Stephen Takacsy's Top Picks: February 25, 2022It seems to me his estimate is lower than before but too lazy to check back.
VELAN (VLN TSX) Velan is a world leader in nuclear and complex industrial valves. The company released excellent results in January with significantly improved profit margins following a very successful turnaround plan. They also have a strong backlog of orders which is expected to grow as their big end markets like energy and nuclear power strengthen. The stock is also one of the cheapest on the TSX, trading at less than 50 per cent of net book value of $17, and just over 3X EBITDA. We expect the company to aggressively start buying back shares which would be highly accretive. We also expect the company to eventually be sold to a strategic buyer and that based on prior M&A, the shares are worth over $20 per share.