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TSE:VLN

Velan Inc (VLN.TO)

16.91
+0.67 (4.13%)
as of Jun 19, 2026, 7:59:59 pm Market Open.
4 watching
0
BUY
They lead in wireless antennae for cell phones, satellites and sell globally. The pandemic has impacted sales. They had to pause a new plant in Vietnam. The 5G roll-out is back on track. They had to guide down and that pressured the stock. Also have a lot of debt. Overall, though, they will be fine with upside to come. They will recover in coming quarters.
PAST TOP PICK
(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.
WATCH
He has not owned it based on the liquidity. The stock has not done much. If we see a re-acceleration in industrial components then this would be the place to watch.
PAST TOP PICK
(A Top Pick Jan 28/19, Down 37%) They are very much encouraged by the latest results. The company has started buying back shares. It is suffering from some tax loss selling. There is huge upside and very little downside. He just bought a lot more.
PAST TOP PICK
(A Top Pick Dec 03/18, Down 21%) It is down on a failing of them to buy back their stock and support it. He became activist with several other shareholders and they have now made some tough decisions about closing money losing plants and dropping unprofitable business lines. The latest results were a significant improvement in gross margins. They announced they re-instituted the share buyback program. It is a screaming buy.
BUY
They are probably the cheapest stock on the planet. Trades below liquidation levels. He does not understand why they are not buying back shares. They have been slow but are closing business areas that are losing money. Value is not being reflected in the market and management should do a better job of building shareholder value.
DON'T BUY
Maker of large valves. Earnings estimates have been chopped. Payout ratio exceeding 180% -- the dividend does not look sustainable. It is not free cash flow positive. A struggle to turn the company around. Yield 1.36%
BUY
Cutting dividend was symbolic. Stock buyback stopped, he's not sure why. There's a turnaround taking place. Bit of a mountain to climb, as it's a global market with big players. They have a valuable asset. Closing unprofitable plants. Hopefully we'll start to see the fruit. Solid balance sheet. World leaders in many segments. Hang on, especially at this price, and he'd be buying more.
SELL
They are struggling. In January, profit was down 79% even though sales were up 10%. Earnings estimates are expected to improve this year but still be a negative.
TOP PICK
High end valves. It is the cheapest stock on the entire TSX. It trades at 50% of their book value. The profitability is not at the level it should be. They have a new CEO now, who is focused on cutting costs. They made a huge announcement of closing their largest manufacturing facility in Montreal because it was losing money. The backlog is growing.
TOP PICK
A global leader in industrial valves. It is beaten up. It was suffering from tax loss selling. The backlog is growing again. It is trading at 50% of its net book value. He still thinks it will be sold to a much larger player at some point.
BUY

They are focusing on verticals where they can get higher margins. They are reducing costs. Margins are starting to improve. The backlog is growing. He thinks they are doing all the right things. He thinks they might sell the company. The company has a rock solid balance sheet.

PAST TOP PICK

(Top Pick Sep 22/16, Down 4%) The world leader in nuclear valves but they make all sorts of valves. They were hit by the slowdown in the oil industry. They are a classic value trade. There is a lot of undervalued real estate on the books. It is possible the company could get sold one day. He owns it for the long run as things slowly begin to turn around.

TOP PICK

A classic value play, trading below book value. World leaders in nuclear valves. The backlog is growing again. They buy back their stock regularly below book value. They may sell the company some day. Margins should grow significantly in the next few years.

PAST TOP PICK

(Top Pick Apr 27/15, Down 14.54%) A classic value play. Affected by a slowdown in the gas and oil industry. They are diversified. They are closing plants to reduce costs. There are few profitable companies trading at this much of a discount.

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