Saturday, November 27, 2010

Valuation of Canadian National Railway Company

Canadian National Railway Company ( ) (NYSE: CNI) together with its subsidiaries, engages in the rail and related transportation business in North America. As of December 31, 2009, it operated approximately 21,000 route miles of track. It was founded in 1922 and is headquartered in Montreal, Canada.

As of December 31, 2008, it had a net income of $1,550,679,000. It had long term debt of $6,059,512,000 and net tangible assets of $8,587,240,000.

Canadian National Railway Company is in the Railroads industry. Its competitors include Canadian Pacific Railway Limited, Norfolk Southern Corporation, and Union Pacific Corporation.

Canadian National Railway Company has a number of sustainable initiatives underway. They use a method called Precision Railroading which allows them to move more freight with less railcars, thereby reducing their carbon footprint. From 2007 – 2009 they invested in 125 new fuel efficient locomotives. They have instituted better management practices to reduce fuel use in transit and their rail yards.  At their facilities, they have implemented recycling programs, water conservation and material use reductions. They also participate in the Carbon Disclosure Project ( ). However, they serve both sustainable and unsustainable industries when it comes to moving their freight.

This is a Green Business, because of its basic business model. It is properly valued due to its good market position and strong financial fundamental. However, it needs to stay ahead of the curve and reach the level of a Basic Green Business by stopping the hauling of coal and other petrochemicals and related products.

Yahoo Finance
Canadian National Railway Company website

Wednesday, November 10, 2010

Valuation of Chevron Corporation

Chevron Corporation ( ) (NYSE:CVX) operates as an integrated energy company worldwide. It was founded in 1879 and is based in San Ramon, California.

As of November 9, 2010, it had a 52 week stock price range of $66.83 - 85.79. As of December 31, 2009, it had a net income of $10,483,000,000. It had long term debt of $10,130,000,000 and net tangible assets of $87,296,000,000.

Chevron is in the Major Integrated Oil & Gas industry. Its competitors include BP and Exxon Mobil Corporation.

Oil is the primary source of their revenues and most of the money they invest year to year goes to oil operations. They are one of the leading oil producers in the deep waters of the Gulf of Mexico, and one of their deep water wells is 26,700 feet below the surface of the water. They intend to continue in the oil business despite their claims that they have environmentally friendly practices. Chevron also invests and owns coal mining operations.

Chevron does invest small quantities, in comparison to its oil operations, into solar energy, energy conservation, hydrogen and fuel cell technologies, and geothermal energy. They currently have at least one facility which has been LEED certified and they plan on more LEED certified facilities.

Chevron is an Anti Green Business, because its basic business model degrades the environment. It is currently highly overvalued.

Yahoo Finance

Chevron Corporation website