Valhi: Left Behind In The Underlying Anti-Dumping Rally

Valkyrie Trading SocietyInvesting Group LeaderFollow5ShareSavePlay(7min)CommentsSummaryValhi, Inc. trades at a decent 60% NAV discount, making it attractive for value investors seeking holding company bargains.VHI's Kronos subsidiary benefits from EU antidumping measures (probably not as much as TROX), but rising energy costs and input tariffs limit the direction.Despite Kronos's (also listed) strong YTD performance and presence within VHI, VHI itself lags in the rally, reflecting tactical mispricing opportunities.While anti-dumping measures offer upside, macro headwinds—especially energy inflation—temper the immediate outlook for VHI's industrial assets.Looking for a portfolio of ideas like this one? Members of The Value Lab get exclusive access to our subscriber-only portfolios. Learn More » Meowcyber/iStock via Getty Images Valhi, Inc. (VHI) is a holding company with businesses principally dominated by three listed companies: NL Industries (NL) with an ~83% stake, CompX (CIX) with an 87% stake, andThis article was written byValkyrie Trading Society5.53K FollowersFollowThe Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.They lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.