Stephen Tacaksy on BNN - Top PickVELAN (VLN TSX) Velan is a world leader in designing and manufacturing nuclear and complex industrial valves. The company released great results this week with hugely-improved profit margins following a very successful 3-year 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 planet, trading at less than 50 per cent of net book value of $17, and just over 3XEBITDA. We continue to push the company to buy back shares as this would be highly accretive and to eventually maximize shareholder value by selling the company. The stock is trading under $9, and we believe Velan is worth between $20 and $30 per share if sold to a strategic buyer.