Yesterday I decided to part with my position at a slight loss. $CNR (-0,29%) position with some loss... 🚋
As one of my first major investments and also intended as a long-term position, I decided to do so at the time after only a brief look at the superficial key figures. I wasn't really involved here yet and was in the "just try it out" phase. Of course, I also paid far too much for the paper... 😥
Due to the fact that I am taking my journey in the stock/investing universe more and more seriously and I am constantly trying to sift through more information and evaluate it better in order to make informed decisions. Yesterday I decided to draw the line here, mainly due to the management:
When Tracey took over Q1/22 it looked something like this:
EPS C$1.32 // long term debt C$13.383M // net debt to EBITDA 1.92 // shares out 700M
Arrived today in Q3/25:
EPS C$1.87 // long term debt C$21.120M // net debt to EBITDA 2.54 // shares out 620M
Only 6% growth was reported for earnings, and CAPEX of C$2.8B was announced again. The outlook remains at the lower end of the range with mid to high single digit EPS growth...
In addition, there is also the increased pressure from direct competition from CPKC.
During this time, around $8B in new debt was raised (at fairly high interest rates) to buy back shares at the highest valuation. At the same time, the growth prospects are not really exciting and there is a lot of turnover in the management team.
For me, the new M-team does not seem to be really experienced and the handling of the capital allocation is more than questionable.
That's why I'm calling it a day for now ❌
In any case, I've learned something again with this stock and hopefully I can and will project this into the future. I'm now taking much more time with the evaluation and can hold back instead of immediately dumping my money into the market (individual stocks).
I haven't quite thought about where to allocate the money I've freed up yet, but I'm already interested in taking a position in $CP (-0,4%) or possibly $UNP (-0,42%) build up.
I know it's looooong 😂But the valuation of $CP (-0,4%) is currently coming down even further, the growth story seems interesting and the management also looks good.
I may also use the money freed up to increase other positions in the portfolio, we'll see.
Do you have any tips or experience in this regard? Do you check the figures first or whether the management can/will deal with them?
