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Opinions Stephen Takacsy, B. Eng, MBA
Velan IncVLN.TOPAST TOP PICKFeb 24, 2020
(A Top Pick Jan 28/19, Down 37%) A global leader in the manufacturer of valves including nuclear valves. They are in the middle of a turn-around plan which he initiated. They started buying back their shares, which is usually accretive. We are seeing an improvement in the gross margins. We will see the full impact in twelve months. He thinks the company will be sold to a strategic buyer in the next two years.
$7.15
Stock price when the opinion was issued
$16.91
As of Jun 19, 2026. Market Open.
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TOP PICK
It makes high quality valves for the nuclear industry. It had a take-over offer of $13 a share and he sold at around $12.50. However there were worries that the French Government might block the sale so the stock price dropped. The nuclear valves division is based in France. However he feels that the deal will go through in the next few months at $13.00 so has been buying it back as a short-term investment with up to 30% upside.
Buy 1 Hold 0 Sell 0
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PAST TOP PICK
(A Top Pick Jan 20/22, Down 39%)
Lead in their business. Just completed a successful turnaround and enjoying strong sales and a record backlog. Cheap, trading at under a third of book value. Expects a strong next quarter, and that's when the company should sell itself. He's pushing for a sale.
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PAST TOP PICK
(A Top Pick Jan 20/22, Down 42%) It is a world leader in the design and manufacture of complex industrial valves and is the gold standard for nuclear valves. It has completed a successful turnaround plan and has a record backlog of of high margin business. Trading at less than 1/3 of book value, it is one of the cheapest value stocks. No analysts cover it. He and several other institutional investors are pushing for the sale or privatization of the company to unlock shareholder value. The stock is worth much more than $5, maybe even $20.
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Unspecified
It is a valve maker where the end markets have great importance, especially energy and nuclear. Has a strong backlog. He is one of the activists pushing hard for the company to sell to a strategic partner for better profitability. Has a new CEO who is doing very well. Trading well below liquidation value.
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BUY
Business has had strong financial results the past few quarters.
Significantly increased gross margins.
Turnaround plan is working as hoped.
Very under valued company.
Happy with improvements in corporate governance.
Industrial valve backlog in orders.
Expecting share buybacks to start soon (next year).
Believes company is worth over $20 a share.
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BUY
A leader in nuclear valves. Four years ago he was activist shareholder, but the company has made great strides since then. Their turnaround plan is in full swing. Gross margins have increased a lot and they have a record backlog. Are benefitting from energy infrastructure spending and the need for more energy. Company remains way below book value, so it's cheap. It could be sold one day. A long-term hold for a deep value investor.
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TOP PICK
Fantastic results a few days ago. Hugely improved profit margins. Healthy backlog that should grow, since its big markets are energy and nuclear, which are hot right now. Trades at less than 50% of book value. His firm is pushing for a strategic sale, looking for $20-30 per share. No dividend.
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BUY
They were a strong activist shareholder a few years ago and now hold a seat on the board. The transformation is nearly complete and recent earnings proved it is working, with a record order backlog and expanding margins. They expect solid earnings when reported in January. At some point it could be an acquisition target, where he thinks it would fetch 3x its current value. You have to be patient. Very little downside.
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HOLD
World leaders in nuclear valves. Has become more shareholder friendly, focusing on higher margins and more profitable areas. Record backlogs, so this year should be very strong. Nominated first non-family chairman ever, a positive. Significantly below tangible book value. His firm is pushing to unlock shareholder value. Support at these levels and should go higher.
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HOLD
They announced a good last quarter with a record backlog of orders. This is badly undervalued. At some point, there'll be value creation. This business has turned around towards higher-margin product. Some end markets are coming back as nuclear plants need Velan's valves. One day, the company will be privatized, but you need to be patient with this.
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BUY
He likes the valuation as it is the cheapest stock on planet earth. He has been active as a shareholder on the turn around plan and is quite happy about how the plan is going now. The results two weeks ago were phenomenal. They need to buy back shares or put the company back up for sale now.
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