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By Dan Haugen | Published Wed, Nov 26 2008 2:18 pm
Investopedia financial writer Glenn Curtis paints a bright forecast for Valspar in 2009. The Minneapolis-based paint company released its fourth-quarter financial results on Monday. The company earned 42 cents per share, up from the 38 cents per share it made during the same period last year. Sales for the three months totaled $923.2 million, an 8.3 percent jump from a year ago and more than analysts were expecting, Curtis writes.
Why's he high on the company for next year? Valspar made money this year and expects to be profitable again next year. Its inventory level is down, which is smart, he says, because management is making sure they won't be caught with a glut of product. Valspar's also got money in the bank -- $90 million cash, which means it shouldn't need to tap into the wild credit markets anytime soon to keep the paint flowing.
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