(1888PressRelease)
December 11, 2008 - Mira, Portugal – SADIF Investment Analytics SA, today announced the release of a new equity research report covering Canadian Pacific Railway Limited (CP). The report utilizes SADIF's powerful StockMarks™ stock rating system and is required reading for any current or potential Canadian Pacific Railway Limited investor.
Report Summary: Canadian Pacific Railway Limited operates a rail network stretching across Canada and the USA. The downturn in the economic climate over the past year has caused Canadian Pacific shares to lose 37% of their value since the end of 2007. Investors fear that weakening industrial activity, and shrinking consumer demand will weaken Canadian Pacific's earnings over the foreseeable future. If we examine the company's third quarter earnings announcement from the end of October, we see that Canadian Pacific is already seeing lower carload figures, down 0.7% over the nine month period and down 2.4% in the third quarter compared to the same period in 2007.
Nevertheless, the company increased its revenue per load, boosting overall revenue by 8% in the third quarter. Despite rising revenues, Canadian Pacific was unable to pass all costs onto its customers, resulting in a 2 percent decline in diluted EPS after adjusting for exchange rate impacts on long-term debt and a write down on the company's investment in asset backed commercial paper. Canadian Pacific is expected to benefit from the continued decline in oil prices which were the primary driver behind higher operating expenses in the third quarter. Nevertheless, when assessing Canadian Pacific as an investment target, we should carefully analyze the company's long-term fundamentals. We can assess Canadian Pacific's fundamentals through the use of the StockMarks framework. Canadian Pacific currently has an overall long-term investment-attractiveness rating (Total StockMark or SMT) of 58, rating slightly above the Canadian market average. This rating places Canadian Pacific sixth when compared to ten of its closest peers, selected on the basis of both similarity of business and market positioning factors such as size.
The complete report breaks down the Total StockMark into its three components – Business, Management and Price, performing a thorough analysis of Canadian Pacific Railway Limited for long-term investors.
A summary of the StockMarks™ ratings for Canadian Pacific Railway Limited is available here:
http://sadifanalytics.com/stockmarks/company.php?ticker=CP&cod_country=18
The report has been distributed to Reuters, and forwarded to Yahoo Finance and FT.com. It is available under 'Analyst Reports' from these websites, from multiple professional platforms including Reuters Knowledge, TheMarkets.com and Thomson Research or directly from SADIF-Investment Analytics SA at:
http://sadifanalytics.com/stockmarks/article/hist_article.php?cod_country=18
About SADIF-Investment Analytics SA:
SADIF-Investment Analytics SA is an independent investment research company covering sixteen different markets and over 12,000 companies. The StockMarks™ system is based on proven investment principles and is designed to drive long-term shareholder returns.
###
