Short strike looms for CN

Article Excerpt

CANADIAN NATIONAL RAILWAY CO. $162 is a buy. The company (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 664.0 million; Market cap: $107.6 billion; Price-to-sales ratio: 6.1; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.cn.ca) operates Canada’s largest railway. Its 30,255-kilometre network stretches across the country, and passes through the U.S. Midwest to the Gulf of Mexico. The federal government recently blocked a strike by the union representing CN’s conductors, locomotive engineers and yard workers by asking the Canadian Industrial Relations Board to review the situation. However, the union is now poised to strike in July. A long disruption seems unlikely, as it would significantly impact the shipment of grains during the busy summer season. Farmers could also face shortages of key supplies like propane. These factors would likely prompt Ottawa to impose a settlement. CN Rail is a buy. buy. …