THE CHURCHILL CORP. $12.40 - Toronto symbol CUQ

THE CHURCHILL CORP. $12.40 (Toronto symbol CUQ; TSINetwork Rating: Speculative) (780-454-3667; www.churchillcorporation.com; Shares outstanding: 24.3 million; Market cap: $301.3 million; Dividend yield: 3.9%) reports that its revenue rose 9.4% in the three months ended March 31, 2012, to $333.3 million from $304.7 million a year earlier. That’s because the industrial services company’s mining and oil sands clients increased their construction activity.

Even so, earnings fell 46.6%, to $3.1 million, or $0.13 a share, from $5.8 million, or $0.24 a share. That was mostly due to lowprofit- margin contracts that the company took on as part of its recent acquisitions, or when its markets were more competitive in late 2008, 2009 and early 2010. Most of these unfavourable deals should be completed by the end of this year.

Churchill is still a buy.

A professional investment analyst for more than 30 years, Pat has developed a stock-selection technique that has proven reliable in both bull and bear markets. His proprietary ValuVesting System™ focuses on stocks that provide exceptional quality at relatively low prices. Many savvy investors and industry leaders consider it the most powerful stock-picking method ever created.