VKIN’s stock price has provided investors with an 18% return in the last year. As the price of traditional energy continues to rise, VKIN is finding success in providing “green” alternatives to its industrial and commercial clients. Its strategy seems to be working, as the stock price would suggest.
Viking Energy Group (OTCMKTS: VKIN) is using acquisitions in the renewable energy sector to bring double-digit returns to investors and position itself as a larger player. VKIN is pairing this acquisitions strategy with its focus on innovation and ESG—the focus on environmental sustainability, social awareness and consciousness, and governance that is ethical and transparent.
Key Tenets of the Acquisition Strategy
· Acquiring other small-market cap players in the renewable and clean energy sector
· Acquiring patents and other intellectual property so it can boast one-of-a-kind solutions to the market
According to CEO James Doris: “We are well positioned to assist with the power generation needs of commercial and industrial organizations while at the same time helping them reduce their carbon footprint to satisfy regulatory requirements and follow best ESG-practices.”
Recent Strategic Acquisitions
Over the last year, VKIN has used strategic acquisitions of both companies and technologies to grow its place in the market. With each of these moves, VKIN has positioned itself as an attractive stock to investors looking to add an ESG firm from the energy sector to their watchlist.
· Recently acquired a US patent related to carbon capture via its licensor ESG
· 2021 licensing agreement with ESG Clean Energy, LLC
· 2021 acquisition of Simson-Maxwell LTD. VKIN’s 60% stake gives it controlling interest in the power generation and industrial engine equipment
· In November of 2021, VKIN signed a promissory note indicating its intention to purchase New Rise Renewables, a producer of renewable diesel.
Why VKIN’s Strategy is Working
Rather than risking failure with young, untested technologies or undercapitalized firms, VKIN is focusing on battle-tested assets to bring change to the energy sector and more dollars to its investors.
VKIN’s strategy focuses on firms that are innovative and committed to sustainable energy solutions and overall carbon footprint reduction. Firms that possess these “ready-to-market” solutions bring an already established customer base and, with it, strong streams of cash.
Need proof that VKIN’s strategy is working?
Let’s start with the stock price.
In the last 12 months, VKIN’s stock price has rise from $0.60 per share to $0.71 per share—an increase of a little over 18%. For comparison, the NASDAQ and DOW Jones have both lost value over that same time period and the S&P 500 has only seen a 2% gain. VKIN has outperformed the S&P 500 9:1 in the last year.
Looking for more reasons to add VKIN to your watchlist? Let’s look at the firm’s 2021 year-end financials.
· In its most recent filing, VKIN’s year-end 2021 revenues were just shy of $38 million.
· Gross profit on those $38 million in revenue was $11.79 million, higher than 2020, 2019, and 2018 gross profits.
· The firm ended 2021 with a EBITDA of $6.2 million, which was the firm’s third consecutive year of positive normalized EBITDA.
How will its next acquisition add to its already proven track record of success with this strategy? Will the next acquisition be the one that helps move VKIN to more investors’ watchlist?
This article is part of a sponsored investor education program