Thursday, July 06, 2006

Canadian National Railway Storm Clouds

Canadian National Railway (NYSE:CNI) has experienced excellent financial operating results all the while also experiencing increasing rising derailments. This has caught the eye of regulators who are starting to investigate the lack of maintenance and other root causes. When a train derails the track is not available to all other shipments. Has CN pushed it too far? Watch for increased capex in disguised forms as they try to skate onside.