Vicwest Inc VICUF

Making hay while the snow falls

[noffcoff]

I think mother nature has generated a pretty good buying opportunity here. I've been following this stock for a while, wishing I could pick it up at a healthy discount to it asset value, and that time is here. 

Accounts receivable                        $54,627,000
Inventories                                        $59,944,000
Property, plant and equipment     $61,788,000
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Total                                                   $176,359,000
Current Market Cap                         $165,004,011
Discount to selected Assets                             7%

This is just a back of the envelope valuation that strips the assets down to the bones and then some. Heck I didn't even include the cash (another $2.7M) and the intangibles. I happen to think the company is worth more than just thier assets. In 2012 their Return on equity was a healthy 36%, and they paid 17% of their gross profits to shareholders in the form of dividends in 2013. Bad weather is temporary. When things normalize this is a solid business. It's been around for a helluva long time and I don't see that changing. Happy to pick up shares here thanks to events outside the company's control.