EFTA Document EFTA01415817

Subject: Canadian rails rollout at DB may be of interest: Sell on CNI, Buy on CP From: Joshua Shoshan Date: Wed, 01 Nov 2017 07:52:36 -0400 To: "Paul Barrett - Alpha Group Capital LLC ( )" < MIMM > Cc: Martin Zeman Xavier Avila Stewart Oldfie Vahe Stepanian Davide-A Sferrazza Liam Osullivan Hi, Paul. DB's Seldon Clarke initiated on the Canadian Railroad industry last night with a bold call to sell CNI and buy CP as he sees an "overall market share and earnings trajectory driving a reversal in recent relative value trends" between the competitors. In a nutshell, Seldon sees each railroad on a separate track: one having gone from significant market share/- top-line/EPS growth to now facing tough comps (CNI i.e. "A victim of its own success")...and the other going from investing to harvesting/growth mode, as it pivots from a cost takeout story to a revenue growth one (CP). In his 80- page Deep-Dive, Seldon includes lots of helpful data/charts to hit his point home, like how CNI's cost advantage over CP has effectively been eliminated and CP's improving service quality vs. CNI. He also includes a refreshed primer on the NA rail industry . . . Best regards, --Josh fcid:[email protected] Joshua Shoshan Director I Key Client Partners - US DB Securities Inc Deutsche Bank Wealth Management 345 Park Avenue, 10154-0004 New York, NY, USA All trade execution information contained herein is being provided as an EFTA01415817 accommodation at your request in advance of your receipt of the official trade confirmation(s). Additional trade detail information available upon request. The terms of the trade(s) may be subject to change prior to settlement, and therefore the official trade confirmation(s) and account statements issued by Deutsche Bank shall govern. Deutsche Bank is not responsible for any discrepancy between the informal execution report and the official trade confirmation(s) or account statements. This email may contain confidential and/or privileged information. If you are not the intended recipient (or have received this email in error), please notify the sender immediately and delete the email from your computer. Any unauthorized copying, disclosure or distribution of the material in this email is prohibited. KCP products and services are intended and available only for persons who are sophisticated institutional investors within the meaning of the FINRA Rule 4512(C)(3), and who are capable of evaluating the strategies, characteristics and investment risks of, and exercising independent judgment in evaluating, the ideas and products discussed herein. Trades and transactions are subject to relevant internal approvals of DBSI or its affiliates prior to execution, and the execution of any transaction or idea discussed herein is conditional on your becoming a client of Deutsche Bank. Key Client Partners (KCP) products, investment ideas and solutions and related matters discussed herein are provided for discussion purposes only, and strictly on a non-advisory basis. The KCP Americas desk does not provide investment advice. The information set forth herein is confidential and personal to you and is being presented for your information and for discussion purposes only. Any reproduction and/or redistribution thereof (in whole or in part) or disclosure of its content without our written consent is strictly forbidden. This communication does not create any legally binding obligation on the part of DBSI or any of its affiliates. This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication EFTA01415818 in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Please refer to https://db.com/disclosures for additional EU corporate and regulatory disclosures. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. EFTA01415819