RE: RE: RE: RE: RE: $144.25 Cdn Justin, my question is - what is a fair price for CP stock at this juncture in your opinion? CP has been acting as a momentum stock for a solid year now:
- Mgmt identifies what need to be done to improve results - stock goes up
- Mgmt is working on the tasks they've identified and communicate it to the markets on a regular basis - stock goes up
- Mgmt reports results/explains next steps - the stock goes up
Now, at some point, at some share price level, the market ought to question whether:
- CP will be able to improve customer service quarter after quarter with 4,500 less employees
- productivity will improve from disgruntled workforce
- big accounts will agree to pay higher prices since all companies are trying to cut costs themselves, not just CP.
- economy will be condusive to CP's aggressive growth estimates (intermodal, coal, potash - can slow down any time - nobody knows the future extending into 2016)
- stock market and credit markets will be as favorable as they have been in the last 6 months - when QE is finally pulled ALL stocks will pull back... Not sure if you had a chance to watch/listen to Bernanake today, but he stated that if QE is pulled equity markets will tank. Do you realize that CP is up +76% in 8 months and doulbed from a year ago?