FRIDAY TIPS ON VCTY:
VCTY
Oct. 14: Videolocity International, Inc. (VCTY) acquired a new subsidiary: Avtar
Singh Construction Co. (P) Ltd. (ASCC), one of the major developers in
Chandigarh, India, with strong ties to the local community and municipal
governments. ASCC
owns three different companies which run into various fields, namely
roads and highways, real estate, and leasing/financing, and offers total revenues
in the range of $5 million USD. ASCC's
reputation is based on strong customer service, technological
sophistication, and an impressive record of achievement. Many of the
civil engineering projects executed by ASCC have set new benchmarks in
terms of scale, sophistication and speed.
Oct. 14:
VCTY's new subsidiary, Avtar Singh Construction, clarified the nature
of its current legal dispute with Kotak Mahindra Bank, Ltd. As per the
posted filing, the Bank claims "...Rs 2,72,647.00 as on 12.7.2010..."
from Avtar Singh Construction. This sum represents approximately
$6,139.2 USD, and not a liquidation of the multi-million dollar company,
as negative market forces have erroneously suggested.
Oct. 8: VCTY
is in discussions to sell subsidiary Tactician University to Corporate
Universe, Inc. (COUV). COUV is looking to acquire Tactician University -
a progressive Chinese think tank, management education and consulting
firm - on an all-cash basis. COUV management is impressed with
Tactician's track record of success, and sees great potential in
Tactician's business model.
MMG COMMENTARY:
This company has taken everyone by surprise. It was on the cusp of
completing the China Hydro-electric merger, when out of nowhere, the
India construction company came forward. The India construction company
was a much more favorable merger candidate, with much more solid
revenues, growth and potential. This does not rule out the China
Hydro-electric company; however, the message is loud and clear from many
followers of VCTY that they do not wish to see VCTY become a utility
company. VCTY management is acting in accordance with shareholders'
desires, and is hoping that the merger with the Indian construction
company will bring some real substantial value to VCTY. VCTY will
shortly apply for a name change to reflect its new business.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
