(Source: Financial Post, December 9, 2011)
OTTAWA — The impressive run in Canadian rail stocks this quarter is wearing thin, a stock analyst tells the Financial Post.
Both Canadian National Railway Co. and Canadian Pacific Railway Ltd. are up large since mid-September, rising 25% and 40% respectively. For the year, CN is up 20%, while CP is flat. The stellar performance is thanks to a jump in refined petroleum products this year as pipeline capacity needed to transport oil to global markets remains tight.
But now, signs are emerging that the glut is clearing, which could put a cap on the rails pricing power, a troubling scenario given the recent stock market run.
Full story: Financial Post