Has anyone else been looking at CNI during this dip?  Seems like a
well-run business, perhaps similar profile to WAB.  PE 15.5, TTM
EPS growth 27%, Q1 EPS growth 30%.  The price seems to be depressed
due to reduced oil transport shipments, and bad press from oil train
wrecks.  But oil is only 22% of the freight that they carry, and
growth was good against most other segments last quarter.

Revenues (millions of dollars)	2015 Q1	%tot	2014 Q1	%tot
Petroleum and chemicals	        643	22%	568	22%
Metals and minerals	        377	13%	308	12%
Forest products	                418	14%	339	13%
Coal	                        159	5%	182	7%
Grain and fertilizers	        535	18%	431	17%
Intermodal	                689	23%	621	24%
Automotive	                159	5%	129	5%
total	                        2980	100%	2578	100%

Seems like cheap oil, while hurting the oil transport segment, would also increase profitability.

They also pay a 1.6% dividend. I'm thinking longer term with this one maybe.  All feedback welcome.

I've added to a small position and may add more.

Railroads seem to be in favor since Berkshire made their big purchase last year. Philosophy is that as the economy rebounds, folks will need more stuff, and railroads will transport it.

The railroad industry, in general, needs a lot of infrastructure improvement, technology upgrades, etc. so you should expect some cap ex hits but it will vary.

If you like Bill Gates and want to invest like him, he is CNI’s largest shareholder. As we know, both Gates and Buffet have very, very long holding positions.

You might find this article a nice, quick read as well.…


I do not have any position


I have held CNI for many years, it has been an excellent investment.

All of the railroads have declined of late. The US companies have significant exposure to coal and oil shipments have declined as the price of oil has dropped. CNI has far less exposure to coal. Lumber, grain and fertilizer are more important for them. I have added a bit of late with the price decline. I would add more around 55 if it gets there.

See my comments on the Value Hounds board and some more discussion.