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Re: Ruffieruff post# 39269

Friday, 08/19/2016 4:58:41 PM

Friday, August 19, 2016 4:58:41 PM

Post# of 53673
I sort of doubt it. There is too much going on and the valuation is too compelling for it to sit here for a long time.

It is very difficult to find comparable stocks to buy. By comparable I mean....growing revenue, growing earnings, no debt, growing cash, PE sub 10, PS sub 2, EV/EBITDA sub 5.

About the only other one is NAII. It is actually experiencing even faster earnings growth but its multi-year trailing record of performance is not nearly as consistent as VTSI. There are also stocks out there trading for far less than actual cash on the balance sheet (like STRI),however it is usually because the core business is ugly and in decline (like STRI).

On days like today when VTSI volume is essentially zero, the closing (or opening or during the day) share price is meaningless. At today's close, the Enterprise Value (Market Cap less net cash) is a hair under $30mil. Would it be possible to buy the entire company for $30mil? Of course not. If you did own 100% of the company, what would it be worth as a passive investment based ONLY on its FY16 net income? A lot more than $30million and that ignores a ton of other factors that add to the value.
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