Vulcan International: Playing Hide-and-Seek with Value

In one of the posts on Oddball Stocks blog, Nate Tobik definitely scratched the surface of financial statements of what seems to be one of the highly secretive companies out there – the Vulcan International, a Delaware incorporated company.

We have to admit that it’s quite interesting how Nate laid his hands on company’s last year financial statements, knowing that Vulcan is requesting a signed NDA in order to release them to shareholders. He got it in an unmarked envelope (without signing NDA) and the sender was, believe it or not, the sister of company’s Chairman.

Vulcan International: Playing Hide-and-Seek with Value
Pixabay/Public domain

So, whatever the story is behind this, the conclusion is that Vulcan’s management is either trying to hide its exact value or it’s stealing outright from shareholders. Nevertheless, one thing is for sure – besides its Tennessee operations where they are losing substantial amounts of money, the rest of company’s assets are definitely valuable. Namely, a timberland in Michigan, interest in a building in Cincinnati and some other assets valued at $5 million (at the end of 2016) and some other marketable securities (consisting of PNC and USB stock primarily) valued at $139 million.

Compared to 2015 when the company earned $1.235m, or $1.35 per share, in the following year earnings were 30% higher. As for comprehensive income retrieved from company’s marketable securities, the numbers are significantly higher – $18 million in 2016.

By taking just a glance at the updated (2018) version of company’s holdings (from the early 2000s), one thing is clear – just the security holdings are “significantly more valuable” than the company itself. Moreover, since the majority of Vulcan’s value is a public stock investment, one cannot help but wonder – why it’s not considered an investment company and regulated accordingly?

Nevertheless, the question remains – will Vulcan ever open up and get things straight regarding their financials and their “attitude” towards shareholders?


Related posts