Monday, March 5, 2012

Predicting Piece


Does Cp Have a Promising Future?

Authors Note: this is my predicting piece about how I think the stock CP will do very well in the future.  

When you want to be a stockholder and have no clue what stocks to get or what key points you want in a stock, things can get confusing and get very boring quickly. The TV show Mad Money says that you should do a MINIMUM of 1 hour for researching the stock each week! The normal person wouldn’t do that including me, so just get a stock you think will do well.

The stock cp (ticker symbol for Canadian Pacific Railways) which is found in the New York Stock Exchange (NYSE) looks like it has great potential. Cp’s main competitors are Ups, Fed-X. Cp was on a downfall from the past 8 years being so called the “Trucking Highlight” because people thought that trains burned too much fuel. Just recently cp discovered they now have an advantage over the ground and air shipping corporations. See unlike semis or airplanes, trains can add more boxcars to expand their payload. Journalists thought that if you add the load, the engine will bur even more fuel. Well, they were wrong.

            Not many people know this, but in 2006 they came up with the “pres” of trains. This monster can pull 75% more than the previous module and only uses half of the gas. Its 500 gallon fuel tank lasts forever. And to make the train eco friendly the engine uses biofuel that is not only good for the motor but the train gets more miles to the gallon. So while shipping companies increase their prices because of the upwards hike of gasoline prices cp won’t have to do that because biofuel doesn’t change in value.

            Part of Cp’s downfall was that they only did major contracts for 2 years. Recently the board at cp was talking about beginning a program that will let the average American ship through the railways for 75 percent less than it would cost to use U.P.S. so if the thought does go through everyone can ship anything from 1 box to 300 boxes. Cp has realized it is a major area for income.

            In the past 5 years, cp has also came up with a patented design where there is a computer chip inlaid in the stern left wheel and as it goes past a possessor that is posted every 70 miles, they transmit the information that is in the chip which would be what cargo is in the car so people can track if their delivery is on time. With the stock information, cp is predicted to have a major inflation that will start Shorty. They give a 4.50 dividend which is a lot for a stock because compared to McDonalds they give a .32 dividend.

            Although a popular TV show says that you should spend 1 hour on each stock, tv isn’t always right.  If you do very minimal research and you found a stock that you like chances are that it will do good.