Canadian National Railway (CNI), which I first wrote about on July 30, 2009, at a price of $47.95, is making a bee-line to $80, and if you haven't already, now may be a good time to consider taking some profits with CNI if you're in near $48.

However, investors who can tolerate the risk can maintain their full CNI position, but keep in mind the journey to $90 may not be completed in 2011.

CNI remains one of best run railroads, bolstered by rigorous cost controls, Look for Canadian National's 2011 revenue to rise 8% to 10%, after a 20% to 25% surge in 2010, as both goods shipment and commodity transport recover; margins will likely increase this year, as well. Volumes also should rise 5% to 7% in 2011, after a double-digit gain in 2010.

"Once written off as a 'sunset' industry, North American railroads are making money hand over fist. In short, the railways are benefiting from a rising tide and the companies have a lot going for them," notes Canadian analyst Tom Slee.

The contributing editor with Internet Wealth Builder explains, "Here's a look at my newest recommendation, Canadian Pacific Railway (CP), as well as my long-time favorite, Canadian National Railway (CNI).

"Last year the six major carriers posted a 45% average growth in earnings as they booked increased volumes and increased rates.

Canadian National Railway (CNI), which I first wrote about on July 30, 2009 at a price of $47.95, appears set to test $70, and if you haven't already, now may be a good time to consider taking some profits with CNI if you're in at/near $48.

However, investors who can tolerate the risk can maintain their full CNI position, but keep in mind that the journey to $80 may not be completed in 2011.

CNI remains one of best run railroads, bolstered by rigorous cost controls, Look for Canadian National's 2011 revenue to rise 8-10%, after a likely 20-25% surge in 2010, as both goods shipment and commodity transport recover; margins will likely increase in 2010, as well. Volumes also should rise 5-7% in 2011, after a double-digit gain in 2010.

If you viewed the summer dip in Canadian National Railway (CNI), which I first wrote about on July 30, 2009 at a price of $47.95, as a chance to scoop-up shares, you made the correct move, as CNI has since accelerated to move above $64.

CNI remains one of the best-run railroads, bolstered by rigorous cost controls. Look for Canadian National's 2010 revenue to jump 18-25% and 5-8% in 2011, as both goods shipment and commodity transport recover; margins will likely increase this year, as well. Volumes also should rise at a double-digit rate in 2010.

Canada stocks and Canadian investments are coming into favor, as the specter of inflation rears its ugly head and the fate of the recovery is anything but certain. That's because Canada's financial system is stable, it is rich with natural resources, and it can keep plugging along even if consumers don't open up their wallets again anytime soon.That means Canadian stocks could be big in 2011.

The shares of Canadian National Railway (CNI), first discussed on July 30, 2009 at a price of $47.95, have pulled-back roughly in-sync with the Dow's recent retreat, but just look on that dip as an extended opportunity to scoop-up shares of a quality railroad. Here's why:

As noted earlier, look for the rails to play a pivotal role in both containerized and commodity transport, moving forward, with a cost advantage over trucking, particularly if oil's price remains elevated. And with oil trading in a $70-80 range, oil's price qualifies as elevated, no question.

Last chance to board the Canadian National Railway (CNI), which I first wrote about on July 30, 2009 at a price of $47.95.

As noted last year, the rails will play a pivotal role in both containerized and commodity transport, moving forward, with a cost advantage over trucking, particularly if oil prices remain elevated. And with oil trading at about $85 per barrel and trending toward $90, oil's price qualifies as elevated, no question.

"One of the first things I learned in this business was to keep an eye on the Dow Jones Transportation Index. Often referred to as the 'Canary in the Coalmine', it's one of the few worthwhile market indicators," suggests Tom Slee.

The contributing analyst with Internet Wealth Builder explains, "An upward movement in the Dow Industrials is only sustainable if confirmed by the Transports. As traders say, one 'makes', one 'takes'. Further, the Transports have led every major rally since 2004. So with our canary alive and well, I remain very encouraged."

The rails will play a pivotal role in both containerized and commodity transport, moving forward, with a cost advantage over trucking, particularly if oil prices remain elevated. But will oil prices moderate in 2010? As they say in The Bronx, N.Y. 'Good luck waiting for that one to happen!' And that's a big reason I'm reiterating my buy rating for Canadian National Railway (CNI), first recommended on July 30, 2009 at a price of $47.95.

CNI's long-term valuation story remains intact: look for 5-8% revenue growth in FY2010, as both goods shipment and commodity transport recover; margins will likely increase this year, as well.

It goes without saying that I favor the rails. And why not? The rails will play an important role in both containerized and commodity transport, moving forward, with a cost advantage over trucking, particularly if oil prices remain elevated.

Hence, I'm Reiterating my Buy rating for Canadian National Railway (NYSE: CNI), first recommended on July 30, 2009 at a price of $47.95.

Canadian National Railway's (NYSE: CNI) stock has already climbed a lot, but it's still a bargain. Here's why:

CNI is, arguably, one of the world's most efficient railroads: Demonstrated cost controls, plus repeated increases in efficiency offer a "track record" that's hard to beat. The First Call FY2009/FY2010 EPS estimates for CNI are $2.91 to $3.36.

Railroad giant Norfolk Southern Corporation (NYSE: NSC) was up 10% in just the last week, based in large measure on super 4Q and FY2007 earnings released a week ago, January 22. Fourth quarter operating revenue increased 6% to $2.5 billion, and net income increased 4% to $399 million. What makes these numbers even more impressive is that Norfolk Southern posted revenue increases at the same time it faced significantly higher fuel costs and a measurable reduction in shipments by volume. Coal shipments dropped 2% by volume, while general merchandise shipments dropped a hefty 10% by volume.

The story is the same for FY2007 results. Revenue increased while shipments by volume decreased. And the railroad still made money. The stock closed at $45.07 on January 21, but closed at $52.00 on January 28. Very nice capital appreciation for a week. The company increased its dividend payout by 12% to $0.29 per share, a 32% increase over the last year, and the 102nd consecutive quarter of dividend payout. Clearly, Norfolk Southern is a stock for the very long haul.