Monday, June 8, 2015

Recent Purchase

    Due to being home from work today, as work week was reduced to 4 days per week for entire staff at my company, I logged into my brokerage account at the market opening.  The price of the Canadian stocks are delayed by 15 minutes but I can get a snap quote for any particular stock.

    I was looking to average down on my Canadian National Railway position inside my TFSA. I  initiated a position on May 4, 2015 which you can read about here.   For this new purchase, I placed a limit order for $72.64 which was lower the the current snap quote of the CNR share price by about $0.20 per share.  The order was filled immediately as there was a lot of transactions at the market opening.

    The stock is down approximately 20% ytd. The share priced reached at high of $88.89 on February 19. This purchase was at $72.64.  That is an 18.28 percent decrease from the high back in February. Why the fall in price so much?  The governments of Canada and the United States have brought in tougher rules for railways in which they will have to meet such as safer railway cars. There have been a lot of railway derailments over the last few years which involved hazardous chemicals and crude oil. The price of barrel of crude oil has also dropped a lot since last September, when it was around $92.00 a barrel. Canadian National Railway serves 3 coasts in North America. These coasts are west coast of Canada, East Coast of Canada, and Gulf of Mexico.

Click to Enlarge

       I purchased 13 shares at $72.64 for a total cost of $949.32 including commissions. The yield on this transaction is 1.712%.  This recent purchase adds $16.25 to my annual dividend income.

I liked the stock at $79.75, which is my initial purchase price, and like it even more at what is currently trading at.  The stock has fallen trading lower than my purchase price earlier this morning, but I can not time the market and know for sure what is going to happen on the right side of the chart.

I  will update my investment tab in earlier July with this purchase.

Disclosure: Long CNR

I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.


  1. Nice purchase, IP. Ive been eying CNR as average is around $78 and I knew that I was overpaying a bit for a high quality company but didnt mind it. As its down in lower 70s, I might average down as well - just have to wait until my TFSA is replenished.

    Best wishes

    1. R2R,

      Thanks for dropping by. I do not think you can go wrong here at this price for CN RAIL. I hear people on the national business channel here say they see CN dropping a little more in price.

      Purchasing this excellent company definitely helps me sleep better a night.

  2. IP,

    Nice job here. Love the railroads after the recent weakness. After I'm done building up UNP, I think CNI is next. Canadian National's running a great business.

    Enjoy those dividends!


    1. Dividend Mantra,

      Thanks for dropping by. Love the railroads as well, and even more after the recent weakness. Definitely an investment that can make you sleep well at night. I am looking forward to the dividends and the dividend raises for years to come.

  3. Nice job averaging down on this stock.