a lot. There is less risk with CNR-T than CP-T. Priced for perfection. People think there is no downside to these companies. Prefers CP-T.

This and CP are well overpriced so you should get a pullback. But over the next 3 to 5 years it will do well. Hold off and look at it down the way a bit.

CP-T and CNR-T both had huge runs. Some investors may have got carried away in the short term. Marginally prefers CP-T over CNR-T, but he would not look for huge gains in the short term. Thinks this is a stock you can put away and forget about.

(Market Call Minute.) Yield of about 1.3%, but it keeps making its dividend and the stock price does really well. Really well-run.

Canadian National (CNR-T) or Canadian Pacific (CP-T)? He thinks both of these look a little bit rich as compared to other transportation companies. If he was in the sector, it would be something like FedEx (FDX-N) or UPS (UPS-N).

Don’t add money to rails right now. They have been a phenomenal story until now. There is a limit to how far you can take these based on valuation alone. He would take profits right now in CP-T and hold CNR-T.

Valuations are historically high. There is decent earnings growth as long as the economy keeps going. There is not enough earnings growth to blow you away or be higher if you look at a PEG ratio. Because of this, he owns CXS (CSX-N) in the US, which is trading at about 2/3 only of the valuation of CNR and Canadian Pacific (CP-T).

22 times earnings, 12% revenue growth rate for this year, which is higher than other railways. Prefers it to CP-T, but would not buy either right now.