Churchill (CUQ), PE of 3! Message Board

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Gold/Mining/Energy : Churchill (CUQ), PE of 3!

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To: speculatingvalue who wrote (243)	5/3/2000 11:10:00 AM
From: Far Side	Read Replies (2) of 264

Churchill Corp. would be a Warren Buffett favourite if it was in the U.S. The management of this company is honest and old fashioned in its approach to business. That's a complement BTW because the Board of directors know they must work and deliver increased shareholder value. Let's review the past year's performance: Construction revenue increased to 228 million from 211 million last year. Earnings came in at 6.5 million, a 35% increase from last year number of 4.8 M. Net earnings increased 27% to 3.4 M from 2.7 M in 1998. EPS were .32 cents up from .27 in 1998. Book value is sitting at 1.86 cents per share. Return on equity was 19% . Excellent performance ! On here is the good part, they have 15 million in working capital. The balance states they have 28,329,000.00 in cash and short term deposits. With only 10.4 million shares outstanding that tells me the company is worth $2.72 per share based on cash and ST deposits. Am I wrong ? And they clearly state they want to achieve 500 million in revenue in the next five years (through future acquisitions) with a focus on the higher margin :) industrial contracting market. "Our growth strategy is consistent with Churchill's demonstrated ability to make construction acquisitions and successfully integrate diverse construction operations. We have invested in our ability to assess, integrate and manage new businesses and are presently pursuing several interesting opportunities" The company will always maintain a healthy 1:2 debt to equity ratio. you can be sure. Right now, as we all know, they have NO DEBT. As for the future outlook: "Work in hand is an indication of future revenue over a period of up to 18 months. Churchill had $199 million of work in hand on December 31st 1999. - almost one year of revenue - compared to 155 Million last year." Geez...I'd say this company is poised to grow significantly in the right direction. They are going NORTH in my opinion. Farside

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