With the stock rallying hard today, my suspicion that a hedge fund was selling out, most likely due to redemptions, is almost validated.
Looking at their only publicly traded competitor, LNN, one could make the argument that VMI is 25 points cheap.
Aside from their burgeoning irrigation equipment business, VMI has a galvanizing division, which attracts short sellers– who are betting against metal stocks.
My best guess, VMI has bottomed and should continue to recoup the 20 points it lost, since they reported blow out numbers a few weeks ago.
Long term, “The Fly” thinks VMI will moonshot north of $150, providing the market keeps its marbles.If you enjoy the content at iBankCoin, please follow us on Twitter