The Successful Investor Hotline – Friday, June 8, 2012

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $73.54, Toronto symbol CP, has resumed normal operations now that Ottawa has ended an eight-day strike by its locomotive engineers, conductors and yard workers. The strike probably cut CP’s earnings per share by around $0.20 in the second quarter of 2012. The company earned $0.82 a share in the first quarter. At CP’s recent annual meeting, U.S.-based activist investment firm Pershing Square Capital Management, which owns 14.2% of the company, succeeded in replacing seven of CP’s 16 directors with its own nominees. This week, the new board appointed Pershing Square nominee Paul Haggis as CP’s new chairman. The board is now looking for a new chief executive officer. Pershing wants to install Hunter Harrison, the successful former CEO of CN Rail, as CP’s CEO. The board will probably make a decision in the next month or two. Whatever the outcome, CP will continue to focus on improving its efficiency with new trains and streamlined schedules. It should also benefit from…