Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
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.