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Canadian National Railway knows efficiency matters

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.

Continue reading Canadian National Railway knows efficiency matters

Canadian National Railway: Still a bargain

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.

Continue reading Canadian National Railway: Still a bargain

A tale of two railroads (NSC) (CNI)

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.

Continue reading A tale of two railroads (NSC) (CNI)

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Last updated: November 14, 2009: 04:34 PM

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