Stuart Olson Inc CUUHF

No Suprise

[flavin87]

No real surprise given their forecast for a loss this year. Not sure why they are surprised that margins are lower given Stuart's focus on CM projects where the margins are a lot lower. Canem and Broda are doing just fine given the market. The real culprit on the write down is Jim Houck whose massive ego to get a deal done ignored all the warning signs of a company at the tipping point. He bought at the top of the market. He also ignored the incompetence at Dominion and lost the few decent managers they had when he goose-stepped into their territory.

I am concerned that Stuart Olson still can't perform and yet the leadership at Churchill is still looking to cut admin costs. Will this not make the problem worse when you cut back on staff, tools, training, marketing, etc. I would think they would be investing in systems and resources to help them perform better. It's the same old story - when you don't know what you are doing just go after admin costs.

One last item - why are they blaming delayed projects as a reason for the decreased revenue? They have done this for two years. Should not the delayed revenue from last year be recorded in this year, offsetting this years delayed revenue?