Some stocks are just head-scratchers to try and grasp what is going on with valuation and market reactions without taking a deeper delve into due diligence.
Take, for instance, Victura Construction Group, Inc. (OTCPK:VICT), a Bedford, Texas-based holding company focused on strategic acquisitions within the construction industry that service restoration and re-building needs following catastrophic events.
As of September 30, Victura had 230,856,421 shares outstanding. Trading at $0.0021 per share, like shares are Wednesday afternoon, equates to a market capitalization of about $485,000.
The company hasn't filed documents with the Securities and Exchange Commission in years now, but has provided financial information with OTC Markets Group to give a glimpse under the financial hood. That included a net loss of $791,941 through the first nine months of 2017.
Liabilities outweighing equity by about $8 million also helps explain the lack of positive attention from Wall Street, but we've all surely seen a lot worse.
12 days ago the company announced acquiring $100 million in AAA-rated assets.
More succinctly, Victura bought 2.045 trust units from NVC Fund LLC, a diversified investment holding trust. Victura says the fair market value of one of the units is $48,881, meaning that the total acquisition has a value of $99.96 million. How the acquisition transpired was not disclosed in the news release on the matter.
In November, the company entered into a letter of intent to acquire Cherubim Custom Millworks (CCM), a custom interior and architectural woodwork company. That was promptly followed by a letter of intent to acquire homebuilder North Texas Builders and Remodelers (NTXB). No news was released on if the CCM LOI moved forward, the the buyout of NTXB was completed today to little market fanfare.
What's the bottom line with the trust units? Was the Cherubim deal finalized? What is the expected impact of the NTXB buyout? On its face, Victura seems to be moving the right direction, but the math just doesn't add up without more information on the latest acquisitions.
Shares are heading back down towards multi-year lows and may struggle to find any tailwinds until additional clarity is provided on whether or not these purchases are going to get the company's books into the black.
Shares are down 12.5% at $0.0021 on volume of 43.4 million with two hours left in the trading session.
