Stock prices for Victoria Industries (OTCBB: VIIN) rose today after the company announced it would pursue real estate development in Russia.
According to a press release sent out late Monday afternoon, Victoria Industries will be exploring the growth revenue potentials of the Russian real estate sector sometime in 2007, beginning first with the Siberian and Ural locations and then moving outward. At this point, the company has already started “evaluating various real estate investment opportunities,” and may enter a transaction later this year.
This news comes as little surprise. Victoria Industries is already well-known as trader in lumber and timber, most of which comes from Siberia. The forestry products include different sort and rounds of pine, larch, silver fir logs, sawn lumber, timber construction materials such as glued board and glued beams, flooring and furniture parts. The company’s principal customers are based in Eastern Siberia and Far East regions of Russia, and North provinces of China: Inner Mongolia and Heyluntszyan.
In addition, the company’s revenue grew 60 percent in 2006 to reach $8.4 million, while the company’s new income increased 250 percent to $414,000 in the same time period.
“The Company has been considering various development scenarios including manufacturing and distribution of construction materials as well as real estate development,” a recent press release from the company stated. “In 2006, in addition to its main timber trading business, the Company imported forestry machinery and construction materials from China which were sold within Russia. The Company has also received orders for future deliveries of the above items.”
In response to the news, shares for Victoria Industries rose an amazing 145 percent ($1.89) to $3.19 per share by mid-afternoon.
Calls to Victoria Industries’ investor relations office went unanswered.