CP wanted to merge with CSX. But because the clearly superior management team is the CP group, the CSX gang knew they would soon after be shown the door. So they nipped it in the bud to preserve themselves. To the detriment of both shareholder groups....a railway with transcontinental reach has increased efficiency and business merits that are dogballs obvious.
But CSX shareholders come out the bigger losers. You remain investors in one of the worst-performing Class 1 railways, stuck in unenlightened strategies and ignorant of the rail revolution. You also have a senior management group that demonstrably puts its own egos and self-interest ahead of shareholders, at your immeasurable expense.
Enjoy the sandwiches at the AGM. They better be great.
Back in 2012, immediately following the proxy fight, clairvoyant equity analyst Walter Spracklin confidently predicted that CP might get to a 71% OR in 2015. If the restructuring plan played out well. Which they might not.
So we got that going for us! And Walter still has a job...so he must be pretty proud.
Wow. So simple. I completely forgot that.
Just one nit picky little question....
How do these two things...."happen"? Pricing above inflation and growing volume, I mean? Because the market doesn't simply roll over and accept the former like a bunch of rubes without being given a satisfactory rationale, and CSX management has a legacy of not being very good at delivering the latter.
Erratum: CSX intends to buy $2B of stock over the next TWO years, not one.
What an odd way to state that. I've never seen a 2-year buyback announcement.
A year at a time seems fine.
Addendum: Almost forgot...the stock should objectively be priced adequately BELOW fair value for a buyback to provide value to the company. I'll leave it with that.
CSX has an "intention" to buy back up to $2B in stock in 2015.
Between Jan 1, 2014 and March 16, 2015 (15 months), CP ACTUALLY bought back $2.59B in stock.
While it was still in the midst of a transformative operational overhaul.
While simultaneously reinvested heavily in its infrastructure.
While the economic conditions provided the strong earnings to support 'extra' capital investment.
CSX is doing this out of weakness, not strength. CSX needs to focus on improving its efficiency, not placating short-term investors at an uncertain time with either an unaffordable bribe OR an empty promise.
"Have you look at how the Buck is doing against other currencies? It is up 11%! CSX is down 8% YTD, we are still ahead! Guess who the putz is?"
Sounds like you just don't know whether you're sucking or blowing, Unca Larry.... on the upside, being that two-faced would make you a great politician.
So that.....ummmmm "optimistic"....EPS growth forecast for 2015? The one made when we were still sweating over that CP Defcon 2 alert? Yeeeaaaahhhh....not gonna happen. We can't do that. You know...weakened economy, blah blah blah
So here's a juicy dividend increase and a promise to buy back stock. That we can do (and you should appreciatively accept).
...Now, if we can just armwave our way through the AGM, and CP stays busy....
CSX is certainly in no better position today to be raising its dividend 13% than it was 2 qtrs. ago.
So what happened to change their attitude ? A takeover scare.
So now they're buying the goodwill of shareholders for an extra few cents dividend boost and the (potentially empty) intent of a big stock buyback.
Improving the railroad would be FAR tougher.
So...enjoy those extra pennies. They're costing you a fortune.
1) It's dogballs easy to "ignore" a poster.....figure it out. Einstein.
2) Feel free to post some insightful positive BS of your own. If you have none, as I am quite sure, go pound sand.
3) Per #1,....zap..
Moorman was too busy opining on the folly of rail mergers to do his actual job --- which was to try turning a third railroad into a second-rate one.
Ironic...he thought the biggest risk to his lucrative job was a takeover, when in fact it was the abject incompetence he displayed every day.
With NSX announcement after hours, CSX is now down over 12.5% for the year.
This environment is one where great management outshines the pretenders. So good luck with that.