New name, no bargain

Article Excerpt

STUART OLSON INC. $10.79 (Toronto symbol SOX; TSINetwork Rating: Speculative) (780-454-3667; www.stuartolson.com; Shares outstanding: 24.9 million; Market cap: $270.0 million; Dividend yield: 4.4%) is the new name for The Churchill Corp. (old symbol CUQ). Stuart Olson provides building construction, commercial and industrial electrical contracting, earth moving and industrial insulation services to government and private sector clients, mainly in Western Canada. In the three months ended March 31, 2014, the company lost $614,000, or $0.02 a share. That’s an improvement from a loss of $1.2 million, or $0.05 a share, a year earlier. Revenue rose 15.9%, to $274.6 million from $236.8 million, thanks to rising construction activity in Western Canada. Stuart Olson’s long-term prospects are sound, and the stock has rebounded from its low of $7 in May 2013. Meanwhile, its dividend, which yields 4.4%, appears safe. However, the stock trades at a high 25.6 times the $0.41 a share the company will probably earn in 2014. Moreover, its long-term debt of $154.0 million is…