Canadian National Needs To Do More

Here is an analysis of Canadian National (CNI) that I wrote for Investopedia.

I wish I had had the space to go into some of the complaints that have been lodged against CNI by its customers, and the possibility of regulatory involvement in Canada as a result. I don't think it really moves the needle with the company or stock, but it gives a different perspective on how the company conducts itself.


http://stocks.investopedia.com/stock-analysis/2010/Canadian-National-Needs-To-Do-More-CNI-UNP-CSX-GWR-KSU0429.aspx

It is an odd quirk of Wall Street that the best operators in an industry do not always get the most respect from analysts and buy-side fund managers. I think the reasoning is basically that the underperformers have the most room for improvement, and this hoped-for improvement constitutes a "catalyst" in the lexicon of the Street.  

So, in an earnings season where rival rail operators Union Pacific (NYSE: UNP) and CSX (NYSE: CSX) have already reported strong earnings, an "all right" performance from Canadian National (NYSE: CNI) gets a cooler reception. 

For the rest, please click on to:
http://stocks.investopedia.com/stock-analysis/2010/Canadian-National-Needs-To-Do-More-CNI-UNP-CSX-GWR-KSU0429.aspx