Good morning Gang,

I am a customer of Valspar on the industrial side and I see significant positive developments in Valpar.

For starters, it is no longer the "me-too" company that tries to immitate its competetion. With the Lilly's acquisition last year, Valspar has established a dominant role in the Electro Deposition market space for non-automotive business. While the other players are busy fighting each other for the prestigious Automotive market, Valspar is quietly establishing itself as a trusted name in the industrial side. This strategy seems to be paying off nicely for Valspar; traditionally industrial market has yielded higher margins than the automotive side. Additionally, I see Valspar snatching more and more of Tier II and III from the tight grip of Dupont, PPG etc.

With the same intrepid, the little giant is scaling the highly fragmented powder paint industry. It is slowly expanding its customer base, and also treading the marketplace for potential little fishes. This industry is highly fragmented. Without a doubt, Valspar's next 'shopping' is in this market and I see Valspar taking a leadership role in the next 3-5 years.

Also, with its strong penetration in the retail section (Lowes, Walmart, etc.) it has definitely established the Lead-Dog role here. To play the part, it is rolling out new products that coy the recognized players like SW and PPG etc.