The Successful Investor Hotline – Friday, January 6, 2012

Article Excerpt

In next week’s Successful Investor Hotline, we’ll reveal our #1 stock pick for 2012. Don’t miss this unique opportunity to profit. CANADIAN PACIFIC RAILWAY LTD., $69.08, Toronto symbol CP, rose 4% this week on media reports that Pershing Square Capital Management, L.P. is pressuring the company to replace its current chief executive officer with Hunter Harrison, the retired CEO of rival Canadian National Railway Co. (Toronto symbol CNR). Pershing Square is an activist investment firm that is now CP’s largest shareholder. CP’s shares have gained 8.3% since October 28, 2011 when Pershing Square said that it had bought 12.2% of the company on. Pershing Square now owns 14.2% of CP. Mr. Harrison made CN more efficient, and Pershing Square feels he can do the same at CP. However, he does have non-compete agreements with CN that could stop him from joining CP. Regardless of whether Mr. Harrison joins CP, Pershing Square will keep pressuring the company to improve its efficiency. That adds to CP’s…