Investment Q&A

Q: Given the fact that CNR has announced layoffs due to a slowing economy how do you this affecting the stock's performance over the next few years. Thank You.

Q: I think I need to increase my Industrial exposure by adding one more company. I have 4% in each of CAE, CNR, WSP. Perhaps one more at 2 or 3%. Any suggestions?

Q: Hi Guys

I came across this good review (printed below) of the book Railroader by Howard Green. The book outlines Hunter Harrison and what made him, and makes, an outstanding CEO. Wondering looking at current CDN companies which stand out as being lead by outstanding, visionary, numbers driven CEOs.

"Book - Railroader

Every so often there is a book that gets circulated around our office that sparks both conversation and action. Railroader, written by Howard Green, recently ignited this spark. You may recognize Howard Green as the founding anchor at Canada’s Business News Network (BNN). Green chronicles the life of Hunter Harrison, the brash railroad expert who grew up on a railway spending five decades in the industry and rose from a labourer to the CEO of multiple railroad companies. Canadians specifically might remember Harrison as he has his fingerprints all over historic Canadian institutions. He ran and turned around both Canadian National (CN) and Canadian Pacific (CP) (as well as Illinois Central and a brief tenure as CEO of CSX before his death in 2017). Howard does a great job providing in-depth and genuine insight into the life and, more crucially, the thought process behind Harrison’s decisions.

The book was engaging from our point of view because we have met with hundreds, if not thousands, of management teams and we’re always on the lookout for what Hunter Harrison embodied. How was Harrison able to rise from lowly labourer to successful CEO multiple times over? Harrison knew more about railroads than anyone else. He grew up on a railroad and did every job along the way. Harrison was described as having an “encyclopedic knowledge of the industry” and used it to transform the businesses he led. There are instances in the book that describe his ability to identify a problem just by the smell. In other words, he had an edge.

Harrison was also a “numbers guy.” He measured everything that could be measured. He was the first to implement computers in the day to day operation of a railroad and went on to pioneer Precision Scheduled Railroading, now an industry standard. When Harrison would look at the railroad’s daily printouts, the numbers would jump off the page and he could see what the issues were. As Green describes, “Soon he was scrutinizing the return on assets, capital spending, depreciation, cash flow and revenue. He also wanted all of the regions on the railroad to be cognizant of these numbers.” The combination of knowledge, measurement, and execution would show up in the railroad’s operating ratio, the industry standard in evaluating performance, which Harrison would improve far beyond what industry experts thought possible, at all of the railroads he led. He knew what trains were capable of when everyone
else couldn't even imagine their potential. The ability to transform a commodity business to a service-based business that customers are willing to pay a premium for is truly remarkable.

Stuart

Q: Just a short comment on the rails, having been employed at one for my career. These two companies may see volume drop off, but they also have the ability to reduce capex and headcount. In an environment of less traffic, their operating ratio gets easier to reduce. In my mind, very defensive stocks to hold

Q: Your thoughts on the quarterly results and views on the rail industry in the year ahead?

Q: HI 5i
In my grandchildren's RESP, I have about $1500 to invest, Currently have the above stocks at about equal weighting except for CNR at 26%, rest at approx. 15%. Would you recommend a couple of options for the next investment?
Regards
Kathy

Q: hello 5i:
the railroads are beginning to look a little more interesting to me. While I still think we need at least another 5% taken from the price to become very interested, I wish to know which you'd pick today, knowing you go back and forth on them (you last chose CN in mid-August), and WHY you'd choose the one you do.
thanks
Paul L

Q: My friend inherited a number of CN stocks. He does no trading and has only mutual funds. What are your suggestions for his selling of these stocks. This is a one time thing and any suggestions are much appreciated! thanks Gord

Q: Any reason for the big drop in CNR today? I've held this stock for many years and it has always been profitable to buy on the dips.

Q: Hello 5i,

I currently hold these stocks in an unregistered account. I have journaled over the five companies into a US account for the dividend. I would like to add possibly two more companies that pay their dividend in US funds. I have the rest of the balanced fund and some growth in my TFSA. Any suggestions to add here, and if it results in duplication, what would you remove from the list. I am well balanced and would likely have to sell at least one current stock and could just add the other if you can give me two. Was looking at Nutrien or AQN. Didn’t pull the trigger on AQN last year at 12.5.

Thanks for the assist.

Q: Hello:
I am looking for a conservative, growth orientated, low dividend payout company that will give me capital gains. Dividends are a low priority. Any thoughts on CNR, CP or ATD or other companies that would satisfy my objective. Thanks in advance.
Jerry

Q: Good morning gentlemen, your opinion on this two co. Which one would you buy today? Thanks Alnoor

Q: Would you consider this a good entry point into CNR?
Thank you,
Sharon

Q: It’s this a good entry price for these three?

Q: Just wondering if you see any sense in owning a full position on both CNR and CP. And if you have choose one, which one of these two would you choose?
Cheers,

Q: Hi, I currently have $11,500 to add to my TFSA with a long term horizon. I currently hold CNR (2.53%), NTR (2.88%), PLC (5.04%) PPL (2.98%), TD (4.21%), V (4.71), WCN (6.15%), XLV (3.31%) MAW 104 (25.11%). I am wondering if I should add to the current companies or might you have any other suggestions?

Q: I'm thinking about selling a position in EFN with a 5% weighting in a RESP with a 5 year time horizon and replacing it with either CNR, NTR or BIP.UN. Another newsletter is big on these 3 names for longer term holds. Thoughts?

Q: Hi, I need to increase my Industrial Sector a fair bit. I started with full positions in CNR, FTT and SIS. CNR has doubled but FTT and SIS are both down, SIS quite a bit.

I started with a half position in WSP and it's up a bit.

What would you do here to increase your Industrials

Thanks
Robert

Q: Good Morning Team
I have the above industrials trying to reduce the amount of my positions. Which of the above would you suggest I sell? Also need to increase allocation which would you suggest I add to? Thank you. Heather

Q: Could I have your views on CNR's latest quarter? Looks like a slight miss to me. Tnx