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Crude by Rail From W Canada Seen Tripling in Next Two Years
I'm not doubting that this is quite potentially true, but I think there's some degree of this priced in to some of these names. I've trimmed Gibson Energy (GBNXF.PK) and Canadian Pacific Railway (CP) in the last week, but will keep the remainder. Canadian National Rail (CNI) remains a top holding.
Thanks for the comment. Something to definitely think about - I've focused on the rails and, to some degree, courier services (Fedex/UPS), but I don't have as much interest in the airlines and trucking (JB Hunt, etc) and am mainly focused on rail West of the Mississippi. Still, if I want to commit new money to the sector the broad ETF is something I will consider.
Some railroads are still at least moderately reasonable, but - despite one of the best CEOs in rail - after a nearly 40 point run since mid-April, trimming CP seemed more than reasonable. I love the railroads and will keep the rest. I also like the rails with Mexico exposure (UNP/KSU.) There has been some discussion in the recent past about KSU being bought by CP, although who knows if that would happen or even be allowed to.
"CP has never shown any public interest in acquiring Kansas City Southern, but the case has been made before because of their complementary networks. A link-up would provide CP with a U.S. north-south line into Mexico with port access in Vancouver, Montreal, the Great Lakes and the Gulf of Mexico.
But Mr. Spracklin said it is only now that a link-up would make sense due to the relative share price performance of the railways after CP began a major restructuring at the hands of chief executive Hunter Harrison.
“With CP’s valuation at an all-time high, we believe this new-found currency has opened doors to acquisition opportunities that did not previously exist,” he said."
Comments
Regards,
Ted
http://www.ishares.com/us/products/239501/ishares-transportation-average-etf
Some railroads are still at least moderately reasonable, but - despite one of the best CEOs in rail - after a nearly 40 point run since mid-April, trimming CP seemed more than reasonable. I love the railroads and will keep the rest. I also like the rails with Mexico exposure (UNP/KSU.) There has been some discussion in the recent past about KSU being bought by CP, although who knows if that would happen or even be allowed to.
"CP has never shown any public interest in acquiring Kansas City Southern, but the case has been made before because of their complementary networks. A link-up would provide CP with a U.S. north-south line into Mexico with port access in Vancouver, Montreal, the Great Lakes and the Gulf of Mexico.
But Mr. Spracklin said it is only now that a link-up would make sense due to the relative share price performance of the railways after CP began a major restructuring at the hands of chief executive Hunter Harrison.
“With CP’s valuation at an all-time high, we believe this new-found currency has opened doors to acquisition opportunities that did not previously exist,” he said."
http://business.financialpost.com/2014/03/03/cp-rail-should-considering-kansas-city-southern-acquistion-analyst/
Edited to add: One of the Najarians on CNBC just on heavily promoting CP. Very good company but a little late at this point.