Ackman/canadian pacific

[cottonpicken]

Out of his qe3 letter.



Canadian Pacific (CP)
Third Quarter Share Price Performance: 20.42% [CAD] Canadian
Pacific’s
transformation has been nothing short of remarkable. Recent results confirm the strength of
CP’s
turnaround. Despite lingering industry-wide congestion challenges, CP reported third quarter earnings per share of $2.31 which was 26% above prior year levels. On the strength of these results and the
company’s
outlook for the fourth quarter, CP maintained its full-year guidance, which calls for 6% to 7% revenue growth, a 35% or higher operating margin, and 30% or greater EPS growth. This guidance indicates that the company is on track to reach its original four-year margin target in just two years, given the rapid pace of the operational transformation. CP held an analyst day in early October to outline its revised multi-year plan. The
company’s
new four-year targets call for $10 billion of revenue by 2018, representing a 10.5% compound annual growth rate. According to CP, this impressive revenue growth is driven by the company
’s
vastly improved operations, which are enhancing CP's service and reliability to customers, and allow it to compete profitably for business it could not previously serve with its historically bloated cost structure.

We estimate that
CP’s
announced revenue and margin goals equate to $20 per share in earnings in 2018 including the impact of projected share repurchases, which is 138% above 2014
analysts’
consensus estimates of $8.41 per share. At the inception of our investment in 2011, CP earned $3.15 per share. The achievement of $20 per share in earnings would represent more than a six-fold increase in the earnings power of the business following the proxy contest and Hunter
Harrison’s
appointment as CEO


-dont shoot the messenger,lol.

[hobbyfrmr]

That's exactly what the shareholders want to hear.

[tweety]

Well a corp is about making money for its shareholders. Farmers grain problems are irrelevant.

Farmers sure have a hard time understanding that.

[Hopperbin]

How to turn these profits into more capacity?

[tweety]

Capacity is not their concern, only yours.

[Hopperbin]

Yes and no.

[bucket]

If you limit capacity you limit your revenue. Shareholders might start to question the current strategy.

[Hopperbin]

Public opinion may be another way. Many farmers incuding me claiming billions in damages may get some ass hole lawyer involded. There is a reason they spend 50 million in lawyer fees. Take the ****ers to small claims cause that is where we are at.

[Hopperbin]

Are the twits on twitter? Remember a while back cn was, farmers got on involved. So what ever happenned the outcome if one? I avoid that place.

[MBgrower]

Why would CP add capacity with these numbers. Adding capacity increases their costs and negates net revenue. Their profitability comes at a loss to the economy at large.

[Rareearth]

MB...EXACTLY

Expect more of the same ...for as long as the RR can maintain.

For all the Gov't haters this should be where Gov't steps in.
- national financial security
- govt responsibility is for infrastructure, if RR can't do it then...

[Rareearth]

The problem is those profits the shareholders are enjoying = nothing compared to the billions it has cost Western Canada

[tweety]

Maybe the govt should limit how much grain you can produce.

[Rareearth]

The go t is in full control. Taxation, limiting the profitability.

The way the financial security is through the trade balance. Has nothing from Cotton sunk in?

[farmaholic]

Where's hopalong?

Nationalizing it would turn it into a bloated bureaucracy that would likely never be profitable. But to leave it the way it is and have it nearly crippling sectors of the Western Canadian economy isnt right either. Regulate the bastards if they don't want to play fair, by the looks of their "achievements" they hardly need to increase rates, unless all tbe gains came from only cutting
expenses (ya, right).

How about re-investing some of that money in increased capacity or some maintenance (like trimming the forest{on the prairies, lol} along some of their right of way, so traffic can see them coming
around blind corners.

Can you imagine the power you would have if it was
just you and a couple of other guys farming all of Western Canada? Don't forget to lift your boot off the throat of your customers and suppliers when they start gasping and turning purple, you might need them to stay in business---for your sake.