# Churchill Corporation (CUQ)



## jcgd (Oct 30, 2011)

I work for Canem Systems which is owned by Churchill. We have a share purchase plan and CUQ will match us dollar for dollar up to 5% of our salary. I'm heavy in CUQ (around 30% of net worth) and I'm having trouble deciding what to do. My average price is $14.349 and I've been averaging down every two weeks (when I'm paid).

The dividend yield is now around 4.8% and the share price has been just tanking since I started contributing. The company acquired Seacliff (Canem, Dominion) in 2010.

If this was a typical holding, my choice would be to hold. I'm just curious what others think, looking for advice because my position is so huge.


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## Spudd (Oct 11, 2011)

I'm not at all familiar with this company, but you're getting half your shares for free, and it has almost a 5% yield. Over the past year it's down 32%, so you're still up (because it would have to drop by >50% for you to break even). I would keep investing in it for sure. 

Now as to whether to sell it to even up your holdings, I don't know. First of all is there a vesting period where you can't sell without losing the company match? If so, hold at least as long as the vesting period. That's obvious.

I tend to sell my company holdings as soon as my vesting period is up in order to diversify.


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## doctrine (Sep 30, 2011)

On a standalone basis, I would be cautious in owning the stock has their results have not been great over the last year, especially last quarter. I would like to see a few quarters of good results before entering. In the construction market, I do own shares of Bird Construction, which have good earnings, a P/E of about 15 and a higher yield (5.2%, which has been over 6% at times this year).


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## underemployedactor (Oct 22, 2011)

Pretty tempting at these levels, and trading well below book value. Definitely on my watch list.


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## underemployedactor (Oct 22, 2011)

Any insight as to why this stock has cratered so badly the last couple of days? Obviously not a sector in particular favour but what gives?


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## HaroldCrump (Jun 10, 2009)

They issued a profit warning recently, didn't they?
And earnings announcement must be coming up within the next few days.


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## underemployedactor (Oct 22, 2011)

Yes, quite right, just found the PR from yesterday. Conference call starting right now, so we'll see how they explain themselves.


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