Replies to post #9641 on Veltex Corporation (VLXC)

[george8]

I think I did not make my argument clear enough. Value investing certainly is a viable methodology. The gentlemen you mention are among the better known in doing this.

However, these gentlemen are only searching fully reporting companies. Otherwise, how can one be confident enough on what is on the plate?

For argument sake, if VLXC is earning $0.75/share now with earning growth 30% annually, I'd buy VLXC at $7.5/share to fit PEG of 0.5, and not $1.1/share.

Of course, if you believe PEG of 0.0488 [($1.1/$0.75)/30] is 10 times better value than PEG of 0.5, and believe that it truly is the case for VLXC, then my hat is off for you.

It may be difficult for many to understand. But I think VLXC is a buy at $5-$7, but not at $1.1 or $0.5, from investment worthiness point of view.