VHI - Vahli Inc

[Scunny Bunny]

same letter as HAL Trust but placed as new topic. 

http://east72.com.au/wp-content/uploads/2021/04/QUARTERLY-REPORT-Public-March-2021.pdf

[louisdog]

The letter continually spells the name of the company wrong.  It is Valhi not Vahli.  Just in case anyone is trying to look into the company more

[Brett]

This was an obvious investment in August-October. They cancelled the preferred in August, gifting the common $600 million. And the stock just sat there. No one reads the filings. Stock was around $11. Someone wrote it up on Seeking Alpha later that month and it went to $13-14. The stock was down by 50% or so while the holdings were up on the year at this point. 

Why did they cancel the preferred? My guess is estate tax reasons. They did stuff like this before: https://www.bloomberg.com/opinion/articles/2014-06-27/texas-billionaire-s-heirs-save-some-money-on-taxes

I think the name is tougher now. Some closed-end funds trade at ~30% discounts. Bluegreen Vacation Holdings was around a 20-25% discount last I checked. 20-30% discount seems right to me. The discount at $10-14 was massive. Now you're relying on the real estate. It was obvious to me this was going to trade up from the $13-14 level. It was going to start screening very cheaply and people would do work. 

[Scunny Bunny]

Stock up 40% in a month - please note general illiquidity. A lot of movement in CIX + titanium dioxide market improving.