Author Topic: VULC - Vulcan International  (Read 16214 times)

Foreign Tuffett

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Re: VULC - Vulcan International
« Reply #30 on: June 24, 2019, 09:23:39 AM »
I donít understand why you guys are still holding the stock. If you estimate the liquidation to return $140 per share, itís only 12% above todayís price and it could be another 2 more years until any distribution is paid.

Is $140 per share your estimate, or are you just referencing that # because it appeared earlier in this thread? My current estimate is meaningfully higher.

I don't think anyone here knows the liquidation timeline, but one thing I would note is that (assuming its stock positions haven't already been sold off) VULC generates a non-trivial amount of cash flow solely from the dividends it receives.


fishwithwings

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Re: VULC - Vulcan International
« Reply #31 on: June 24, 2019, 09:25:21 AM »
I donít understand why you guys are still holding the stock. If you estimate the liquidation to return $140 per share, itís only 12% above todayís price and it could be another 2 more years until any distribution is paid.

Is $140 per share your estimate, or are you just referencing that # because it appeared earlier in this thread? My current estimate is meaningfully higher.

I don't think anyone here knows the liquidation timeline, but one thing I would note is that (assuming its stock positions haven't already been sold off) VULC generates a non-trivial amount of cash flow solely from the dividends it receives.

I'm basing it on what others have mentioned.

Hielko

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Re: VULC - Vulcan International
« Reply #32 on: June 24, 2019, 09:31:33 AM »
I guess you never now with this management team, but as long as they continue to own their stock portfolio their assets should more or less generate a market return. So you get the closing of the discount + (or -) the underlying return in the mean time. Secondly, you should think that they should be able to liquidate their stock portfolio faster and distribute the proceeds. But then again... the announced the liquidation last october and nothing has happened so far, so who knows....

Foreign Tuffett

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Re: VULC - Vulcan International
« Reply #33 on: August 28, 2019, 05:47:19 PM »
Per Oddball Stocks, Vulcan is putting its timberland up for sale.

http://www.oddballstocks.com/2019/08/vulcan-international-corp-timberlands.html

SI

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Re: VULC - Vulcan International
« Reply #34 on: August 28, 2019, 09:37:08 PM »
Why would the timberland not be at a decent discount to kewl of $550/acre given all the non-timber assets kewl has and its mgmt. The previous kewl comp being used was the sky high purchase price of the old mgmt that was the final bullet in convincing the activist to launch the thread the needle proxy battle that he actually won. Has the broker given any indication if the reserve price is greater than $400?

Foreign Tuffett

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Re: VULC - Vulcan International
« Reply #35 on: September 19, 2019, 06:40:25 AM »

Hielko

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Re: VULC - Vulcan International
« Reply #36 on: September 19, 2019, 01:04:01 PM »
The company finally put out another press release.

https://www.otcmarkets.com/stock/VULC/news/CORRECTION-FOR-IMMEDIATE-RELEASE?id=240805
I guess we should be happy that they were generous enough to give shareholders a hint of when a first distribution might be paid...

writser

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Re: VULC - Vulcan International
« Reply #37 on: November 06, 2019, 12:20:04 PM »
Bids for the timberland were due October, 11. Status at the real estate broker has been changed to 'Contract Pending'. Both PNC and USB, the stocks that supposedly make up the majority of the remaining assets, are up ~30% YTD. The Vulcan Clarksville plant is being demolished and the land could be valuable. If everything goes according to plan VULC could easily distribute as much as $170 per share in a few months.

Of course there is a lot of uncertainty. Are PNC and USB actually part of their stock portfolio? Has the stock portfolio already been liquidated in 2018? What will be the tax implications of the liquidation? What was the timberland sold for? Will there be delays? What do the current financials look like? Nobody knows. Crazy situation with a paranoid CEO.

Still one of my largest positions though.
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@thewritser

Foreign Tuffett

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Re: VULC - Vulcan International
« Reply #38 on: November 07, 2019, 11:30:29 AM »
~$170 is my best guess for ultimate liquidation value here.

This is speculative, but I doubt any of the equity positions have been sold. Gettler had to have known last year that selling off the timber and real estate was going to take an extended period of time. Why be in a hurry to realize big gains and have to pay a tax bill? Also, why forgo an extra year plus of dividends? Finally, this is a company with a proven history of sitting on its hands for extended periods of time.

My interpretation of the most recent press release is that Gettler, at the very least, wants to have a good idea of what the Clarksville property will sell for before announcing any distributions. Completing "enviromental due diligence" is probably an important part of figuring out what the property is worth. The building itself was only demolished last month.

https://www.theleafchronicle.com/story/news/local/clarksville/2019/10/14/demolition-clarksvilles-vulcan-plant-begins-college-street/3978152002/

Hielko

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Re: VULC - Vulcan International
« Reply #39 on: November 07, 2019, 12:43:19 PM »
I think you are right, but who knows what is exactly going on there...