From the Globe & Mail Report On Business
THE OLD RAILWAY IS ON A ROLL
By BRENT JANG - Thursday, January 26, 2006 Page B1 -
Canadian National Railway Co. kept steaming ahead yesterday as its shares broke through the $100 barrier amid a North American rail renaissance.
The stock has been climbing steadily -- a gain of more than 1,000 per cent since Ottawa privatized Canada's largest railway in 1995.
...Investors were applauding the railway's announcements, which were released late Tuesday, that CN posted a record $1.56-billion profit last year; it will undergo a two-for-one stock split next month and raise its dividend by 30 per cent in March.
...Taking stock splits (but not dividends) into account, an investor holding 100 shares worth $2,700 back in 1995 would currently have 300 shares worth $30,372.
..."CN has lots of room for growth and knows how to use it wisely," said transportation consultant Greg Gormick. He said CN has successfully nurtured the government legacy of spare rail capacity, taking advantage of a sprawling network to meet booming demand...
...To be sure, it hasn't been all sweetness and light because CN has had its share of challenges over the past year, weathering hurricanes Katrina and Rita, and suffering a series of high-profile derailments.
Pretty much tells the story. An asset sold off for roughly 10 cents on the dollar. It's biggest asset the 'government legacy of spare rail capacity'. Record profits, and another stock split coming up.
Oh yeah, there's been a couple of derailments, but who cares? Nobody.
When they did this stuff in Russia, at least Putin had the jam to throw the thieves in jail, and return the asset to the people.
Not likely to happen here.