past monday the cdn. federal elections was held
conservatives 124, liberals 103, bloc 51, ndp 29 independant 1.
the conservatives have a slim minority and will have to tread carefully. next election will be in two years roughly. most parties are broke and martin has left so the liberals have to pick a new leader.
wish harper the best, hope he goes through with increasing dividend tax credit, and will lower gst sales tax from 7-6. should also lower income taxes like the liberals were going to do...but maybe.
martin was probably the best finance minister the country ever had, had some failings as pm. hopefully harper keeps the balanced budget started under martin going.
here are some update of some stocks that I have mentioned since 1998/1999.
CNR (CNI) Cdn. National Railway
$103.25 cdn low $70.05
$89.25 US (CNI) low $56.23
reported good numbers, whats new. earnings increased 14% in Q4
Q4 earnings 430 million cdn. up from $376 million
1.56 share up from 1.29 share last year.
operating ratio improved to 61.8 (that is the lowest I believe)
revenue 1.89 cdn up 9%, costs increased climbed 3%, would have been flat but the cost of diesel fuel is the reason for increase.
diesel fuel prices are running higher than they expected and may increase costs further. that is one of the main and few negatives of cnr (cni).
they plan their 4th 2 - 1 stock split, have increase dividends 10X, annually (ten years) roughly 400% increase over that time.
CNR the 5th biggest in North America and biggest in Canada bought 3 small railways from Rail America that allow their network to get closer to the cdn. oil sands.
the small deal for $26 million plus they will spend 40 million on the tracks to run heavier freight in the future. a small deal that does nothing for earnings now, still may be a good investment in the future.
also came to a deal with cp in traffic around port of Vancouver.
trading near high valuation of PE 18.90
CP $54.70 cnd. low 40.40
CP $47.69US low $32.55
has announced 15% cuts to front office management, 400 jobs, and a change of operating the railway. hope to improve operating ratio which is above 70. lower the better.
both of these railways will benefit from a stong economy, they trade near their high end range.
CNR CNI used to trade 16-18PE when everyone loves the stock.
currently over 18PE, and have seen it trade 9-14PE when people no longer want to own a boring railway
CP is trading near its high end range 16.9. it is cheaper because not as well run as CNR, CNI
still they seem to be improving and more tied to the resources, which may be a plus.
note: own a small position in both (which it was much greater) and have many put options out on the two stocks.
agree to buy the stock at a certain price.
for CNR
$76, $80, $85 March. all look to expire
have recently sold
Sept $85, 90, 95.
CP $42cdn. various dates.
so hoping the stock stays above these levels and the options expire. also which bought some calls on these stocks...
short term may be fully priced. but like these stocks long term.
and on any market corrections always look to add to these postions, especially CNR, CNI.
Toronto (cdn. market is up over 5% in Jan.) so much for 2006 being a harder year to make gains, so far.....
thanks
selkirk
CNR said earnings should grow 10-15% in 2006.
conservatives 124, liberals 103, bloc 51, ndp 29 independant 1.
the conservatives have a slim minority and will have to tread carefully. next election will be in two years roughly. most parties are broke and martin has left so the liberals have to pick a new leader.
wish harper the best, hope he goes through with increasing dividend tax credit, and will lower gst sales tax from 7-6. should also lower income taxes like the liberals were going to do...but maybe.
martin was probably the best finance minister the country ever had, had some failings as pm. hopefully harper keeps the balanced budget started under martin going.
here are some update of some stocks that I have mentioned since 1998/1999.
CNR (CNI) Cdn. National Railway
$103.25 cdn low $70.05
$89.25 US (CNI) low $56.23
reported good numbers, whats new. earnings increased 14% in Q4
Q4 earnings 430 million cdn. up from $376 million
1.56 share up from 1.29 share last year.
operating ratio improved to 61.8 (that is the lowest I believe)
revenue 1.89 cdn up 9%, costs increased climbed 3%, would have been flat but the cost of diesel fuel is the reason for increase.
diesel fuel prices are running higher than they expected and may increase costs further. that is one of the main and few negatives of cnr (cni).
they plan their 4th 2 - 1 stock split, have increase dividends 10X, annually (ten years) roughly 400% increase over that time.
CNR the 5th biggest in North America and biggest in Canada bought 3 small railways from Rail America that allow their network to get closer to the cdn. oil sands.
the small deal for $26 million plus they will spend 40 million on the tracks to run heavier freight in the future. a small deal that does nothing for earnings now, still may be a good investment in the future.
also came to a deal with cp in traffic around port of Vancouver.
trading near high valuation of PE 18.90
CP $54.70 cnd. low 40.40
CP $47.69US low $32.55
has announced 15% cuts to front office management, 400 jobs, and a change of operating the railway. hope to improve operating ratio which is above 70. lower the better.
both of these railways will benefit from a stong economy, they trade near their high end range.
CNR CNI used to trade 16-18PE when everyone loves the stock.
currently over 18PE, and have seen it trade 9-14PE when people no longer want to own a boring railway
CP is trading near its high end range 16.9. it is cheaper because not as well run as CNR, CNI
still they seem to be improving and more tied to the resources, which may be a plus.
note: own a small position in both (which it was much greater) and have many put options out on the two stocks.
agree to buy the stock at a certain price.
for CNR
$76, $80, $85 March. all look to expire
have recently sold
Sept $85, 90, 95.
CP $42cdn. various dates.
so hoping the stock stays above these levels and the options expire. also which bought some calls on these stocks...
short term may be fully priced. but like these stocks long term.
and on any market corrections always look to add to these postions, especially CNR, CNI.
Toronto (cdn. market is up over 5% in Jan.) so much for 2006 being a harder year to make gains, so far.....
thanks
selkirk
CNR said earnings should grow 10-15% in 2006.
