The Successful Investor Hotline – Friday, April 13, 2012

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $75.67, Toronto symbol CP, is starting to benefit from its recent efficiency improvements. As well, more of its trains are running on time, thanks to the warmer-than-usual winter. In the three months ended March 31, 2012, CP’s average train speed rose 27% from a year earlier. It also had 28% more railcars in service, and terminal dwell (the time to load and unload railcars) fell 27%. As a result, CP now believes that it earned $0.80 to $0.83 a share in the quarter. That’s a lot better than the consensus estimate of $0.65 a share. U.S.-based activist investment firm Pershing Square Capital Management, which owns 14.2% of the company, still aims to replace seven of CP’s 15 directors with its own nominees. That would let it install Hunter Harrison, the successful former CEO of Canadian National Railway Co. (Toronto symbol CNR) as CP’s chief executive officer. CP will hold its annual shareholder meeting on May 17, 2012. No matter what…