Missing the point hereSome of the overseas plants are working as low as 35% capacity. And they still made money. Can you imagine when Tellier is finished? He is going to cut manpower, plants, expense, get government concessions, etc. Land is so expensive across the pond, they will sell off, which will more than cover shutdown expense. Now facilities and manpower have got to be a large part of their manufacturing expense. I am not smart enough to even imagine what that will do to their cash flow.
He dumped the section head and took over the role himself. Like he doesn't have enough to do. But he did that at CN till he found a guy smarter than him, he is the new CEO of CN when Tellier left. Sounds like the kind of guy I want running a company I am heavily invested in. This guy is a worker and producer. When he says something is going to happen, it happens, no chance of anything else, look at his history. And he expects the same from his top people. By now they must understand, follow the path he sets or you are gone.
Period
He has been working on the transportation department for five or six weeks, so Europe knows what is in his head. Can you imagine if a train order there goes to someone else, and Tellier shuts down the local plant. Where do you think the rest of the orders go. I bet they can't wait to give Tellier orders so the plants stay active.
Big concern about the Canadian exchange rate. Its chump change to the improvements this man will make to the bottom line.
Big concern about their pension plan. If the market keeps improving that will be history shortly, like GM.
Big concern about debt rating. With all this stuff going on, the next review, at the very lest, will show an upward trend.
Big concern about analysts ratings. Trust me, they will be saying buy when it breaks 10 bucks. These cowards follow the stock price, not the company. The few that try rate by what they think can't always be right, and when they do call it wrong the papers jump on them.
I hope all you bashers are right, and the stock goes down, lots, cause my credit line is just dying to be put to work.
My largest holding, and with you bashers help, about to get bigger.
later
geno