ne could even argue that this is precisey the time to ramp caex up ....while labor is readily availble and costs are really low.
But this management team is being VERY cautious......and that speaks volumes about how dicey it is right now.
They might end up paying for it by being slow to ramp back up, but that sin is forgivable. Killing the patient isn't.
This is not good news. Cutting capex for a second time, while increasing dividends and buybacks is hardly a:'green light' for this stock. Yes, it's nice that management isn't brain dead or corrupt or indifferent to shareholders...so that put them in the 99th percentile in Canada. If you're going to own any oil stock, this one is as solid as it gets.
But the energy space really suffers from a total lack of visibility. And part of the market is so stupid they think that the return to $100 is simply a when, not if. It only took 5 years to completely erase the entire database of oil price.
Enjoy the dividend, but you'd best treat it like you would rations in a lifeboat right now.
If you didn't buy CN Rail in the late '90s, you actually missed freight rail's "next phase of the industrial revolution".
The other players are now simply trying to figure it out and copy it. Some more aggressively and successfully than others.
CSX management are much better at saying the right-but-meaningless things. They know who they are, what they can do, and what they want. And this is it.
Share buybacks do not benefit any one shareholder over any other...that is pure, illogical BS.
In and of itself, unearned options or "free shares" is wrong and amounts to embezzlement ...and that is for shareholders to act on. The more apathetic the shareholders, the worse it is.
The only potential value of stock splits is as a signal...potentially. The company is not worth more than it was, no matter what Mr. Market "thinks" (ugh).
Investing more in infrastructure must never be done as a bind, virtuous good idea. The incremental return on incremental investment must be more than the cost of capital, and superior to all other competing options.
But don't fret...some of the rail industry's management teams don't seem to know or care about much of any of that either.
1) CP's current taxation rate is not 20%. It is 27.5%. The Company confirmed that figure in its latest guidance.
2) CP has never issued a 10-Q.
3) CP is not a U.S. Registered company. It has always been, and remains, a Canadian registered company.
4) As of Jan.1, 2016, it will become a U.S. Issuer for reporting purposes. It will still not be a U.S. registered company.