CP Rail (CP) is on a tear. Over the last year and a half, since October 2011, the stock price has risen 150%. It has been growing consistently over the last year, six months, three months and one month. Looking back further, the dividend has been steadily increasing over the last 10 years. This stock has been an investor’s dream come true. (Nothing guarantees that will continue.)

Since late October, 2012, CP has been among the five fastest-growing stocks of the TSX. Because of that, a number of professional investors are cashing in, taking their profits and running. Apparently, new management has taken charge and is focusing on finding efficiencies and cutting costs. There has been positive media coverage and a lot of excitement around this stock.

Because of the quick growth in stock price and all the positive attention, this stock could begin to drop suddenly and quickly. It looks like a very tempting buy, but an owner will want to watch the price very closely for a reversal in fortunes.

CP Rail (CP)

One thought on “CP Rail (CP)

  • February 23, 2013 at 3:14 pm

    From what you are describing I could gather that the stock is almost at peak of its speculative spiral.

    I would probably stay away from it, unless fundamentals are right.


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