You can file this one away under "cautionary tales for microcap investors." I first wrote about Vicon Industries (VCON) almost 7 years ago when the company changed symbols from VII to VCON. The stock was at a split adjusted $325.
The last trade was almost 4 years ago at $65 per share.
A couple weeks ago I received a buyout letter which made me for real laugh out loud with this line, "the estimate of value of Company as of September 12, 2024, was $0.00 per share"!!
Can you believe that? Attached is proof. I don't even know what to say other than this is a first. I'm getting a buyout at zero dollars.
Years ago CETX became the majority owner and they are sucking VCON up into the parent company now. VCON stopped filing in 2019 and has been on the expert market since its inception. CETX is shady and after this I'm upgrading them to the super shady tier.
When I wrote up the stock they had $7m annual revenue and a $2.8m book value. CETX acquired a controlling stake then de-registered to hide what they're doing and bled the company dry. Thank you SEC for not protecting anyone.
Attached is the letter for your enjoyment.
The insulting cherry on top is CETX putting out a press release yesterday pumping up a contract VCON just secured! They have no shame.
For fun here is a 10 year chart which encapsulates my personal return
And a 5 year chart so you can see the last trade at $65.
This is why I diversify. And a reminder of why you should be skeptical of any stock I talk about.
/////////////// update 20250220 here is the company's valuation report /////////////////
--Dan
disclosure: long VCON
My goodness. Did the attorneys bill VCON $0.00 per hour to write this declaration of theft?
ReplyDeletewell this needs a reread 50thousand is referred as 5000 so maybe the 0 is also a typo??
ReplyDeleteDan - would you mind uploading the Valuation Report that derives the value of zero.
ReplyDeletedone I've added a link to their valuation report. enjoy
DeleteWell the letter does say there are appraisal rights....
ReplyDeleteI recently saw this article about a stock. It is extremely small and could therefore fit. But unfortunately I have no experience with such things. Could it be promising? I'm rather pessimistic. https://kingfishcapital.substack.com/p/an-undiscovered-inefficient-special
ReplyDelete