Tuesday, September 21, 2010

Ride the rails, ey

According to the Economist, America has one of the best freight rail infrastructures.  This is largely due to the lack of high speed people movers getting in the way.  While most in the U S of A don't take a train daily, most goods are transported for some distance on trains. As long as goods are being shipped, the rail companies make money.  Canadian National Railway (NSYE: CNI) connects the Atlantic, Pacific, and Gulf of Mexico with over 21,000 miles of routes.  So why buy them instead of any other rail company you've heard of (like CSX or Norfolk Southern)? 1) They are bigger. 2) They trade at a lower multiple. 3) They generate more earnings per share.  Plus, if you own them you are allowed to say 'ey' at the end of every sentence, just like a true Canadian.

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