Last week investors learned of a miniscule $17.2M cash settlement awarded to Victory Energy Corp. (Pinksheets: VYEY).
PennyStockHaven.com was the first penny stock site to report on this event and suggest shares were trading below fair value. Despite our evaluation, shares took a steep dive after trading well in the early part of last Thursday’s session.
Trading took such an unprecedented turn that we summarized our frustration with the following: “F%$^!”
Additionally we began investigating into the matter. Calls to both the company’s Transfer Agent and Interim Chief Executive, Robert J. Miranda, went unanswered.
Fortunately there was another voice (besides mine) on the other end of the line when we dialed the number corresponding to Victory Energy’s office. A woman who identified herself as ‘Ann’ informed us that Mr. Miranda is out of the country but will return early next week, “try then”.
We will Ann, don’t you worry.
The increasing volume and selling pressure on the part of notorious MMs both point to the likelihood of dilution. This, however, is our assumption since we were unable to reach the company’s Transfer Agent.
In our assumption, there are three persons we hold accountable.
The first is the Interim CEO, Robert J. Miranda. Just the word ‘Interim’ gives us the feeling that he won’t be around much longer and may be looking for a substitute executive to take his place in the company. We’ll get back to this later.
The second is/are shareholders. When you’re holding onto a stock that’s posted a gain of several hundred percent you have to be an absolute jarhead to not take profits. Add shareholder who’ve held a losing position for months and saw an opportunity to recover at least a portion of their investment in all the ‘excitement’.
Third we have the company itself. Could they be issuing shares to raise money for a new start-up? That’s something we hope Miranda will be able to answer when we attempt to reach him this week.
According to Nevada Secretary-of-State (SOS) , Victory Energy’s standing is in default. With litigation having taken up the bulk of the company’s time this comes as no surprise.
But it would be a good sign if the company were to re-establish ‘good standing’ as a business.
Suppose Miranda was caught in a Gordon Gekko moment and ordered [Ann?] to “dilute that son-of-a-bitch”. Suddenly all 490M authorized shares are outstanding (this figure is likely far from reality).
The cash value per share is still at least $0.035. That would mean the market price is below fair value.
‘Interim’ has a beautiful ring to it. Try saying it. Now once more. All right, that’s enough.
Bluntly put, if Robert J. Miranda is the ‘interim’ CEO, perhaps another is anticipated to take his place and use the settlement monies to turn Victory Energy Corp. (VYEY) into a viable business.
Our research is far from over. If there truly is value to Victory Energy Corp. (VYEY) the share price will reflect that value.
It may take weeks before that value is reflected. Sometimes good things take time.
We’ll do our best to keep you up to speed on developments.