A follow-up......No one would ever go to this movie. It's too unbelievable:
Jan 30/15: "Canadian Pacific Railway Ltd. is appalled that a government-funded group such as the Ag Transport Coalition can claim it is trying to enhance "the competitiveness of the agricultural supply chain," but not involve transportation partners in the discussion. The Ag Transport Coalition is a group of agricultural associations funded in part by Growing Forward 2, a five-year $3-billion investment program paid for by Canadian taxpayers and overseen by the Minister of Agriculture, Gerry Ritz...."
Anyone needing any more evidence that hte Canuckleheads are outright hostile towards rail, while being in the back pocket of all the other, unionized voting blocks involved in the supply chain charade called "Canada", need look no further. A clubby little bitchfest, paid for by oblivious taxpayers, where all the nonperformers get together in a room and complain about the "mean old railways" to the agenda-soaked boob from Ottawa.
This Ritz guy is a pathetic joker, this government is nothing but crass political panderers, and that country will slide back into the economic cess pool its become quite comfortable being. Well done, gangsters.
So....NSC has rewarded shareholders more than either CN or CP.
Good luck getting that GED...it will be tough.
A decent, hard-working, blue-collar town, down on its economic luck ever since the tobacco industry started dying. So they very gladly take any and all employers who are willing to move to town...including Herbalife. Sad.
I'd say there are basically two types of people here. There's train fans, who have and will own this stock forever, no matter what. And there's people who, after noticing how well the top rail stocks were doing, jumped onto CSX and NSC because they thought it inevitable that these stocks would surely play "catch up" with their peers, and therefore outperform.
Well, the first group is what it is. To the second group, I say this: Much of the gain in CSX and NSC came from the self-fulfilling act of people like you buying it. Those companies' operational performance has not improved much at all.
And now, the "fantasy days" of instant rail traffic growth may very well be over. Railways may actually have to go out and win it instead, And that means offering value for the dollar. Excellent service at competitive prices. This is not what CSX and NSC are prepared for.
You know who always survives tough times? The low cost producer. Econ 101.
We may finally be entering an era in freight rail when the real benefits of firm cost control actually become apparent.
So don't make the presumption that things will just remain the way they've been for the 2 or 3 years you've been paid any attention to rail. The tide could now be falling, and those who've been swimming naked should be real nervous.
BTW, if you're going to beatify someone for sitting in the CEO's chair while the tide floated the ship higher, you might as well get his name right.....especially since, per your anecdote, he could have become a family relative.
So....'stocks that went up will keep going up'. Gotcha, Mr. Buffett.
So why don't they just say that in the Barrons article? Instead of all that BS about toy trains and family pets?
Couple of things:
Pretty arrogant for a guy who isn't even competent at the job.,,but that is the exact kind of ladder-climbing, political putz that usually gets them.
Was Becky hot?
I find your recent PR tour on the "evils" of rail mergers rather interesting.
Given that you are the CEO of one of the two most inefficient Class 1's in the industry, with an OR that is a full 10 percentage points worse than the leaders, it seems nothing short of self-serving that you would be out trying to protect and preserve your own job rather than work on fixing your company's problems. But of course, campaigns of fear are always SO much easier than all that "heavy lifting", right?
And like all complicated problems, a more standard approach by the typically inept CEO is to throw more money at it. Shareholder money. Hence your recent decision to add more employees and buy more locomotives. Of course, that's precisely the opposite approach of Hunter Harrison at CP, who has been REDUCING assets, requiring faster asset turns, which creates new capacity, and has lowered CPs OR. By 24 points. In 2 years.
That took long hours and effort. And true railroad operations insight. And leadership. And respect for the expectations of shareholders.
So you just keep up that 'fear of God' anti-merger campaign. That's your best shot at keeping your comfortable office, it's what your best at, and what you're paid the big bucks to do.
Cleghorn & Green. OR in low 80's. The industry on the upswing, CP stagnant. Good enough.
Enter Ackman & Harrison. A new plan....well really, just a plan. Big promises.
"Can't be done. Ever. CP could never be as efficient as CN...too many 'structural differences'....inherently different businesses, due to grade through Rockies, lack of longer sidings."
CNR Q4/14: OR 60.7%....a new company Q4 record.
CP Q4/14 OR 59.8%......24 percentage point improvement. In 10 quarters. 2 years ahead of "impossible plan".
Anyone who believes that the concept of paying shareholders amounts to "peeing away money", or that it is "for nothing", deserves to have all of their own money confiscated from them. They deserve none.