fwiw....DD I stole from an RB poster on VALH:
By: BuySell
Reply To: None Monday, 6 Sep 1999 at 7:56 AM EDT
Post # of 1888
Why you should buy VALH
and other thoughts. I figure there will be many new visitors to this site in the coming days and thought I'd help them along understanding VALH.
I borrowed the information below from Patsy's VALH post # 1777 which sums up a lot of what has been taking place with VALH this year.
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I have researched VALH extensively and have accumulated heavily. WHY, just read on.
First you need to see what Value Holdings (VALH) bought:
John Ziner Lumber Co. Limited
Ziner has been in business since 1962 and has grown into one of the largest and most technologically advanced remanufacturing facilities in Ontario:
-http://www.interlog.com/~interweb/ziner/about.html
On Feb. 26,1999 Value holdings (VALH) announced that its wholly owned subsidiary Network Forest Products finalized its purchase of substanially all the assets of John Ziner Lumber for 19.8 million Canadian dollars.
-http://www.valueholdings.com/022699pr.htm
An article on Ziner Lumber artificial intelligence systems:
-http://www.idirect.com/~nfhome/ziner.htm
Web site of Value Holdings:
-http://www.valueholdings.com/
Fully reporting to the SEC
A major announcement on 6-15-99 followed by another major announcement on 6-16-99:
-http://www.biz.yahoo.com/n/v/valh.html
Harron Hardware agrees to buyout-wholesale distributor
-http://biz.yahoo.com/bw/990722/fl_value_h_1.html
Michipicoten First Nation-joint venture
-http://biz.yahoo.com/bw/990616/fl_value_h_1.html
Letter of intent to purchase Cutler Forest Products & Seabright Wood Fabricators
-http://biz.yahoo.com/bw/990819/fl_value_h_1.html
Using latest technology to increase productivity.
-http://biz.yahoo.com/bw/990824/network_fo_1.html
Article on how Robert Ziner DOUBLED REVENUES between 1993 and 1997 for John Ziner Lumber Co.
-http://www.valueholdings.com/022699pr.htm
Now if you have taken the time to do the DD you will understand what I'm going to say.
Value Holdings was just a so-so company, no better no worse than any other OTC-BB issue. All they had was Camis Seafood and Eye-World then along comes the purchase of Ziner Lumber Co. after that they're buying a wholesale distributor. HMMMMMMMM let's see what that means from a business point of view, cut the lumber that you own and sell it to a company that you own and cut out the middle man.MORE PROFITS. Next work up a deal with Michipicoten First Nation which is actually an Indian tribe which means relaxation of quotas by the government because of the minority ruling and build pallets by using low grade lumber that would otherwise be considered waste or for low value uses. HMMMMM no waste, MORE PROFITS.
Next go after one of the largest wholesalers and fabricators of wood products in Ontario,Cutler and Seabright, another way to sell to yourself therefore cutting out more middlemen which in the long term means more bottom line profits that you as a company get to keep.
Get you a CEO who KNOWS what he's doing and has hands on experience in the lumber business and has successfully shown that he knows how to create revenues.
Now use the latest technology to increase productivity and increase customer service. Technology that will determine the optimum way to cut each board which will, in the long term,mean more profits to the company.
Now what we have here is a very calculated business plan that is outstanding.VALH is a long term hold for me. Housing starts are up, lumber futures are up. VALH is in the process of making acquisitions that will greatly reward the ones who truely stay long.
And this assessment from SI-
taken from June 15, 1999 10Q
For the period March 1, 1999 to April 30, 1999, sales from the lumber operation were $8,293,505. Proforma sales taking into consideration the lumber operation as if the acquisition had taken place on November 1, 1998, would be $18,963,717. or an additional .106 per share earnings
this would add up too .11+ per share x a conservative PE of 10 =$1.10 stock
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