An obscure Danish penny stock company called Victoria Properties has a lot of investors, and its own management team, dumbfounded after it surged nearly 1,000% in just a matter of days and for no apparent reason whatsoever. Per Bloomberg, the company invests in residential and retail real estate in Germany but a quick review of financials reveals minimal revenue, consistent cash flow burns for several years running, minimal assets and very little remaining cash.
The sudden surge in the company’s stock price even forced management to issue a statement confirming that Victoria’s equity value is “still equal to about zero kroner”…which we assume is just a rough estimate.
‘The management in Victoria Properties wants to make clear that there has been no change in Victoria Properties’ economic conditions and that no plans have been disclosed regarding the company’s future strategy,’ Chief Executive Officer Rasmus Bundgaard said in the stock-exchange announcement. ‘The company’s equity is therefore still equal to about zero kroner.’
This post was published at Zero Hedge on Jan 24, 2017.
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