Canadian National Railway Co T.CNR

Is this a good entry point

[tkjcabot]

CNR has won the bidding war - at least for now  and it is trading well below its 200 day moving average of $138.
Considering that that a chart of the company's PE points to a  low PE ratio  of  18  and the  Projected 2022 EPS is 6.65, and that suggests a low price of ~ $120.
The accquision may effect the earnings in the short term, but being able to buy this below $120 woulf be a gift.
In fact I'm happy buying this at market being $125.80 in fact I would buy all the way up to $138
I'm in the proces of developing a spreadsheet that points to a possible entry and exit points

[Justhalffull]

Guess the big risk for CN is if the US nixes the deal.  That would mean losing another $1 billion in breakup fees on top of the $700 million they have already agreed to pay to CP due to that failed bid, but also the cost of disposing of the shares held in the trust account that they had to pay the takeout price for.  Who knows what they would get for them, but there will be 90 million or

[tbnorthstar]

Market is angry and having a hissy fit here. This could continue for months and months as the story plays out. I will be a buyer of additional shares if we see sub 125.00 moving forward, the lower, the better. Am a long time shareholder and will continue to be one....

[bagcheese]

Couldn't agree more and why are there people on this board essentially making notions that if the deal gets ended its bad. If the deal with KCS gets ended, it will be a race to $150 for the SP.  IMHO the first and only single railroad company with ownership of North America wide rail access Canada - USA - Mexico is a massive massive thing now and even more so as the future approaches

[Justhalffull]

If you think that, then you do not understand the details of the offer.  Why do you think TCI  management, a 3% holder of CN advises to walk away.  They feel CN is making a $2 billion dollar bet (700,000,000 to CP in break fee and $1,000,000,000 break fee to KCS if the CN deal fails) that the deal goes through.  But if it doesn't, they will be stuck with 90 million plus KCS

[domcolumba]

justhalffull You need to try some valium or uppers as they used to call them. Dom

[Justhalffull]

Just digest the facts, and abandonen your hopes.  If you can't digest the agreement, you are the one who needs something.