Canadian Pacific Railway Limited (USA)
A crown corporation reborn
Canadian National Railway (NYSE: CNI) has achieved rail-road prominence, some say dominance, in a fairly short period of time. In 1995, when CN was brought to market in one of Canada’s most successful initial public offerings (IPO), it was the poster-child for inefficiency.
Today, their story is much different. Over the past 17 years, CN has grown revenue at a compound annual growth rate of more »
Activist hedge fund manager Bill Ackman has received a lot of attention for his fund’s positions in J.C Penney (long) and Herbalife (short).
But on a relative basis, neither of those positions makes up a significant portion of Pershing Square’s capital. Ackman’s fund may own nearly one-fifth of J.C. Penney, but it’s less than 6% of Pershing’s portfolio. Likewise, the fund may have more »
George Soros, the man who famously broke the Bank of England on Black Wednesday, earning more than $1 billion in profit on the trade, has been rumored to have taken a large stake in Herbalife (NYSE: HLF). In my opinion, this is a move on Soros's behalf to try to ignite a short squeeze in Herbalife shares.
Short interest in Herbalife currently stands at more than 30 million shares more »
As a way to promote goods and services that is beneficial to society as a whole, governments often establish entities that have direct interaction with consumers. One of these such entities is the Crown Corporation, which is officially owned by the Canadian government but enjoys a greater latitude in making its own decisions than a governmental department. In this article, we will take a look at two former Canadian Crown more »
Railroads are often seen as a bellwether for the broader economy because of the amount of retail and manufactured goods they transport across the nation. Norfolk Southern (NYSE: NSC) is one of the most well known railroads in the United States, operating approximately 20,000 route miles in 22 states.
The railroad industry counts Warren Buffett, one of the world’s most famous investors of all time, as a fan more »
The tragic train derailment at Lac-Mégantic, Quebec has put the spotlight on the crude by rail boom. But you might not know what's going on. Here're six charts that quickly summarize the important trend surrounding this disaster.
The rise of the oil sands
The crude by rail boom had its start in the Alberta oil sands and the North Dakota Bakken where new technologies like in-situ and fracking more »
Railroads are an industry looked favorably upon by many investors, including Warren Buffett. He’s perhaps the most famous investor in the world, and he acted on his fondness for railroads by purchasing Burlington Northern Santa Fe, in a $34 billion deal in 2009.
There’s good reason to love railroads. They’re seen as major economic bellwethers for the variety of industrial goods they transport. In essence, as the more »
In the past twelve months, Kansas City Southern (NYSE: KSU) has experienced significant gains on the market, heading from around $70 per share to $112.60 per share at the time of writing. At the end of 2013, Barron’s featured the company, thinking that Kansas City could increase by around 20% in the next twelve months. So is Kansas City cheap or expensive at its current price? Should investors more »
All Aboard the Oil Train: Which Company is Best Positioned to Capitalize on Surging U.S. Oil Production?
Oil production in the United States has moved sharply higher in recent years due to high crude oil prices and technological advances in the extraction of petroleum. Much of this new capacity resides in states such as: North Dakota, Montana, Pennsylvania and Ohio; requiring land transportation to deliver the crude oil to refining facilities located elsewhere. While pipelines are one method to transport oil, another method is rail with the more »
The United States is pumping out more crude oil than the country’s pipelines can carry. The risk associated with oil drilling in the United States has disappeared, as a result of innovative technologies such as hydraulic fracking. The days of U.S. oil companies scouring the world for pools of reachable crude oil are over. Equipped with technologies such as fracking, the US oil industry has flourished and volumes more »
Pershing Square Capital invests in mid-cap and large-cap stocks of businesses with little financial leverage. The firm also invests in low-volatility stocks. This investment style provides larger margin of safety, which is generally preferred by value investors. In this article, I am analyzing its top-three holdings as per the last 13F filed by the fund. Overall, these three companies constitute 67% of Pershing Square Capital's portfolio.
Percentage Holding more »
One of the "hedgies" we track at Insider Monkey is Pershing Square managed by Bill Ackman, and it has recently filed its 13F form with the SEC. Disclosing its first- quarter stock positions, Ackman has made a ton of noteworthy moves, but we’ll keep it to his top five. Most readers probably know this money manager from the Herbalife saga, but there’s more to him than that. Let more »
As natural gas continues to replace coal, many North American railroads have begun struggling to retain their growth momentum. Even the upcoming coal gasification plants in the continent won’t be operational until 2018, which suggests that the domestic coal demand could continue to decline. However, intermodal transportation is picking up rapidly, and North American railroads with mature intermodal routes are coming out unscathed.
In the race to move Canadian crude, pipelines are losing.
Pipelines, built by companies such as TransCanada (NYSE: TRP) and Enbridge, once carried nearly all of the crude oil shipped through the country. This year, however, nearly 10% of Canadian crude oil production will flow, not through buried pipes, but trains.
But which one will win out? Let's investigate.
Rail has quietly become a popular mode of more »
"Hey! Hey! Ho! Ho! The Keystone pipeline got's to go!"
That was a protest chant from a march outside Washington D.C. where environmentalists called on President Obama to reject TransCanada's (NYSE: TRP) Keystone XL pipeline earlier this year.
While North America is in the midst of an energy boom, politics is preventing the construction of desperately needed pipelines to move crude from well head to market.
And more »
As the North American economy recovers, the rail sector has been one of the biggest beneficiaries. The demand for goods to be transported safely and efficiently by the railroads is still unsurpassed. As North America has undergone an energy renaissance, rail remains the fastest and easiest way to move crude oil. As the economies of Canada and the United States continue to recover, look for the rail stocks to continue more »
American transportation companies are showing strong signs of life. From the chart below, note how well Dow Transports performed in the last 12 years relative to the S&P 500.
One reason the Dow Jones Transportation Average has done so well is because of railroad companies. Of the six industries represented in the average, the rail industry performed best.
With the economy coming back on track, I believe that the more »
Four North American railroads are seeing explosive growth in shipment of crude due to a lack of pipeline capacity in the United States and Canada. But only one railroad, Canadian National Railway (NYSE: CNI), owns a rail to the massive Athabasca Oil Sands in Alberta, the largest known reservoir of crude bitumen in the world.
In 2007, CN acquired 201 miles of track from the Athabasca Northern Railway for $25 more »
Billionaire Bill Ackman and Pershing Square Capital's latest filing with the SEC shows that he has kept his top five steady and is continuing his major activist campaigns. This is no surprise, as Ackman is a long-term value investor, particularly successful at special situations. Outlined below are Ackman's top five, so let's check them out (check out Pershing's latest picks).Pershing's top stock remains Canadian more »
Increasing concern over global warming has spurred a new style of environmentally responsible investing.The Green Century mutual fund family is a leader in the space, so I took a look at the company's highly rated Balanced Fund for some stock ideas. I discovered that sometimes, "green" isn't found in obvious places.
Investing in Green
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