Victura Construction Group Inc. (VICT)

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Victura Construction (OTCMKTS:VICT) Refuses to be Pumped

Promoters Fail to Inflate Victura Construction (OTCMKTS:VICT)

Victura Construction (OTCMKTS:VICT)’s performance over the last three sessions has been hardly stellar. After months of sitting idle, the ticker woke up at the end of last week, but instead of going up, it fell and lost a quarter of its market cap in a matter of just two days. Yesterday, some third parties decided that the stock deserves a chance to run. They paid $20 thousand to Stellar Media Group LLC, the entity that controls Beat Penny Stocks as well as a few other newsletters, and the pumpers organized a promotion for VICT.

Even they, however, weren’t able to bump up the share price. Thanks to the pump, the ticker did manage to attract about $218 thousand in dollar volume, but instead of heading north, it closed the session with a 3% loss at $0.029.

So, VICT is not the easiest stock to pump on the OTC. But is this really much of a surprise?

On the one hand, it might be. VICT managed to close 2015 with nearly $9.8 million in revenues and you have to agree that not many penny stocks can brag about figures this significant. On the other, however, investors reluctance to put their money on the line probably isn’t that shocking.

The revenues are indeed pretty decent, but the rest of the 2015 financial statement looks like this:

cash: -$104 thousand

current assets: $1.6 million

current liabilities: $2.3 million

2015 net loss: $771 thousand

The figures are hardly perfect and the same goes for the curricula vitae of the people running the company. Not that long ago, for example, a certain Jehu Hand was acting as VICT’s legal counsel. He was forced to leave when the SEC went after him for participating in a pump-and-dump scheme.

VICT also has close connections to Cherubim Interests Inc (OTCMKTS:CHIT) which is hardly the best performing penny stock out there (it’s been stuck at $0.0001 for almost four months).

There’s one more thing that could be weighing the stock down. In 2014 and 2015, VICT printed a total of 90.3 million shares. Of those, 20 million saw the light of day as a conversion of debt at $0.00125 and a further 10 million got issued for the same reason at $0.001 per share.

With an unknown amount of convertible debt outstanding and with the number of authorized shares sitting at “unlimited”, further dilution doesn’t seem terribly unlikely. Thinking through all the risks carefully is extremely important.

Tags: dilution, pump, VICT

About the Author

Borislav Tonev

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