For those interested in VALH.
Greetings kauaiPI and Scooby_Do. Thanks for the welcome.
I have been an investor in VALH since June of 2000. Like nearly all OTC stocks, the price of VALH got hammered during the Great OTC Crash of 2000 (as some are calling it). Like many of you, I have continued to research the company since I first bought in.
I met the principals of the company at the annual shareholders meeting in Miami in November and I found them genuine and sincerely interested in building the company. I was especially impressed with Bob Ziner, the Chairman, who went out of his way to spend extra time with me after the meeting was over.
After having met the people and having done my own research, I took advantage of the huge decline in the price and increased my position in December to over 2 million shares. VALH is my largest penny stock holding and constitutes over 11% of my high risk portfolio.
In my view, this company is delivering on its plan to grow through acquisitions. They have grown from little more than a shell in 1998 with less than $1 million in revenues to now over $125 million in two short years.
Now they are going through a process of bringing in solid professional public relations help (Rubenstein Associates) and they are bringing in professional banking advice (Morrison & Kibbey). We can expect results from those initiatives to bear fruit in the not too distant future, in my opinion.
VALH needs better exposure to the investing public. Recently a group of large shareholders joined in a joint email to Mr. Ziner to request that the company begin an information press campaign to raise awareness. While that may not happen immediately, I believe we do have such a campaign to look forward to this year.
The lumber market, which has also seen an unusual decline in recent months, (indeed it is at a 10-year low) has shown signs of reversal in just the past few days. As the fears about the economy continue to abate, the lumber market may do one of its famous counter spikes as shorts are forced to cover. Rising lumber prices will bring in new investors to VALH.
In spite of what one persistent basher of the company would have you believe*, VALH is growing, building its future rapidly and delivering on its business plan. While the profits are not large, they are better than losses.
As lumber prices return to normal, that can only help the bottom line at VALH.
So, this could be an interesting year for VALH. I encourage any of you who have the time to find out more about the company, call or meet the folks at the helm and to watch this undervalued gem return to its rightful price this year.
Where else can you find a company doing over $125 million in revenues, posting profits, growing, with an O/S under 200 million that trades for less than a quarter a share?
LLCCMAN
*rjm2 - a basher that will say anything to trash the stock and who will use personal attacks to stir up trouble on the board. |
