On Wednesday shares of Victory Energy Corporation (Pinksheets: VYEY) rocketed 988% on emphatic volume. But do investors have it right with the current valuation?
According to our research the company boasts a break up value of at least $0.13 a share.
That’s assuming liabilities of roughly $1.2M and the absence of all assets aside from cash from the $17.2M settlement revealed earlier today.
Our calculation in determining the break up value of the company is very simple.
$17.2M cash from the settlement less an estimated $1.2M in unsettled liabilities (liabilities totaled $1.59M in the last reported quarter, September 2008) divided by roughly 120M shares outstanding for a grand total of $0.133/share.
The break up value is a 259% premium to the closing price on Wednesday.
So have investors got it right with Victory Energy Corp. (Pinksheets: VYEY)?