CSX from all reports is getting a New CEO. Guess who they are getting E Hunter Harrison. All I have to say and this is from someone in a compieting transporation business is I wish those employees well. We all know his methods from looking at both CN and now CP I just hope CSX can weather the storm so to speak that is him. NS better be ready to pick up a bunch of traffic from customers he loses.
EHH comes across as railroading's version of "Chainsaw Al" Dunlap, a so-called turnaround artist who saved failing companies for the shareholders by slicing and dicing them into profitability. He apparently had no real skills in actually operating any profitable remnants.
Sounds exciting if that happens. Now, with business friendly Trump in the White House and his protege Keith Creel running CP, perhaps they will revisit a potential merger of the two. The dynamics have certainly changed from two years ago. I doubt Harrison would be interested in simply improving the Railroad's performance.. he's been there and done that several times, and he's 72 years old. Moreover, he's given up alot at CP.. a million dollar a year consulting fee plus plus plus.. Likely he has bigger plans, and his interest in mergers is well known. The next couple of years are going to be interesting..
Ulrich Sounds exciting if that happens. Now, with business friendly Trump in the White House and his protege Keith Creel running CP, perhaps they will revisit a potential merger of the two.
Sounds exciting if that happens. Now, with business friendly Trump in the White House and his protege Keith Creel running CP, perhaps they will revisit a potential merger of the two.
The Canadian Government could potentially Nix that...It'll be interesting to see what happens.
"I Often Dream of Trains"-From the Album of the Same Name by Robyn Hitchcock
CSX thought John Snow was a great executive, too.
It's time to add CSX to my prayer list.
NKP guyCSX thought John Snow was a great executive, too. It's time to add CSX to my prayer list.
Nobody that I know thought John Snow was great - as the value of the company and it's shares shrank under his command - then he got a $69M 'golden parachute' to become Treasurer of the United States under Bush. Michael Ward has fought long and hard to have the company recover from Snow's years.
Never too old to have a happy childhood!
NKP guy CSX thought John Snow was a great executive, too. It's time to add CSX to my prayer list.
Harrison on the way, prayer answered.
BaltACD: I stand corrected, but the Board must have thought him great, at one time anyway.
Ulrich: that's pretty funny, actually.
But how can we be sure EHH is the answer to prayer? After all, "By their works ye shall know them," and, from "Two" Corinithians, "And no wonder, for Satan himself masquerades as an angel of light."
Things aren't always as they seem.
Sounds like it has the makings of a hostile takeover with Pershing Square as the leader and Harrison in a supporting role. Shades of "The Children's Fund"?
Norm
NKP guyBut how can we be sure EHH is the answer to prayer?
Depends on what he prayed for.
Remember the joke that ends "Well, Cheryl had a little sin in her life..."?
The guy who makes EHH newsworthy again
Getty Images caption: “Paul C. Hilal, partner with Pershing Square Capital Management LP, listens during a Canadian Pacific Railway Ltd. town hall meeting in Toronto, Ontario, Canada, on Monday, Feb. 6, 2012. Canadian Pacific Railway Ltd.'s support for Chief Executive Officer Fred Green doesn't make sense because the company's performance trails all of its North American peers, the railroad's largest investor said.”
Excerpt from The Globe and Mail, Jan. 19
http://www.theglobeandmail.com/globe-investor/investment-ideas/rail-stocks-surge-as-hunter-harrison-joins-push-for-csx-overhaul/article33668968/
CSX Corp. jumped the most on record after news that outgoing Canadian Pacific Railway Ltd. Chief Executive Officer Hunter Harrison is teaming up with an activist investor to shake up the least efficient U.S. railroad.
Paul Hilal, who worked for years with billionaire hedge fund manager Bill Ackman, is looking to install Harrison in a leadership position at CSX, according to people familiar with the matter.
Excerpt from Strategic Intuition by Zong Z. Peng
https://strategicintuition.co/2015/04/19/value-investing-with-legends-paul-hilals-pershing-square-lecture-at-columbia-business-school-2/
Today (April 14th, 2015) Paul Hilal from Pershing Square came to speak during the “Value Investing with Legends Class.” In his introduction of Paul, Professor Big G (Bruce Greenwald) said this, “The public face of Paul Hilal’s fund is Bill Ackman, the talent to a large extent is standing in front of you.”…
In July 2011, through conversation with his younger brother, Paul learned that there is an under-performing Canadian railway company that investors have lost a lot of money on and have been complaining about, so add the sector to his watching list. By early August, decided to focus on looking at the sector…
Paul cold called Hunter Harrison out of the blue to learn about the railway industry. Hunter is the former CEO of Canadian National Railway, a turnaround legend that fixed two railroad companies, and had retired 18 months prior. Hunter did not know Paul before but spent two and half hour talking to him (Paul’s intelligence, persona, and his status certainly helped I think).
Paul didn’t tell Hunter what he was looking for, didn’t want Hunter to know he was interested in CP, didn’t want Hunter to know he had a thesis, and did not want to bias Hunter’s view, as people (no matter how smart they are) have a tendency to tell you what you would like to hear.
Saw Hunter’s knowledge, insights, communication skills, and passion for railroad continued to burn bright, knew this is the guy to turnaround the company.
On September 27th 2011, persuaded Hunter to come out of retirement.
Read somewhere today that Hilal is only capitalized to $1B for this 'fight'; doesn't sound like much of a war chest.
Can anybody confirm that Harrison and Creel are related? For the past 5 years I have heard Creel is his son-in-law... is this true? I hear he is from some, and others say no. Whats the answer?
Is it possible that today's CSX will soon be playing the role of the Erie Railroad in that famous late 19th century drama for control of that company by some very rapacious people?
Two-bit greenmailers.
This whole set of scenarios sounds a bit like scenes from an old 'Snidley Whiplash' melodrama...Has anyone got any 'solid info' ?
[ For those of us who do not remember who, and what Snidley Whiplash was: "... his personality is a one-dimensional, over-the-top, openly evil villain of limited intelligence who comes up with elaborate schemes for the hero to foil — kidnapping a helpless female and tying her up to either a railroad track or a Conveyor Belt-O-Doom, in an attempt to coerce her into "marrying" him or relinquishing the deed to her property, is the old standard. He can usually be expected to go to great lengths to cheat at things he could easily win legitimately..." Snidley was often the villan in the "Dudley Do-Right" cartoons, and those involving "The Perils of Pauline" ]
Just sort of seems to fit the Pershing Square group types, and EEH
samfp1943 This whole set of scenarios sounds a bit like scenes from an old 'Snidley Whiplash' melodrama...Has anyone got any 'solid info' ? [ For those of us who do not remember who, and what Snidley Whiplash was: "... his personality is a one-dimensional, over-the-top, openly evil villain of limited intelligence who comes up with elaborate schemes for the hero to foil — kidnapping a helpless female and tying her up to either a railroad track or a Conveyor Belt-O-Doom, in an attempt to coerce her into "marrying" him or relinquishing the deed to her property, is the old standard. He can usually be expected to go to great lengths to cheat at things he could easily win legitimately..." Snidley was often the villan in the "Dudley Do-Right" cartoons, and those involving "The Perils of Pauline" ] Just sort of seems to fit the Pershing Square group types, and EEH
Harrison will be carried away on a stretcher grasping his heart after one meeting with CSX Executives I can guarantee it.
"We thought we would do better this quarter as projected but ran into unexpected headwinds, blah, blah, blah"..........he-he-he. Oh the past memories of me being a patient investor in that company.....:)
EHH has ditched claim to C$118M, so he's not in this for the money. How about CSX gives him the Service Design job. Might be a AVP level job at CSX (just a director level job at NS). It's where he staked his claim.
If he's after validation, he'd take it.
But, if it's just an ego trip....
-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/)
oltmanndEHH has ditched claim to C$118M, so he's not in this for the money. How about CSX gives him the Service Design job. Might be a AVP level job at CSX (just a director level job at NS). It's where he staked his claim. If he's after validation, he'd take it. But, if it's just an ego trip....
When you are 72 - everything other than a Wal-Mart greeter is a ego trip.
BALT: Who is your fortune teller ? You seem to have been told the perfect time to retire ?
blue streak 1BALT: Who is your fortune teller ? You seem to have been told the perfect time to retire ?
No fortune teller. Seeing individuals that I had previously respected advance to high positions of power and making decisions and policy that in my humble opinion were improper and wrong and they thus lost my respect. If you can't respect the leaders you might as well distance yourself from the organization if you can.
BaltACD If you can't respect the leaders you might as well distance yourself from the organization if you can.
If you can't respect the leaders you might as well distance yourself from the organization if you can.
Amen to that
Greetings from Alberta
-an Articulate Malcontent
In Pres. Trump's inaguration speech, he stated the theme for his presidency would be "America first". He also indicated he did not like American companies moving overseas or being taken over. He has previously said Canada would also be the subject of NAFTA renegotiation. I just don't see the incoming administration being friendly to a CP-CSX merger.
I don't think President Trump minds foreign ownership or partnerships in the US...as in Toyota is welcome as long as they provide investment and employment for Americans. It is when they make cars in Mexico to sell in the US. That kind of thing.
Canadian/US trade is enormous and one of the most balanced, if not the most balanced trade $'s in the world, with each selling and importing a fairly equal amount. There are problems in NAFTA as far as Canada/US goes that need to be addressed for sure but its more along the lines of tweaking. Mexico is a completly different story however. Imbalances are huge in favour of Mexico.
CP-CSX ...not going to happen for all the same reasons as CP-NS.
Cripes can't these guys retire with their hundreds of millions and lay on a beach somewhere and/or build a wicked model railroad.
Need a legacy with all that loot?....build the T1 and might as well fund a J3a and a Niagara just for the fun of it. Not a lot for these guys.
BaltACD blue streak 1 BALT: Who is your fortune teller ? You seem to have been told the perfect time to retire ? No fortune teller. Seeing individuals that I had previously respected advance to high positions of power and making decisions and policy that in my humble opinion were improper and wrong and they thus lost my respect. If you can't respect the leaders you might as well distance yourself from the organization if you can. Note: Rule#1 [The Peter Principle]:"...When you’re great at something, you might get rewarded with a promotion … into something you’re terrible at. A typical example, Peter said, is if you’re a great rule-follower who suddenly is placed in charge of making rules and decisions. You may well freeze up in your new role or gum up the productivity of everyone else..."
blue streak 1 BALT: Who is your fortune teller ? You seem to have been told the perfect time to retire ?
Note: Rule#1 [The Peter Principle]:"...When you’re great at something, you might get rewarded with a promotion … into something you’re terrible at. A typical example, Peter said, is if you’re a great rule-follower who suddenly is placed in charge of making rules and decisions. You may well freeze up in your new role or gum up the productivity of everyone else..."
Holy smoke, everyone's acting like "Vlad the Impaler" Putin's coming with a division of Russian paratroopers.
It is gospel that EHH is taking over CSX, or is this just wild speculation?
http://www.doublehfarm.org/contact.php
http://eqliving.com/hunters-jumpers-no-imgs/
http://www.phelpssports.com/printarticle.php?id=8512
I like the one with The Boss.
A crew that was long on the Clintons crapped-out and are rattling the market to get out from under a sunk position.
MiningmanCanadian/US trade is enormous and one of the most balanced, if not the most balanced trade $'s in the world, with each selling and importing a fairly equal amount. There are problems in NAFTA as far as Canada/US goes that need to be addressed for sure but its more along the lines of tweaking. Mexico is a completly different story however. Imbalances are huge in favour of Mexico.
Hardly. The trade imbalance with Canada is ~$15 bil.; with Mexico ~$63 bil.. Larger, yes, but hardly the misimpression you gave of "balanced."
C&NW, CA&E, MILW, CGW and IC fan
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