The Successful Investor Hotline – Friday, July 20, 2012

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $75.49, Toronto symbol CP, has formed a partnership with Smart Sand Inc., a private company that sells sand to oil and gas producers. These clients pump this sand, along with water and other chemicals, into shale rock formations. This fractures the rock and releases the oil and gas. Under the deal, CP and Smart Sand will build a new facility in North Dakota that will load the sand onto CP’s trains. From there, CP will deliver the sand to Smart Sand’s customers in the Williston Basin, which covers parts of North and South Dakota, Montana and Saskatchewan. CP did not say how much this new facility would cost, but it should begin operating in early 2013. This deal is in addition to a recent contract to haul sand for U.S. Silica Holdings Inc. (New York symbol SLCA). Together, these two agreements will help CP profit from rising shale oil production in the U.S. CP Rail is our #1 buy for…