As the historic Canadian Pacific Railway Ltd. (
) delivers a stellar third quarter and is anticipating a
record-breaking 2013, Guru
reduced his large CP position by almost one-third, according to
Real Time Picks
William "Bill" Ackman, CEO of Pershing Square Capital Management,
holds a concentrated portfolio of only 10 stocks, one of them new,
and a total value of $10.95 billion. The fund's
quarter-over-quarter turnover is 8%.
Here's a look at Ackman's high-impact reduction of a railway that
was formed as Canada's lifeline, uniting the provinces of the vast
country. In 1867, Canada's confederation joined far-flung provinces
to form a new country with the promise of this railway.
Canadian Pacific Railway Ltd. (
Impacts Portfolio: -9.16%
Current Shares: 17,159,888
Up 56% over 12 months, Canadian Pacific Railway Ltd. has a market
cap of $25.12 billion; its shares with a P/E ratio of 35.80 and a
P/B of 4.50. The dividend yield is 0.95%.
Incorporated in 1881, Canadian Pacific Railway Ltd. provides
freight transportation services, logistics solutions, and supply
chain expertise in Canada and the United States. The company's rail
network is spread across an area of 14,400 miles, serving the
principal business centers of Canada from Montreal, Quebec, to
Vancouver, British Columbia, and the U.S. Northeast and Midwest
regions. The company transports bulk commodities, including grain,
coal, sulphur, and fertilizers; and merchandise freight, such as
finished vehicles and automotive parts. The railway also transports
forest products, industrial and consumer products, and a variety of
other products and raw materials.
The company reported financial results for the third quarter of
2013, with a hike in net income of 45%, at $324 million. Quarterly
revenue was $1.5 billion, marking the highest revenue quarter in
the history of the company, and representing a 6% increase in
revenue year-over-year. Canadian Pacific's adjusted net income was
also up 48% at $331 million for the third quarter of 2013. Record
quarterly earnings of $1.88 (adjusted EPS) also rose 45%
year-over-year. In the first nine months of 2013, the company's
balance sheet shows free cash of$318 million, compared to $21
million in the same period of last year.
Canadian Pacific Railway's CEO, E. Hunter Harrison commented on his
company's performance in a company press release: "By all
standards, this was an outstanding quarter. The company's focus on
service execution while controlling costs is a testament to our
team of dedicated, hardworking railroaders. What we have proven
this quarter is the ability to drive earnings growth and lower our
operating ratio, even in a softer volume environment. That's the
power of the CP plan."
As of Oct. 24, 2013,
reduced his position by 28.97%, selling shares in the average price
range of $141.72. The current price is $143.37, with a change from
average up 1%.
Ackman's highest gain with CP was 150.3% when he made a new buy of
4,040,235 shares at an average price of $57.28 in the third quarter
of 2011. He held for four quarters and averaged a gain of 143% on
24,159,888 shares bought at an average price of $59.06 per share.
Track historical pricing, revenue and net income:
Numerous gurus hold CP and there is active insider
Activist investor Bill Ackman formed Pershing Square Capital
Management in November 2003.
If you are not yet a Premium Member, we invite you for
7-day Free Trial
Use the GuruFocus Value Screen to find
and discover potentially deep value stocks held by billionaire
Real Time Picks
" reports the stock purchases and sales that Gurus have made
within the prior 2 weeks. The report time lag can be as short as 2
days after the date of the transaction. This feature is for Premium
About GuruFocus: GuruFocus.com tracks the stocks picks and
portfolio holdings of the world's best investors. This value
investing site offers stock screeners and valuation tools. And
publishes daily articles tracking the latest moves of the world's
best investors. GuruFocus also provides promising stock ideas in 3
monthly newsletters sent to