Valdor Technology International Inc. (TSX-V: VTI) (OTC: VTIFF)

	Website: www.valdor.com
	Read our report on Valdor Technology International, Inc.

Valdor Technology International Inc. (TSX.V: VTI) (OTC: VTIFF) connects the fiber optic cables that connect the world. In our opinion, Valdor’s Impact Mount™ technology components will soon be the fiber optic connector of choice by large telecom and technology providers. It’s just a matter of time before one of the major players inks a deal with them. We want to get you in on Valdor first, before the first major contract is signed.

The benefits of getting in early have never been clearer on any stock. In early 2000, when tech stocks were in their heyday, Valdor's stock price rose from $0.30 to $14.00 in less than two months. A $10,000.00 investment in Valdor's stock would have yielded more than $450,000.00 in profit. The stock made its move primarily on the strength of R&D and potential, but now that the heavy lifting is done and Valdor is generating revenue, in our opinion, we could see even greater returns. With the entire world moving to broadband, we want to get on board as Valdor climbs the ladder on its way to becoming the world’s premier means of connecting fiber optic networks.

Fiber Optic Connectors - Boring or Big Money 

Peter Lynch, the legendary investor and former manager of the Fidelity Magellan Fund, loved boring businesses. He specifically sought out companies whose products or services were in a boring area, or were seldom in the limelight. Lynch liked these kinds of firms because their ugly duckling nature tended to be reflected in the share price, so good bargains often turn up. Although Valdor is an exciting company, in our opinion, the quality of their fiber optic connectors will probably not be something discussed at dinner parties. As investors, this is a big positive for us in our search for undiscovered stocks with tremendous potential.

Fiber optics is the future of communications and fiber optic connectors are a major profit center within this market. Valdor's basic product line is the best. Their all-mechanical, field installable fiber optic connectors are revolutionary, since they can be installed quickly with compact hand tools and do not require epoxy, index matching gels,  electrical power, or expensive bulky installation equipment. The annual global market for fiber optic connectors is estimated to be $2 billion and is growing at a 10% clip, even in the current sluggish economy.

Valdor's three main technologies that have been developed into revolutionary, next-generation products are a line of Impact Mount connectors, the Heptoports, and the Omega Enclosures. Valdor's breakthrough Impact Mount technology is all-mechanical and offers robust long-term operation with minimal need for repair or replacement. These connectors do not contain epoxy or index matching gel typically found in other conventional connectors. The mounting concept is based on dynamically compressing stainless steel ferrules uniformly around fibers. This unique feature of the IMT connectors provides stable readings with little variation even in harsh environments and is precisely why the United States military is beginning to select Valdor over the competition.

Dr. Michel Rondeau, Valdor's CEO and President, is well known and highly respected world-wide in the fiber optics industry. It is important to understand that Valdor is not going head to head with the major players to displace the  conventional technologies that are represented by well capitalized, established companies. Its seasoned management team is focusing instead on niche markets where, because of technical advantages, Valdor is the only solution. Three of the major players in Valdor’s industry are Corning, 3M, and Molex. Independent unbiased third parties have tested and confirmed that technologically the Valdor connectors are significantly or dramatically superior to the conventional connectors.

Another one of Peter Lynch's rules was that he liked to see management having some skin in the game by owning a lot of stock. Directors of Valdor, and close associates, own more than 65% of the fully diluted Valdor stock and have personally funded the company. In our opinion, this speaks very highly of what their expectations for the stock price are. Their bread is buttered on the same side as every other shareholder. It is interesting to note that Valdor holds several patents on its connector technology in strategic global regions. It is also estimated that more than $20 million has been spent in R & D to bring the Company to its current state.

Valdor has been working with Lockheed Martin for over a year.  It takes time for the United States military to adopt new technologies, but this is in process.  Lockheed has evaluated numerous field installable connectors and Valdor’s is the only one that meets their stringent operating parameters.  Valdor’s impact mount connectors will undergo rigorous testing to verify that they will function as expected for the harsh environments where Lockheed Martin requires them, to allow progress on current projects.  Lockheed Martin is one of the largest defense contractors in the world.

Kaiser Optical Systems Inc. recently selected Valdor as one of its principal suppliers of fiber optic cable and connector assemblies. Valdor is currently designing four projects for the Kaiser Optical equipment line and has delivered protocol samples for all of them. Valdor is in preparation for the production phase of this project which is expected to begin this quarter. Additional orders have been assigned by Kaiser Optical for the purchase of Valdor products.

Kaiser Optical, founded in 1979, is a subsidiary of Rockwell Collins (NYSE: COL) and is a world leader in spectrographic instrumentation and applied holographic technology. In our opinion, a company like Rockwell Collins, with an $8.5 billion market cap and $4.5 billion in revenues, does its homework before making a company like Valdor one of its principal suppliers of fiber optic cable and connector assemblies. We are also of the opinion that soon we will see other multi-billion, blue-chip companies following suit and using Valdor's connectors. If this should be the case, this small company will get big overnight and stockholders will see tremendous profits from owning Valdor shares. The writing is on the wall and the smart money knows how to identify the trend.

One recent trend we have identified in Valdor's business is a significant increase in demand for its new line of LC connectors, as well as its other IMT products, during recent months. Valdor recently announced a purchase order for its new LC connector line. The LC connector incorporates a small housing and ferule and overall is about half the size of other standard Valdor connectors. A new production line has been developed for the manufacture of the LC connector.

The LC connector has recently experienced a rapid growth in popularity within the fiber optics industry. It has a variety of applications but is most commonly used in telecommunications. It is used especially in the major growth areas of fiber-to-the-home and fiber-to-the-curb, where smaller connectors are required. With completion of the LC connector production line, Valdor now holds a complete portfolio of the conventional and most widely used fiber optic connectors: the ST, SC, FC, SP, SMA and LC. In addition to these conventional connectors, Valdor carries the SP harsh environment connector, the SP miniature connector and the line of HeptoPort™ 7-Fiber Bundle connectors.

This trend is translating into sales and has resulted in a more robust sales pipeline. Valdor anticipates exponential growth in sales during 2012 as awareness grows and the IMT technology gains traction. Valdor has recently committed to expanding and enhancing its sales efforts. Valdor’s management team recognizes the firm’s need to leverage its leading-edge technology into solid sales and revenue growth. Accordingly, the firm has been adding to its sales and marketing teams. Early results have been positive and Valdor now has an extensive network of well-connected distributors and sales people who can bid on projects from which it might otherwise have been excluded.

Buyout! Blowing Big Gains Out of the Water

Even if you’ve just been investing for short time, it’s no secret that shareholders stand to make a lot of money when their company reaches a buyout deal and is sold to the highest bidder. But what you may not know is that buyouts happen in the telecommunications and technology industries all the time. As you probably know, telecom giant, AT&T made a bid for T-Mobile, in an effort to add it to their monstrous network and bolster its multi-billion dollar market share. How much are they willing to pay? AT&T is shelling out $39 billion, and that is not counting the huge legal fees they are racking up fighting the US Department of Justice, who is trying to block the deal on grounds that it would create a monopoly.

Now, consider the two companies. Both make billions in communications and are building out their network with miles and miles of fiber. With a miniscule market penetration of between 0.5% and 2.5%, Valdor could become a takeover target for major companies that direct sell fiber optic products and services. How much do you think a large telecom company would be willing to shell out for a proven winner with the technology to connect its network and make it better? How about a competitor? Once the contracts from major fiber optic network owners start coming in, wouldn't it make sense for a larger company to buy Valdor outright? A $0.30 to $14 move could just be a drop in the bucket if this happens. The move could be even bigger if any other companies jump in and put an offer on the table. As shareholders, that puts us first in line to profit when this happens. The only real question you need to ask yourself is if you will be on board to collect when it does? In our opinion, we believe Valdor is in discussions with several major companies that, in the near term, could place substantial purchase orders.

About the Fiber Optic Industry

Fiber optic cables are simply glass or plastic fibers that are used to carry signals historically carried by copper wires. Instead of electrical impulses, fiber optic cable use light waves to transfer the data. The reason everyone wants fiber is that the use of light allows for the transmission of orders of magnitude more data at much higher speeds over much larger areas than traditional copper wiring or coaxial cable. The reason we are so excited about Valdor is that it is next to impossible to manufacture single lengths of fiber optic cable long enough to span a country. As a result, specialized connectors, like those Valdor makes, are deployed. Fiber optic technology relies on connectors to bring the light signal into the fiber optic cable and other connectors to transfer the signal from the ssource to the cable and from the cable to the recipient. These connectors must transfer the signal without causing disruption or degradation. For certain applications, such as high temperatures, atmospheric pressure differentials, and specific medical conditions, highly specialized connectors and equipment may be required; this is where Valdor’s industry-leading technology comes to the forefront.

The real opportunity for Valdor lies in the exponential growth of the fiber optic industry, a growth encompassing far more than simple data transmission over the Internet. At present, nearly all data is transmitted via fiber optic cable: data networks; internal data communication within aircraft and other moving vehicles; external communication in fleet to base operations; drilling and exploration projects; all equipment required in mines, mills, and factories; and a host of other applications, many still to be discovered. The industry can only expand as old copper wires are replaced with new fiber lines, and old fiber optic lines are updated with newer fiber technology. Currently, the industry is posting quality growth in annual sales. As developing nations create new communications networks and move towards newer technology overall, Valdor's state-of-the-art equipment becomes very beneficial for the proper functioning of each network.

How big is a fiber optic cable? The fiber in question is a fiber-optic strand of glass or plastic as thin as a strand of hair. The fiber transmits light to send and receive information, much more information than can be conducted through metal wires. Google is turning up fiber networks all over the world that will be able to achieve speeds of 1 gigabit, around 100 times faster than a typical broadband connection.

Verizon Communications Inc. recently completed a fiber-optic network expansion project in Singapore that increased network coverage and doubled capacity for enterprise customers. Located primarily in the northern and western parts of Singapore, the new fiber network was built to provide access to such network facilities as submarine-cable landing stations and data centers. Teams from Verizon and M1 Ltd, a service provider in Singapore, worked for two years to complete the project. The new fiber-optic ring now extends 160 kilometers (100 miles). The network now provides support for 40-Gbps data rates, with the ability to increase this figure to 100 Gbps in the future.

Emerson Electric Co., a U.S. maker of electrical products, won a A$100 million (US$98 million) order to build facilities that form part of Australia’s national optical fiber network. NBN, formed by the Australian government to build the A$36 billion telecommunications network, awarded Verizon the contract. Australia has a landmass of 7,617,930 square kilometers (2,941,300 square miles) and NBN will lay fiber optical lines to 93 percent of the population by 2018. The number of connectors necessary for a network this size will be truly staggering.

If it seems like everyone is getting fiber, you are correct in your thinking. Sierra Leone secured its first fiber optic connection to the outside world last week with the arrival of the Africa Coast to Europe submarine cable in the capital Freetown. When complete, the 17,000-km (11,000-mile) Africa Coast to Europe submarine cable will run from France to South Africa, connecting 23 countries. The cable was launched by France Telecom as part of a consortium with telecom operators in participating countries. Alongside Sierra Leone, the Central African Republic, Chad, the Democratic Republic of Congo, Eritrea, Guinea, Liberia, São Tomé and Príncipe and the Seychelles all lack fiber optic infrastructure to the rest of the world.

Last week Uganda entered the second phase of an Internet backbone infrastructure measuring 1,380 kilometers (855 miles), bringing the total amount of fiber optics laid in the country so far to 1,548 kilometers (962 miles). In the final phase, which begins in January, 307 kilometers (191 miles) of fiber will be laid from the Uganda capital, Kampala, to the Rwanda border to complete a link from the Kenyan port town of Mombasa.

The European Union, which is an economic and political union of 27 independent member states located primarily in Europe, has drafted a proposal that would force European telecoms operators such as Telefonica and France Telecom to lower the charges they levy on firms to rent their copper networks. Under the EU proposal, telecom firms will be exempt from having to reduce their charges if they can show credible investments in fiber-optic networks. The advantage of fiber-optic cable is not necessarily in the bandwidth it can provide but the reach. It is widely known that with copper wire there is an inherent limitiation as to the distance (approximately 2 miles) the end users can be from the telephone exchange.  Fiber-optic cables eliminate that problem and many others.

Summary

Rodman & Renshaw, the most active PIPE placement agent, is "reallocating resources" in its research department from covering Chinese companies to following companies in faster growing industries, including technology and social media. Now is the time to buy tech, which is where the bulk of the world's fortunes have been made. Companies like Apple Computer and Google started out with a concept and a dream of doing something better than the competition. With the whole world moving to fiber, in our opinion, you can now secure your chance at staggering profits by acting on Valdor Technology International today.

The difference between Valdor and many other technology stocks is that Valdor’s technology is not simply some marketers dream but it actually exists and has been tested and proven.  The one step remaining is wider market penetration, and that is where Valdor is currently focusing its efforts.  Buy Valdor right now before it completes the sales ramp-up, and participate in the tremendous profit potential .

Put this down now, and consider contacting your broker or login to your online trading account and give them Valdor’s ticker symbol and grab up as many shares as you can comfortably afford. On the TSX Venture Exchange Valdor's ticker symbol is VTI. On the OTC market in the US, the ticker symbol is VTIFF. Valdor's management plans to up-list the stock in the US to a higher level on the OTC in the near future. 

The fiber optic industry is booming. If shares of Valdor increase 4,567% and trade from $0.30 to $14.00 like they did in 2000, fortunes will be made. With consolidation in the telecommunications industry and expansions of fiber networks all over the world, it may be only a matter of time till Valdor becomes a household name, and by then, it’ll be too late for you to lock in those gigantic 4,567% gains. In our opinion, you should consider adding shares of Valdor to your portfolio today!