Best grain hedge... short CP Rail stocks!

[TOM4CWB]

Who is about to get hammered on all sides in the upcoming CDN federal election promises massive changes to RR service requirements!. Recession looming CDN$ crashing.. what better short position could a farmer put on?

[TOM4CWB]

Is CP actually a well run 'CDN' company?
Well... no would be the likely answer... as the Board of Directors went through the June 30 month end... losing status as Canadian... because CP Rail had too many US Directors???

"Controversy over resignation of another director earlier this month prompted the departures.

Moments earlier, Creel explained the surprising absence of talismanic CEO Hunter Harrison from the call to discuss second-quarter results as the 71-year-old architect of the remarkable turnaround at the Calgary-based railway recuperated from surgery on his legs and a mild case of pneumonia.

“It’s business as usual at CP,” Creel assured investors and analysts.

The succinct explanation didn’t resonate with the markets. Despite CP’s record $390-million profit in the second quarter, the blue chip stock lost more than five per cent of its market value Tuesday. It was neither business-as-usual nor the last word.

The railway hastily issued another news release “in response to questions from investors and to address inaccurate speculation” to clarify the status of the leadership of the $32-billion market-cap company, and Harrison defied doctors’ orders to rest.

In an interview with the Wall Street Journal, Harrison said: “I really didn’t have any idea my not being on the call because of illness was going to cause the issues it did … I thought it was going to be kind of a non-event.”

The U.S.-based Institute of Crisis Management defines a crisis as “any problem or disruption that triggers negative stakeholder reaction that could impact the organization’s financial strength and ability to do what it does.”

Even for top organizations, the potential for unexpected reputation damage is ever-present.

Harrison told the newspaper he expects to return to work in three or four weeks and will retire when his contract expires in 2017. As the news disseminated, the stock recovered above $200 a share. It’s still a stark reminder of the cost of losing control of your message — and the effort it takes to get it back."

One has to question whether CP's Board of Directors and management are revealing all the storms they are about to enter!!!

http://calgaryherald.com/business/energy/ewart-cp-rail-communications

CNCP... thankyou for Likely being the meanest ornery corporations in Canada.

The Tom Jackson award for worst managed brands in business!!!

[Oliver88]

Slightly related to CP, but I saw a financial advisor on BNN last week telling the guests that from a "seasonality" point of view the end of October is the best time of year to purchase CN shares.


This would be according to the average year....although maybe 2015 is different with an election not to mention the looming issues with CPR.

[Hopalong]

With just about everyone complaining about CP efforts a year ago to maximumize profits at expense of longer term investment, thought about shorting stock.
Give credit to CP for allowing for less grain this year and success of farmers in lobbying for retention of revenue cap which will be more profitable for railway without surplus capacity.