Stuart Olson Inc CUUHF

New Investor!

[SurfForWealth]

I bought into this stock last week, 1,000 share at $2.66 & wanted to share my thoughts on it. I have been studying it & waiting for a pullback over the last few weeks. It appears to be a solid company with a good history of generating good earnings & cash flow. With regards to the share buyback, many companies announce intentions but few actually buy shares or at least not very many. One concern with this stock is poor share liquidity (low trading volume). Further reducing the float would only make it worse. I don't think buying back stock is actually the best plan. I think they should initiate a dividend. Divendend stocks are starting to be attractive. They can easily afford to do this. A 5% dividend would attract more investors and cost them only about 14 cents per annum at current share prices. Trailing 12 month earnings are 69 cents. It is a low margin business but a great cash generator at current cheap valuations. Positives are low P/E, under 4, Price/Book of about 1, Price/Sales of .10. Flush with cash, approx. $24M, working capital $21M, compared to market cap of about $28M. ROE was very impressive at 29.8% in 2000, 21.9% in 1999 & 44.1% in 1998. Debt is near zero. Backlog is at record levels of approx. $240M. Good historical revenue & earnings growth. Net margins at record levels. Better fundamentals than comparable ARE. Negatives? P/E, P/B is above historical norms. Recession could hurt results. Recession and/or screwups could cause damage to earnings with low margin business. O & G sector could see future downturn. Seems like a pretty good bet to me at current share price. TA looks pretty decent IMO. Comments welcome, Cheers!!!