August 3, 2016 CN rail report updated

The report for Canadian National Railway Company is updated and rated Weak Sell / Hold. In Q2 its carloadings were down 11%. Earnings per share were down 0nly 4% as currency exchange, lower fuel prices and fewer shares along with strong cost management cushioned the blow. However the company is projecting an earnings decline of an average of 4% in each of the next two quarters. And its not clear that the decline in car loadings will be reversed anytime soon. CN is a strong company with an excellent record of creating value for share holders. But it now appears that the risk to the share price is somewhat weighted to the downside.

I had a about 1% of my portfolio in this stock having bought it within about the past year in our Tax Free Savings Accounts. I had a gain of 10% in one account and 13% in the other. I decided to sell these shares given the weak outlook and given a desire to have some cash for other investments.