- Page 2/3
- Next Page
Good idea. She owns CNR. Together, CP and CNR have a duopoloy within Canada plus operations in the US. Rails have not performed that well this past year. Tariffs won't impact directly, but risk is that economic slowdown would affect volumes. CNR trades ~18x forward PE, and wide discount to CP, so she'd pick CNR.
Indicated a move of head office to US, but doesn't have to do with tariffs. They're global, yet Canada provides only a small percentage of earnings. Management believes a move would encourage more US-based indices to include it, thereby broadening its potential shareholder base.
Could be just because they've done so well. Valuations are stretched to the higher end. Might also be uncertainty as to impact of tariffs. She read an article about some companies waiting for IPOs, as they're unsure how receptive capital markets will be. One-year returns are up 40-50+%. Nice rally post-election on promises of less regulation.
With the money laundering scandal, she trimmed. Still has US operations, so will benefit from capital markets activity. Can focus on its Canadian operations. Kept it because of its very attractive valuation and yield. Can still grow in other areas; US retail represents only 25% of earnings. Very strong balance sheet, can use it to buy back stock.
On her watchlist. Have to have a very long-term view on uranium to buy this name. Long-term contracts, which don't reflect uranium spot price. Nuclear resurgence, positive on the sector. Price still ahead of itself. She has indirect exposure through BIP.UN, which co-owns Westinghouse with CCO.
The Firefly acquisition made her sell the whole position; US market is very competitive, plus this will require capex. Balance sheet very levered. Yield is over 12%; market anticipates a dividend cut, and wants them to so they can move on. Dividend under ongoing review by the board. Any cut might see further drop in the stock, and you can reassess the company and its valuation at that time.
Better income stocks to own out there. When you buy for income, you want good coverage, visibility, and increases. This name doesn't provide any of that.
Canadian-based, but less than 20% of revenue from Canada. Attractive and achievable 3-year targets to grow margins, earnings, revenue base, and free cashflow. Strong demand for services. Not exposed to tariffs. Very strong balance sheet to take advantage of M&A opportunities. She'd buy here.
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.