Canadian National R.R. (CNR.TO)

Very North American focused. North-South is their network path. As business picks up in North America, they benefit. Crude by rail has been great. In the past, their traffic has been as much as 25% lumber so as homebuilding picks up and lumber picks up this should be good. Chemicals are a big part of what they ship and as manufacturing goes through a little bit of a rebirth in North America because of low energy prices, he feels a lot of stuff is going to continue to be shipped by rail. Still a long runway in front of them.

(Market Call Minute.) Great Canadian growth story. Benefits from its scarcity value. Not cheap. He would Buy on a dip or would Hold. Good long-term core position.

We had a major uptrend but then went too far away above and he expects a correction with a test to the $55 level.

What do you think of Shorting this company? He does not think this is a Short. Assumes we are going to get the same kind of returns as we did in the last 12-18 months. Economy has improved, rail companies have infrastructure in place to take advantage.

Likes the rails. They are the beneficiaries of where we are in the cycle right now. You have to move more by rail. Most efficient operator in North America. Growth prospects are tied to where we are in the cycle and they are good. Oil by rail is big but we have had three derailments, however. Quality rail business. Prefers to US operators. There is a little room for expansion.

Closed at $58.83 and his model price is $70.71, a 20% upside. Like last August and September, the stock came back to a support level and before he would buy it, he would want that to happen again. If it came back to $52.92, a 40% upside, he would be a buyer. Best run rail in North America.

All rail stocks have done quite well. They are probably just growing into their earnings. Earnings will continue growing going forward because it is a softer play on the economy. They are doing crude now and also there is a very strong crop in Western Canada for wheat and grains. Would buy this on a general pullback.

4.5 times book value. Very, very expensive and extended. Not to say it will collapse, but there is risk in the rails to valuation. A beautifully run company. Exit at $48/$49 area.

Remains the best run and most efficient railway in North America. Are benefiting from an improving economy. Thinks there is further upside in the stock.

A great story and a great way to play the continuing growth in North America. It is fully priced. Would buy at $53-$55.

Railroads are a great business. All the investments that have been made were made many years ago and now they are just living off the profits. Lovely company that is generating massive free cash flow. A home run with their exposure to oil sands.

Just had a 2-for-1 split. 3^rd quarter had great numbers and the operating ratio is now down below 60%. Feels that rails are priced for perfection. If the whole market comes off with the taper, he would definitely be a buyer of this one. Try to get at $52-$53.

Has had a nice little pull back. He is a big believer that you want to own this one through thick and thin. A very important part of a core portfolio. A very well diversified company.

The problem from here is valuation on this and CP. US rails are cheaper and so he owns CSX at only 13 times earnings as opposed to almost 20. CSX is eastern US but trades with coal.

Sold his holdings a long time ago, but obviously too early. Feels the valuation at 19X earnings is too high, and if you own, he would consider selling.