Will CP + NS Happen?

[jmarley76]

KCS isn't for Sale!!

I never said it was for sale, this is all speculation for the sake of speculating...  (which I think someone already said...)

I'm interested in seeing what you all find out... 

[Blazeman]

Meanwhile, Hunter running with efficiency

http://www.progressiverailroading.com/canadian_pacific/news/CPs-Q1-profit-soars-operating-ratio-drops-to-record-low--47980?

[Lenny53]

Meanwhile, Hunter running with efficiency

http://www.progressiverailroading.com/canadian_pacific/news/CPs-Q1-profit-soars-operating-ratio-drops-to-record-low--47980?

Wow, sub 60 operating ratio.  Wonder if the NS shareholders are taking notes?

[Ed Kapuscinski]

It's amazing what can be achieved when you slash and burn.

Well, in the short term.

[Lenny53]

It's amazing what can be achieved when you slash and burn.

Well, in the short term.

Sad but true, fiscal quarter to fiscal quarter is the way of Wall Street these days.

[eric220]

Wow, sub 60 operating ratio.  Wonder if the NS shareholders are taking notes?

Yes, we are.

[Ed Kapuscinski]

http://calgaryherald.com/business/local-business/cp-rail-job-losses-mount-up-to-1400-positions-could-be-gone-by-end-of-year

[C855B]

Not just CP, the contraction is industry-wide:

https://www.washingtonpost.com/business/norfolk-southern-idles-tennessee-rail-yard-and-cuts-135-jobs/2016/04/20/421e88ec-0736-11e6-bfed-ef65dff5970d_story.html

On a brighter note:

http://in.reuters.com/article/union-pacific-results-idINL2N17O0FV

UP stock is up 4% on this news.

[jmarley76]

Another take on the NS Article: http://wate.com/2016/04/20/norfolk-southern-reducing-operations-at-knoxville-rail-yard/

"The Knoxville terminal, known as John Sevier Yard, will still serve as a hub for through-train operations and provide safe, reliable service to local customers. They say local train traffic will have a minimal customer impact."

[Missaberoad]

Not just CP, the contraction is industry-wide:
https://www.washingtonpost.com/business/norfolk-southern-idles-tennessee-rail-yard-and-cuts-135-jobs/2016/04/20/421e88ec-0736-11e6-bfed-ef65dff5970d_story.html

CP is still an exception even with the current climate The company has been eliminating over 1000 jobs a year for the past few years. Mostly through attrition and fewer new hires. That being said CP had a very large workforce compared to average when Hunter took the helm, and alot of the Job eliminations were in management. I'll leave it to others to debate the pros and cons...

On a personal note fortunately I was able to get a Job with the company, but its been an interesting process of waiting and delays for things to fall into place. Still waiting at the moment but there seems to be rumblings for May.

[Lenny53]

Another take on the NS Article: http://wate.com/2016/04/20/norfolk-southern-reducing-operations-at-knoxville-rail-yard/

"The Knoxville terminal, known as John Sevier Yard, will still serve as a hub for through-train operations and provide safe, reliable service to local customers. They say local train traffic will have a minimal customer impact."

NS is talking about getting their operating ratio down to 65% by 2020.   Seems like a long time to get to an average mark amongst class 1s. 

[jmarley76]

NS is talking about getting their operating ratio down to 65% by 2020.   Seems like a long time to get to an average mark amongst class 1s. 

It seems as if they are almost stalling in hopes of improved economy... or just stalling... 

[Ed Kapuscinski]

NS is talking about getting their operating ratio down to 65% by 2020.   Seems like a long time to get to an average mark amongst class 1s. 

Because NS runs a railroad, not a financial vehicle. They invest in their infrastructure and equipment. That stuff costs money, which is something that short sighted investors don't get.

[C855B]

Yup. Repeating myself: CP is SP all over again. Stop investing spending money on the plant, layoff everybody not actually piloting a train, report fantastic quarterly profits... then watch your stock price sail skyward. Institutional investors frequently love this stuff because they don't look past much more than a couple of quarters. Besides, there's plenty of time to bail when failures from "deferred maintenance", etc., start to show up on the balance sheet.

[Lenny53]

Yup. Repeating myself: CP is SP all over again.

No, CP is CN all over again.