Investment Q&A

Q: Recently it was recommended to me to sell KSU and buy FDX. What do you think?

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: In view of what is transpiring between CNR and CP and the Kansas Railway is this stock still a Buy, hold or sell.
Thanks for your advice

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: With CP stepping out of the way and opportunity for synergies and growth shouldn't this news provide a tail wind for CNR stock price? CNR continues to fall on the news.

Q: I own CP, but given CP's Competing Bid TODAY for KSU......should I also BUY CN (down 8%) or sell CP and buy KSU?
Thanks!

Q: So what do you think about the CNR's outbidding of CP for KSU?

Q: There are times when I wonder about continuous disclosure rules and adherence to them. At the open on Friday, CP traded down sharply on much higher than average volumes. Over the weekend a major announcement. KSU did not trade up much on price during Friday but experienced higher than average trading volumes. Should a retail investor care or is their an issue here? Do the regulators watch this type of activity surrounding a major announcement?

Q: Over the last 20 years CNR and KSU have been outstanding performers. CNR up about 2000% and KSU up 7500%!! Both have been better than Birkshire Hathaway. Which would pick for a long hold? Have the metrics of these RRs changed? In particular, does KSU still have the advantage that propelled it 20 years ago? It has lagged of late.

Q: Hello Peter & 5i team, what does an investor do with a situation like KSU, where there may be a material change? Along with CNR, I wanted a US rail name. Despite the highest multiple in rails at the time, I was persuaded by growth potential from the US crop turn around, a comparatively fairly small coal exposure at 10% of volume coupled with a small but growing crude shipment opportunity, the Mexico advantage to come from 4 auto plants coming on stream and the KSU pipeline from Mexico into the US. I had been doing very well, but the stock is now down 27% from November highs. KSU missed earnings (but still grew earnings by 15%)last report due to a coal customer switching to natural gas (turns out coal customers are fewer but larger), warned the Mexico auto business would take longer to fruition, but reiterated the railway as a growth company. But then Mexico breaches its duopoly multi year remaining rail agreement by proposing to open up to competition, subject only to Mexico senate endorsement (which may or may not happen). Turns out rail network is government owned and not the competitive moat we are looking for. Do you sell and move on at a loss or wait for this to play out? I have a 6.5% US weighting; 2.5% weighting combined portfolio. Thank you for your consideration. Keith