Valmont Industries, Inc. (VMI)

Valmont has been one of the economic indicators in Eastern Nebraska for years. In the '80's and '90's, the local television stations would point to Valmont as a sign that the economy wasn't as bad as people made it out to be, and a sign of the recovery.

Valmont has a number of things going for it. It has strong international presence, is positioned to take advantage of the stimulus package when roadway work really gets going, and is also well positioned in the energy field with the towers it builds for wind generatiors. Most importantly Valmont has an excellent management team, well versed in international trade, and a strong marketing force. I hold Valmont and it is winner in my portfolio and am a former officer of Valmont so I think I know the inside story of this great company.

Fortune 40

Infrastructure development.

This is a company that has achieved #1
positions in mechanized irrigation and poles.
It has opened 3 factories in China and has
been profitable in China.The company bene
fits from need for water conservation,
electricity growth and need for more transm
ission structures.Likely will be acquired by a larger company in the future because it is such a great company and because the founder still owns a third of shares and likely won't live forever.

Overwhelming earnings in a sector that will rebound more quickly than the market

whats not to like...

Utility / Ag play.

2/6/09 Pitch: Downthumb. Earnings 2/17/09. I just don't believe that the bad news is out yet on this company. Had a good October quarter report. But no warnings of any slowing and no indication of belt tightening. Why do these CEO's think that they don't have to report anything at intervals less than a quarter in this environment? So it's downthumb.
Past trades:
10/10/08 Pitch: Upthumb. Earnings 10/16/08, 9:00 AM Steel industry is overly sold off. Closed 12/10/08 @ $60.42 for +6.62 points.

Company continues to expand around the world. China's demand should grow fast and this company has 3 modern plants there.

Aquisitions continue to be made and will aid growth and profits in the years to come. Good Management exists both domestically and in their internation division. Expect the trend to go up nicely over 5 year time frame.

Taken a beating as hedgers had to sell to raise cash. But food isn't all that plentiful, and demand won't be dropping anytime soon.

Will benefit from Investment in infrastructure in the coming depression also need to increase food production world wide.

Dont fight the trend. The price needs to correct a bit closer to it's next support level at around 72. This will put it's PE at a much more rational number and will help stablize a bottom before moving again to challenge it's highs. stock will underperform for the next several months then tiime to re-evaluate.

An agriculture based stock is going to do well in the current market. With the rising cost of food and ethanol production, the higher pricing level of these products also represents a higher investment. Irrigation equipment is one way to protect that investment. On the other side of the business is of course the utility tower production which is imperative in the wind generation boom.

chart

Press Release Source: Valmont Industries, Inc.

Valmont Announces First Quarter Results
Wednesday April 16, 5:30 pm ET
Highlights:
- Record first quarter sales, operating income and net earnings.
- First quarter sales increased 24%.
- First quarter operating income rose 51% and was 12% of sales.
- First quarter net earnings increased 59%.
- Global Irrigation Segment sales increased 41% and operating income was 83% higher.
- Engineered Support Structures Segment sales increased 19% and operating income rose 16%.
- Utility Support Structures Segment sales increased 26% and operating income rose 54%.
- Coatings Segment sales rose 4% and operating income increased 26%.

http://biz.yahoo.com/prnews/080416/law075.html?.v=101

Looking good...BUY!

Irrigation is going to be of a premium this year as farmers try to squeeze every last kernal out of their acreage with record prices looming. These guys are trading at their highs but I don't think it's finished. Good growth and they're established.

Who doesn't need improved electrical power grids? The increasing earnings per share of this company shows that gaining the approval of those who need Valmont's products.

Great fundamentals will keep this baby moving. It is hanging touch, fighting back in a bearish market.

Value line . timely stocks in timely industry, Tech Rateing =1