I guess I was bored.  I was just noodling around the web and I came across a company that caught my attention.   I looked it up on Yahoo! and on pinksheets.com.  I wasn’t expecting much, but I did notice that it was fully reporting.  So, I looked at the fins.  As a recovering CPA, I always look at company fundamentals…even though most microcaps don’t have any!

What I found surprised me! I found a stock that has $50MM in assets, revenues and net income last quarter of $11MM and $2.1MM respectively and is trading for only $1.50.  True, the share trading volume so far today is only 500 shares, but this is one to put on the radar.

The company’s name takes a little getting used to.  It is deceiving.  It is a little like a hulking defensive end playing in the NFL who is named “Phyllis”.  The name of the company?    Promotora Valle Hermoso, Inc. (PVHI). You might expect from the name that they are a food manufacturer making refried beans or Paella, or something Latin.  No, they are a construction company that operates within the Russian Federation.  They are a large general contractor specializing in infrastructure-type project (what I call “Big Dirt).  If this stock takes off, maybe I can change its name to Pay Dirt”

They do a wide range of projects including the construction and maintenance of roads; highways and bridges; designing/building apartments and office buildings, parks, warehouses, shopping centers and retail facilities, and hotels; and commercial housing projects and light industrial projects for governments, developers, businesses, and end users.   They are also heavily involved in the oil and gas infrastructure business (plants, pipelines, etc…)

Why do I want you to keep this one on your radar? It is all about potential.  PVHI has a real business with real assets and, according to company sources, a $1Billion backlog.  Russia, like the U.S., is involved in an infrastructure binge and the government is backing companies like PVHI with gov’t funds.  Another reason is that the shareholders want to get paid, too.  They have engaged an investor relations firm to begin the process of getting PVHI known.  The IR  firm is operating from the Investor Relations handbook (if there is such a thing).  They plan an aggressive campaign of press releases, road shows, and conferences to make this stock known to market makers and the general public.

You can take a look at PVHI yourself by clicking on their website link.  You will laugh when you read the site, though.  It is clear that someone who is not an English speaker designed and wrote the copy on their site.  The verbiage is unintentionally funny.   My brother-in-law does websites.  Maybe I’ll send him the referral.

Oh, and about the name. It appears that the construction company did a reverse merger with a Spanish shell about a year ago.  The owners of that shell kept 32% of the company as their compensation (pretty good deal for those shareholders, if you ask me.)  They may change the name down the road, but right now they are stuck with it.

It has a chart but, with only minimum volume, it is not going to do traders much good.

The chart indicates that the MACD has turned bullish but, with it below the zero line, it doesn’t make me that excited.  The stochastics tell me that the stock is oversold but without any volume: who cares? You can see from the chart the stock has extreme volatility.  However, the daily volume in the last three months has not exceeded 2,500 shares.  This also makes the stock ripe for manipulation.  I would like to see some volume hit the stock and start trending up.

I will be waiting to see just how successful the company is in being noticed and I am seriously thinking about investing in this. To my mind, it is the kind of company that can get hot and stay hot.   I am going to take a wait-and-see attitude with PVHI before I commit any funds.  I’ll let you know if I think they are in play.