Valmont Industries, Inc. (NYSE:VMI)

Growing importance of Ag equipment.

Guess who makes all those wonderful lighting fixtures you see along highways? And the huge irrigation pipe thingsees for agriculture? Valmont Industries. They’re doing very well. Profits are up Dividend is up Guidance is up. So are the shares.

sup

It has good valuation.

Zacks value.

solid, well managed company in a lot of good businesses.

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.

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.

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.

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.

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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.