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Stocks V / Vallen Corporation


Subject:  Vallen a value? Date:  3/2/1998  1:38 PM
Author:  FledgingFool Number:  2 of 2

This is my first attempt at Fool investing, so would appreciate any thoughts you may have on Vallen Safety.

I became aware of Vallen (VALN) while assisting a client in their evaluation of companies who could supply not only safety supplies, but more integrated services as well, on a national level. Vallen impressed me with their delivery systems, client support, and that they are identifying and buying or otherwise allying themselves with companies who can help them capture market share. Their plan to double revenues (profits?) by Y2K seem agressive but doable.

It's a company I like in a business I understand. That said, I don't know if doubling their revenues will mean a signifcant increase in profit margin, or will they be "buying" those increases by purchasing other companies. I understand they've bought a mill-tool company as well as another safety supply firm in the last year or so.

And, I don't understand how much importance to place on the fact that their earnings are on the ">15% but shrinking" list.

Also, this company doesn't have mass market appeal, so don't know if I should be looking at it at all, per the FOOL approach.

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