Investment Q&A

Q: Hi 5i Team!

I would be interrested in your view on Vitreous Glass Inc. The Ticker is VCI.
It came across my radar this afternoon, looks to me to be very underestimated.
Trading at $4.29. Average Price Target on Yahoo is $30.50. with a 12% dividend.

I'd love to get your thoughts. Looks to be very undervalued.

Thanks!

Q: I own a pico cap stock (vitreous glass). Underwater about 60%. Small position. Think it’s alright to hold on?

Q: I am looking over VCI for yield. I see the last payment was a paltry .03! Compare this to a .13 payout earlier it seems a rather large fluctuation.
Is this strictly a quarter to quarter variation in the business or did they overpay early and cut back subsequently? I was hoping to see more stability in payout considering the lack of growth in the name. Could you give some colour on all this?

TIA

Q: Regarding recent question about VCI. In the question there is reference to 10% dividend. When I check through TDWaterhouse, it lists dividend at 5.33%. Can you clarify what dividend is? At 10%, it's attractive.

Q: Hi Guys,

My question is about VCI, or Vitreous Glass. The company has the exclusive right to buy all glass deposited at Alberta bottle depots, and then crushes it and sells the product to fiberglass manufacturers. My understanding is that the glass 'cullet' they produce is a significantly cheaper input to the fiberglass manufacturers than raw glass would be, so the three Alberta fiberglass manufacturers buy all cullet that they generate. The only restriction for this business is supply, not demand.

I know there have been questions in the past where your main concern is liquidity, but I keep getting drawn back to the name given it's high 10%+ dividend (all earnings are paid out as dividends), debt-free balance sheet, and earnings consistency (I tend to drink wine and return the bottles in good times and bad).

An argument for substantial price increases could be made given that their product is the cheapest option for fiberglass manufacturers, which would help grow the top line quite quickly. Why is this not a target for a leveraged buyout? It's easy to see how this could generate 20%+ with a bit of leverage.

Just a bit of rambling over what I feel is an undiscovered gem for income investors!

Q: I am always on the lookout for small, profitable, ignored stocks. What do you think of Vitreous Glass (VCI)? They look profitable, pay out most of their earnings in dividends, and I can understand their simple glass recycling business. What are your pros and cons. Thanks.

Q: Hello Good Friday,

Im looking to buy & I would love to get your guys opinion on Vitreous Glass as a company for a long term growth investor? What is you most recent opinion of this company. On a valuation basis would it be cheap or expensive? Thank you very much. I look forward to your expert opinion.

Q: Would you please provide an update on VCI as your last comment was on Feb 22, 2015. It appears on the "Most Active" list on the TSV regularly and according to the NB website it pays a dividend of 18.93%. It has enjoyed a recent bump upwards lately.