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Tuesday, September 18, 2012

My next investment: Canadian National Railway Company (CNR)

Its heavily raining in Montreal and I am stuck inside, waiting for the rain to stop.

I just watched Derek Foster presentation giving in Regina and I find it very great. Derek Foster is a very great talker and he must have been a very good teacher. His presentation give a good overview of his work. He actually talked about a few stocks, but nothing new. I have someone who comment saying that he didn't talk much about stocks and actual investment. He did mention a few ones. It was a quick presentation of about 30 minutes or so. Very nice. Now, we all waiting for Derek Foster new book to come out.

I recently got a stable job and for the next few weeks, I will be fully load of cash. also recently, I partly sell FR. At first, I wanted to use the money generate from the sell to invest in a dividend stock, but for now, I just have one idea in mind: to invest more in Canadian National Railway Company (CNR). In the immediate time, I won't be earning much in term of dividend. CNR has been among the top stock performer of my portfolio and thinking about it, chances are that CNR will simply continue to gain in value over the years. Compare to Europe, Canada public transportation is similar to a third world country, or almost. Anyway, we have the train. Its not a fast speed one, but still, we have rails. At least.

CNR is the type of idiot proof stock that you can hold with basically any fear. currently, CNR value exceed the $91 per stock. I won't be investing in 100 stock of CNR, just a few ones, not even 20. No matter how big or small is the investment, in 20 years from now, those stocks will probably be worth a fortune and I will probably be able to benefit from them.

I still have an idea about investing in a REIT, but I don't know which one. 

Financially illiterate but real genius. 0)

Is it still raining? I want to go home.

7 comments:

dividend stocks said...

Dividend paying companies with high levels of debt but with large holdings in cash may be safer candidates to lend to, which allows greater financial flexibility to maintain or increase a dividend.

Dividend Date

DVDguy said...

Check out CBO.. nice and stable... healthy Payout.

Anonymous said...

CNR down 4.5% today, don' listen to that douche bag derek foster. The only thing he knows how to do is publish books, and even those are poor effort at best.

Buy low sell high is the bottom line, cnr is close to the 52 week high. Just wait for the usual october crash and pick it up cheap since it is a solid company if picked up cheap

Anonymous said...

CNR drops more than 4.5%. I guess this is the good time to add more this high quality stock in your portfolio

Anonymous said...

The div payout for CNR is less than 2% (this will impact a DRIP). Even a divi ETF will get you more than that. I personally would look for at least a 3% divi yield. That being said there's a history of increases over the years that makes it attractive in that respect. I agree that CNR has been trading high at a premium. CNR states that it anticipates more investment costs to take make way for expansion & updated rolling stock, that will affect its bottom line. 17 analysts call for a HOLD, none for BUY. Bearish events greatly outweigh Bullish ones. Timing for this acquisition will therefore be crucial. There has been a significant dip in price since the early Sept. price highs. signifying sell offs. (Need to check whether institutional). Support appears around the mid $70.00 range. The stock has been generally trending upward but current confirmation is needed before decision. Monitor for a break below the 87.00 level could signal buying opportunity. Anony-mashed-potatoes

Anonymous said...

she probably already bought it

Ruth said...

think there are better buys in stocks than an expensive one like CNR..low payout and there probably won't be a lot of growth, at least with BCE , over 5% dividend and a nice little growth and very secure , they own everything.

 

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