I had a long chat with Elston Johnston today and he updated me on the many sales opportunities the company is pursuing. Some of them are short term while others are longer term but progress is being made and we may have some news fairly soon about this.

Elston said that anyone who wishes to call him for a full update is welcomed to call him. Just PM me for his direct phone #. There was just too many companies that he mentioned besides Kaiser and Lockheed Martin (where they are working on potentially very large contracts-as per previous NRs) for me to remember. Newmont and Barrick were two I recognized from the mining industry. However, there was lots of others that I did not know.

This company has been around since 1985, survived the tech bust of the late 1990's and has developed a line of niche products that are now being recognize by the industry. They have done this with minimal share dilution and have given themselves very little in the form of options or warrants-in the words of Elton Jonston, they really want to build a company they can be proud of. All the insiders have ACBs higher than our current price which motivates them to make things happen. The insiders own over 20% of the shares out. They are still cashflow negative which I believe is the reason the MC is so undervalued for the potential of the company. They have been closing the cashflow gap over the last year and are poised to turn cashflow positive this year IMO with even a few of the opportunities they are now negotiating.

I strongly recommend you have a good look at the company, at our current MC of less than 8M dollars, there is huge upside here. Below are a few snippets of NRs from over the last 12 months to kick start your DD process.

Glorieux

From June 2010:

Valdor Technology International Inc. has completed the design and tooling for manufacture of the Omega enclosure package. The Omega enclosure package is designed to house Valdor's patented miniature SP and KSP splices. This product has numerous applications in the mining, oil and gas, aerospace, and industrial sectors.

The unique features of the enclosure will allow fan-out and splitting of fibre to various locations. The enclosure is waterproof and rugged and can withstand harsh environments. The enclosed SP and KSP splices do not require a clean environment or electricity for installation. This package can accommodate from one to 48 miniature splices; the conventional field-installable connectors that use epoxies and index-matching gels cannot be miniaturized, and therefore have no solution comparable with Valdor for this requirement. A patent application is in progress.

Fibre optics is the future of communications and fibre optic connectors are one of the major profit centres within this market. All signal transmissions, in their many and various forms, are being converted from electrical, using copper wire and coaxial cable, to fibre optics. The signal transmission business is in the early stages of a fibre optics bull market. The annual global market for fibre optic connectors is projected to grow to $3.45-billion (U.S.) in 2011 (ElectroniCast Consultants). Valdor holds several patents on its connector technology in strategic global regions.

From December 2010:

VALDOR ANNOUNCES AEROSPACE/MILITARY COMPANY MAKES PURCHASE ORDER

A North American aerospace and military supply company, with annual sales in excess of $25-billion, has purchased and will begin testing Valdor Technology International Inc.'s patented Impact Mount miniature SP fibre-optic connector. (This is Lockheed Martin)

In this phase of the project, the Valdor SP connector will be tested in high-power applications. Following qualification of the connector, Valdor will move on to the next phase of this project; it has a high priority and is on a fast-track schedule. This client has government and commercial customers worldwide and markets a wide range of equipment that uses fibre-optic components.