would just like to update two railway stocks that I have talked about before; CNR/CNI Cdn. National Railway, and Canadian Pacific both trade in TSX and NYSE.
Cdn. National Railway CNR $77.52cdn. CNI $63.71 US
earnings for 3 months ending June 30 from the previous year
$416 million $1.47 a share 05
$326 million $1.13 a share 04
earnings growth is likely to grow 20-25% compared to previous guidance of 10-15%
operating ratio (the lower the better) fell from 65.5 to 61.2%
operating ratio = operating expenses/operating revenue
Revenue for the quarter increased 10% to 1.8 billion.
it was a great quarter and as usual CNR/CNI beat the streets estimates.
the company also plans to buy back 6% of the outstanding shares.
one negative was that fuel increased by 40% year over year, however these costs were passed on to customers through fuel surcharges.
also CNR/CNI next last two acquisitions added .35 to earnings (Great Lakes, BC) and will add .40 next year.
this is a great company and probably the best railway in North America.
I own a position and have written puts on the stock.
a mistake is that I traded around the position, wish I just kept the stock since it has outperformed the overalll market.
CNR/CNI should earn 2005 $5cdn. and 2006 $5.50cdn.
CNR $77.52cdn.
a good stock was looking to buy some as the company faced strike votes but are now resolved.
If the stock trades down 5% I will add to my position. until then will sell a few more puts on the stock and hold my current positon.
thanks
selkirk
Cdn. National Railway CNR $77.52cdn. CNI $63.71 US
earnings for 3 months ending June 30 from the previous year
$416 million $1.47 a share 05
$326 million $1.13 a share 04
earnings growth is likely to grow 20-25% compared to previous guidance of 10-15%
operating ratio (the lower the better) fell from 65.5 to 61.2%
operating ratio = operating expenses/operating revenue
Revenue for the quarter increased 10% to 1.8 billion.
it was a great quarter and as usual CNR/CNI beat the streets estimates.
the company also plans to buy back 6% of the outstanding shares.
one negative was that fuel increased by 40% year over year, however these costs were passed on to customers through fuel surcharges.
also CNR/CNI next last two acquisitions added .35 to earnings (Great Lakes, BC) and will add .40 next year.
this is a great company and probably the best railway in North America.
I own a position and have written puts on the stock.
a mistake is that I traded around the position, wish I just kept the stock since it has outperformed the overalll market.
CNR/CNI should earn 2005 $5cdn. and 2006 $5.50cdn.
CNR $77.52cdn.
a good stock was looking to buy some as the company faced strike votes but are now resolved.
If the stock trades down 5% I will add to my position. until then will sell a few more puts on the stock and hold my current positon.
thanks
selkirk
