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Stephen Takacsy, B. Eng, MBA Velan Inc VLN-T WATCH Dec 11, 2024

Bought in just before the takeout deal was nixed by the French government. Rocket ride lately on the nuclear bid hype, so he sold. De facto world gold standard in nuclear valves. Cheap vs. tangible book value. May buy again if cheap enough. Sees eventual takeover.

$10.480

Stock price when the opinion was issued

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BUY
Business has had strong financial results the past few quarters. Significantly increased gross margins. Turnaround plan is working as hoped. Very under valued company. Happy with improvements in corporate governance. Industrial valve backlog in orders. Expecting share buybacks to start soon (next year). Believes company is worth over $20 a share.
Unspecified
It is a valve maker where the end markets have great importance, especially energy and nuclear. Has a strong backlog. He is one of the activists pushing hard for the company to sell to a strategic partner for better profitability. Has a new CEO who is doing very well. Trading well below liquidation value.
PAST TOP PICK
(A Top Pick Jan 20/22, Down 42%) It is a world leader in the design and manufacture of complex industrial valves and is the gold standard for nuclear valves. It has completed a successful turnaround plan and has a record backlog of of high margin business. Trading at less than 1/3 of book value, it is one of the cheapest value stocks. No analysts cover it. He and several other institutional investors are pushing for the sale or privatization of the company to unlock shareholder value. The stock is worth much more than $5, maybe even $20.
PAST TOP PICK
(A Top Pick Jan 20/22, Down 39%)

Lead in their business. Just completed a successful turnaround and enjoying strong sales and a record backlog. Cheap, trading at under a third of book value. Expects a strong next quarter, and that's when the company should sell itself. He's pushing for a sale.

Unspecified

The litigation costs over asbestos content have been increasing and eating into profits. It is a jewel of a company and should be worth more than the present offer. There is the possibility of a higher offer.

HOLD

At this late stage, there won't be another offer, so you'll have to be happy with $13. Should have received a much higher price. Asbestos litigation costs did them in.

TOP PICK

It makes high quality valves for the nuclear industry. It had a take-over offer of $13 a share and he sold at around $12.50. However there were worries that the French Government might block the sale so the stock price dropped. The nuclear valves division is based in France. However he feels that the deal will go through in the next few months at $13.00 so has been buying it back as a short-term investment with up to 30% upside.
Buy 1  Hold 0  Sell 0 

(Analysts’ price target is $5.37)
HOLD

Chart looks the way it does because acquisition of its very lucrative nuclear valve business by an American buyer was blocked by the French government. Illiquid stock. The family still wants to sell. Deep value, good return if patient.

PAST TOP PICK
(A Top Pick Sep 25/23, Down 37%)

They remain the leader in nuclear valves. Shockingly, the French government blocked an American company from buying this small Montreal company. So, the family decided to sell the company and he expects it will be at a higher price. Their backlog and margins are growing. He still owns it. Trades below tangible book value.