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Bullboard - Stock Discussion Forum Vicwest Inc VICUF

GREY:VICUF - Post Discussion

Vicwest Inc > Making hay while the snow falls
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Post by noffcoff on Apr 03, 2014 2:02pm

Making hay while the snow falls

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
____________________________________
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.
Comment by carldaniloyah on Apr 03, 2014 2:07pm
This post has been removed in accordance with Community Policy
Comment by noffcoff on Aug 26, 2014 10:30am
+19.5%, plus one 15c dividend, over 144 days. Still holding because it's still at a discount to the selected assets.