Stuart Olson Inc CUUHF

RE: capitalization

[flavin87]

I agree. I was just looking at the market cap of other companies when I came across your comment. The individual companies that comprise Churchill are not the problem. They are being led down the garden path by a CEO that does not understand construction and whose only vision is to consolidate overhead rather than to develop a culture focused on profitability and growth. The investors do not have confidence in a CEO that is past his prime and who is focused on dressing up the company to sell.

In looking at the 52 week high of Bird and Aecon, they are off  and 9% and16% respectively. Churchill is off 35%. Churchill's market cap is $290m versus $577m for Bird and $609 for Aecon. These two companies are being led by career construction people and not by some retread CEO from the gas industry. Unlike the gas and oil industry where you get rich by putting pins in a map and then pump your product into a global market, the construction industry requires a complex strategy revolving around developing people and culture and fighting for every edge and advantage. When you don't know what you are doing, you focus on cost cutting and consolidation.

This also highlights the weakness of the board of directors who stand by and watch this kind of performance happen.