Valhi Shares Popped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Valhi (NAS: VHI) rose as much as 22% before ending the session up 18%. Subsidiary NL Industries (NYS: NL) also rallied on Valhi's strength, probably because of an upbeat assessment issued by the stock ratings arm of TheStreet.com.

So what: In its report, TheStreet Ratings upgraded Valhi from "hold" to "buy," citing revenue and profit growth, expanding margins, and good cash flow from operations.

Now what: Interestingly, TheStreet's bullish stance is about as far as you can get from the consensus Foolish view. Motley Fool CAPS investors give Valhi just one out of five possible stars in rating the stock. Valuation is the most commonly cited concern. Do you agree? Disagree? Weigh in using the comments box below.

Interested in more info on Valhi?Add it to your watchlist.

At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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