The must have, blue sky potential technology stock
Post# of 17844
If I had a little gambling money left in my limited risk investment account, I would seriously look at this microcap fiber optics company. The past two years has seen a monumental transformation to this tiny company who has developed a better mousetrap. Their patented or proprietary products have been tested by major industry corporations and have come out on top when compared with similar products made by industry giants. Their battle now, is to receive corporate confidence, that this tiny company, Valdor Technology International, can meet their stringent demands, as well as producing large volume orders with the same high standards already exhibited and meeting delivery deadlines. Once this hurdle is met, the increase in revenue will be immense. Their profit margin on revenue is roughly 60%. Valdor’s revenue increased in the first 3 quarters of 2014 by 750% over the same time period as 2013, and indications were that the 4th quarter target would be met or exceeded. This puts the company at very close to financial break even. I could see from the direction Valdor has taken, and the benchmarks they are striving to achieve, that revenue could conservatively reach 5 to 8 cents per share, or earnings of 3 to 5 cents by year end. What multiple to earnings the market will give this tiny (for now) emerging technology company is hard to say. At only 10 times, that would make this 0.09 stock worth 0.30 to 0.50. A nice return, with much upside from growth of sales, acquisitions and new joint ventures still to come.
And why do I think this is possible. 1) Management. This small group of newly assembled people are highly skilled, hardworking and dedicated to making Valdor a huge success. This confidence is confirmed in the fact management does not earn a salary. They earn shares, as well as purchase shares in the open market. See Insert-tag-herewww.canadianinsider.com/node/7?menu_tickersearch=vti
Ron Boyce, V.P. Sales and Marketing, has worked in the Canadian telecom sector for many years, and has numerous contacts with these major telcos. Raj Kapany is a consultant and Valdor’s M&A expert. Las Yabut, President, has extensive connections with people in the fiber optics field and to manufacturing facilities throughout Asia, the Philippines and North America. Elston Johnston, COB, is the driving force behind Valdor. John Hammock, V.P. Sales, runs the Niagara division. For a full list of management and their profiles, see
Insert-tag-herewww.valdor.com/fiber-optic-connectors.php?type=2&page=corporate&chc=3#.VL_bH0fF8_Y
2) A tight share structure. Valdor shares traded relatively thinly, which is very positive for buyers looking for longer term market appreciation. The shares have been estimated at being better than 80% in tight hands. Owned by management, family friends and astute high net worth individuals, all looking for long term gains. Due to this fact, it is in management’s best interest to grow Valdor in every respect deserving a global company.
3) Product. The Valdor product lines are second to none. I mentioned earlier they are patent protected or proprietary. They have been put through extremely rigid testing. They are field installable harsh weather military grade products. They do not use electricity, heat, glues or epoxies. They are being used in the early stages of marketing by major corporations such as; NASA, Remotec, a division of Northrop Grumman, the U.S. Army and Marines, Schlumberger, Kaiser Optical, and Lockheed Martin, to name a few. Their world class 1 to 32 splitter is currently undergoing stringent testing by a number of major Canadian telecoms, all who have been suffering from cold/harsh weather failure issues. The Canadian splitter market alone, is worth roughly $25 mil. The entire fiber market to the Canadian telecoms is close to $300 mil., all of which Valdor has the ability to supply.
And 4) Did I fail to mention Valdor has 3 divisions. They acquired Niagara Streaming Media a year ago. Niagara is a live streaming video business that holds four patents and markets the Niagara and GoStream product lines. Niagara is the global leader in live streaming media hardware and software. Valdor is in the midst of final legal matters to complete their first JV in Mexico, a $35 billion market which is growing at 10% yearly.
Finally, I believe the technology sector is a good market sector to be in right now. For more information, see www.valdortech.com or call management.
Have a great week, Sparky.