Investment Q&A

Q: I am looking at sector diversification and was considering CN or CP with a starting position. Do you favour either one of these entities for longterm growth (10 year)?

Q: While I am 'stocked up' in my industrial sector (TFII, WSP, CN, EIF, ATA, J, TT), I have read that with the CP/KCS merger/buyout and the agreement's dilution of CP shares, the next few days might be a significant opportunity to pickup CP shares. If the share price does drop, would you be a purchaser?

Many thanks for this excellent service.

Q: Which would be the best investment today for a long term buy and hold? Please rank. Thank-you.

Q: Hi - wondering your thoughts on the railways for potential lost business due to the BC flooding? Do you think they will have to ratchet down earnings for the qtr and if so, has it been "priced in"?

Q: What would be a good replacement for CP as a long-term stock holding?

Q: Now that things have become a little clearer, which of the two, CP vs CNR, would you prefer and why?

As always, thanks for your great service!

Q: Hi Folks,
I hold CNR in my TFSA with a nice gain - with todays news would you sell CNR to buy CP OR would you hold both. Appreciate your opinion.
Thanks

Q: 5i,
Now that the CP takeover of Kansas is approved, would favour CP over CNR?

Q: What stocks in Canada do you believe will do well with the passing of the Infrastructure Bill and Reconciliation Bill in the USA? Please list in order of preference. Thanks.

Q: CN took a bath today, and it looks like CP may get Kansas City after all.
I have no rail stocks; would you pick one today? Would you prefer the "winner" of Kansas City Southern?
John

Q: What are your thoughts on CP today after the STB block of the CN / KSU deal?
Do you see a buying opportunity?

Q: Good afternoon. I hold 2 companies from each major sector of the economy. In the Industrial sector I own shares in CNR and CP.

I am considering selling CP and replacing it with TFII for diversification purposes.

Although the capital gains hit would be large as I have held CP for over a decade would you consider this to be a wise move or a foolish one?

Many thanks in advance.

John

Q: Recently, CP Rail went down by about 5%. This seems to have been related to a Biden administration announcement about regulating prices and profits for the rail (and for shipping). The only other rail I see the share price for is CN; CN seems to have been hit less severely by the announcement and seems to have recovered a bit better. Can you identify any reason(s) why CP was a bit more badly off? And how does CP compare to other US rails in this recent event. On a completely unrelated issue, BC (and other places of course) has experienced another season of terrible forest fires, Sparks from railroads are mentioned as a possible cause of these fires, and there have been some Orders made for the rail companies to take steps to mitigate the hazard. Are the fires a risk to CP, either for potential liability for causing the fires, or for extra operating costs with lower profitability? Thank you for your excellent service.

Q: Hi 5i, What is the break fee, if CN gets the STB approvals? I see CP as being in a "No Lose situation, If they don't get KCS on refusal by STB they walk away with the break fee. Also If CN gets these assets it opens the door for a large US railroad to attack like a pack of hungry wolves to take over CPR. The politicians might have their heads explode if that happens. Does the Canadian government cabinet have to approve either of these deals?

Q: What is your gut feel that will happen if cn wins the takeover and cp is left at the alter
Disappointment and stock takes a hit
Happiness, no in debt and share count and stock goes up

Q: I'm well represented with banks, tech, and energy. Other than TFII, I own no industry. I want to own 3 of either WS, GDI, TIH, MG, CAR, or CP for the long term, looking for some growth, some dividends and not too much volatility. Which 3 do you suggest and why?

Q: Currently own CNR and am concerned about the KCS merger. Do you think the share price can recover IF the merger is approved? What if its not approved? Some major share holders think that CNR is taking a large risk and are over-paying/ My understanding is this decision could take up to a year to be decided. Would you SELL CNR and move to CP while this sorts out (no impact tax wise) or continue to HOLD until things get a little clearer to shareholders.
Thanks for your thoughts

Q: What Canadian stocks would you recommend for exposure to transportation?

Q: You recently commented that at this point you like TFII better than CNR and CPR. Could you elaborate and would you consider TFII a good choice for growth if we have inflationary pressures.
Thanks!

Q: Forgetting about the KSU acquisition, which would you prefer today. A 5-year chart shows that in 2016 CP was trading at about $26 CAD and CNR @ $80 CAD. CNR's Dividend is a full 1% higher.
Thanks as always!