VCG Holding Corp. is an AMEX listed security that has been trading in a range between $1.10 and $12.65 over the past year. With 16,898,000 shares outstanding, a recent price of $7.15 gives a total market capitalization of $124,538,258. While there are certainly larger companies, VCG Holding Corp. has definitely earned its place in the pack. Last year, VCG Holding Corp. created $0.09 in earnings for every share outstanding.
VCG Holding Corp. is currently priced by the market at 58.90 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.
With a share price under $50 a share and earnings per share below $1 a share, VCG Holding Corp. could be an interesting value proposition.
Friday, July 20, 2007
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