Valhi, Inc. (NYSE:VHI)

DrRonPaul4Prez (22.66) Submitted: 2/22/2012 1:09:28 AM : Start Price: $19.33 VHI Score: +13.60

Over-priced. Not adding value as well as other companies.

MegaShort (99.96) Submitted: 10/30/2011 5:51:48 PM : Start Price: $11.99 VHI Score: -19.16

VHI owns 83% of NL (directly), 74.9% of KRO (directly and indirectly), 72.2% of CIX (indirectly), and 100% of WCS (directly). It also has small investments in sugar and titanium companies, approximately offset by corporate level debt.

The current market values are as follows.
83% of NL: $608M
Less 24.9% of KRO: -$665M
Less 72.2% of CIX: -$134M
83% of NL, excluding KRO and CIX stakes: -$191M

74.9% of KRO: $2B
72.2% of CIX: $134M
Total: $1.94B

Current VHI market cap: $6.73B

WCS had $7M in revenue in 2010, 144 employees, and 1 large landfill site. Although WCS is expanding operations at their landfill (including nuclear waste), I believe it is worth less than $500M. VHI appears significantly overpriced relative to its public subsidiaries, particularly NL. However NL (formerly National Lead) may not be an appropriate long position because of legal issues.

They are currently facing lead, asbestos, and environmental lawsuits brought by the EPA and others. Also, VHI subsidiary pension funds are underfunded.

Matt Taibbi's recent article in Rolling Stone accuses Valhi majority owner Harold Simmons and Texas governor Rick Perry of bribery and corruption. A key quote: "In a supremely ironic demonstration of how the modern system of payola capitalism works, Simmons is now being paid millions by taxpayers, via the federal Energy Department, to clean up his own mess, moving radioactive waste from his dump in Ohio to the one in Texas." Read more here: http://www.rollingstone.com/politics/news/rick-perry-the-best-little-whore-in-texas-20111026#ixzz1cIq7qWls

I think VHI is highly overpriced, probably because it is a momentum stock and has a small publicly traded float.

I may also reconsider my small position in Keystone Industries (a steel wire company trading at a deep value, also owned by Simmons through his holding company Contran) because Simmons really seems like a jerk.

bobbobwhite41 (28.99) Submitted: 7/26/2011 11:33:45 AM : Start Price: $18.92 VHI Score: +13.78

Price is 96 p/e and 36 times book... over 10 times VHI 5 year avg. That alone is more than enough reason, but the main reason is overt price manipulation by the owner, Harold Simmons, that is unchecked by the SEC or any other gov't agency charged to oversee. Hmmmmmm.

Jeffrey2012 (44.15) Submitted: 7/14/2011 9:54:05 PM : Start Price: $19.30 VHI Score: +16.63

This is an overvalued holding company that is having way too much of a rosy picture in terms of future prospects. While I agree that TIE is doing well due to the recent BOEING supply agreement and it's ability to continue to raise prices somewhat in a somewhat constrained supply environment, it just cannot support the valuations going forward.

I seriously believe that the performance crowd has started to chase this to the moon since they see Mr Simmons buying so many of the shares and it's consistently gone up. But the run up has been way over done and a serious risk of over heating. I fear that many people don't quite understand all of their holdings and just see that it's gone up so it must continue going up. This can only turn out bad for a company who is trading at a p/e of 85+.

This is definitely an interesting company and if it could drop down to a more reasonable price point then it would become a more rewarding investment going forward.

modestus1 (< 20) Submitted: 12/27/2010 8:53:54 PM : Start Price: $7.06 VHI Score: +123.31

Second largest producer of titanium dioxide and is a potential supplier of nuclear cleanup chemicals.

Maribaza (26.67) Submitted: 7/2/2010 2:03:05 PM : Start Price: $4.29 VHI Score: -252.09

(35,31,0)
85,44,10

dermagenex (< 20) Submitted: 6/3/2008 7:02:52 PM : Start Price: $9.14 VHI Score: +76.98

The bears have no clue as to why VHI has been up.

With high oil prices, nuclear energy is the future. The only roadblock to nuclear has been “what to do with the waste?”

It looks like a subsidiary of VHI is on the verge of taking care of it, and currently it has no competition (huge competitive advantage and pricing power).

“A subsidiary of Dallas-based conglomerate Valhi Inc., Waste Control Specialists LLC was in Phoenix to make the case that it was on the verge of doing what no other company has been able to do—license and build a massive radioactive waste landfill.”

http://texasobserver.org/article.php?aid=2729

Short VHI at your own peril clueless bears.

suponders (< 20) Submitted: 6/3/2008 5:28:28 PM : Start Price: $9.14 VHI Score: +76.98

I have no idea, it's a hunch.