Veltex Corporation (VLXC)

[george8]

Sam:

In one way you are right. What I meant was anyone would buy the whole co at $8mm if it really makes $11mm a year any day of the year.

There is a limit to value investing. P/E of less than 1 with 20% plus growth rate is just too good to be true.

Matin would have convinced himself to buy the whole co at $8mm even if he had to borrow. After all, VLXC is making $11mm a year. Why would he bother to convince the market that it is wrong?

Then, one day he can sell the whole co at, say, P/E of 10 at $110mm. And it is all his $110mm. And, before that day, he will be making $11mm and more every year and no need to be bothered by the investing public. What a life that will be.

George