Canadian National R.R. (CNR.TO)

This company is hauling Canadian oil and they are likely to double or triple their tank car hauling into the US. They are the ones that go all the way to the Gulf. Thinks this business will continue to grow for them for the next several years.

(Market Call Minute.) Stock has done really well. He is not in the rails at the moment as they seem a little bit rich.

Chart shows a gorgeous, longer-term, upper trend. Recently just broke to new all-time highs.

(A Top Pick Feb 8/12. Up 28.92%.) Have been very good at pricing and getting volume growth. Best operator in the industry. Increased dividends by 15% last quarter. Thinks they are taking shares from trucking and also have crude shipments now. Good exposure to the US housing recovery.

Has been a good stock. He compares Canadians to the US and they are becoming a little pricey. You may want to take some profits. There is a lot of good news in Canadian Railroads. He feels he should not have avoided this sector.

Best of class. Good long term record. 10-12% Grower and raised dividend for 17 consecutive years. It always appears fully priced. Not worried about Hunter Harrison leaving. Using CNR to move some of the oil out west is a solution not looked at last year.

Going up nice and straight. Hit an all time high intra-day. That is not a bad thing. It has momentum. It probably has some really good support about $92-93. Will participate in shipping oil by rail. You can’t go wrong.

(A Top Pick Jan 12/12. Up 19.38%.) Still likes. Well managed.

Chart shows the long-term trend is most definitely there but the price is coming closer and closer to the trend line. You always want to buy a stock when it gets near the lower trend line.

(Market Call Minute.) Sold his holdings recently.

Company has delivered very good traditional growth over the last couple of years. He would wait until the stock goes into the lower $80’s before buying. $92 target.

Most efficient railway in North America. Have roots going east and west as well as North and South, all the way to the Gulf Coast. More hinged to the US economy, which he thinks is important, then Canadian Pacific (CP-T). Good balance sheet. A billion dollars in free cash flow. Increased their dividend, 20% in 2011 and 15% this year and he expects a double-digit increase next year.

He is adding to new accounts as they come in. One of the hidden benefits is going to be the oil that is transported by rail. That business is not going to go away anytime soon because pipelines will take a while to build.

Stock has been dropping compared to Canadian Pacific (CP-T) and he doesn’t know why other than possibly people have been switching on the expectation that CP’s various ratios are going to improve. He still considers this one to be superior railroad.

16% of revenue is based on lumber and there is a pretty good movement on housing starts. This is also a low beta company. Great value. They are looking at doing a feasibility study for the Labrador trough (?). Also shipping some oil. Real good value, low risk play. 1.7% yield.