20 Years of History
Investments, Development & Growth
Viking Investments Group, Inc. is a global financial advisory and investment firm with 20 years of history. We invest and assist in the development of businesses to the point of maturity, building on sustained growth and expansion, guiding them in the process of becoming strong and mature companies.
We incubate and develop in a cost effective and risk adverse approach, a diversified portfolio of a number of Internet based start-up companies
in the emerging growth countries, with emphasize on The People’s Republic of China, with the ultimate goal for them to become publicly listed companies in the United States or elsewhere. After
an initial incubating period of 3-6 months, Viking will evaluate each project through testing, marketing and research, and determine the potential for success and commercial viability, or, to close
it down. If, during the initial development phase, we determine to continue the project, we will provide, either through in-house resources, or by inviting third party investors and / or
strategic partners resources to participate in the future development in consideration for equity or debt financing, as the case may be.
Although we are sector and geopgraphic agnostic, our preferred model being mid-stage American Internet companies with established and proven track record that could feasibly be localized into emerging markets, such as but not limited to China and India, the two most populous countries in the world. The American Internet / Hi-tech sector is unparalleled across the globe, and the innovative and creative technologies it produces have the ability to transform the current Internet / Hi-tech scene in emerging markets, which has been unable to spur entrepreneurship and development of the Internet industry. It is our belief that coupling eager emerging market businesses with cutting-edge American creativity and investments will result in the successful localization of technologies as well as real returns. The rise of middle-class consumers in these emergeing markets will not only assist American Internet / Hi-tech entrants, but also local industries, that have expanding customer-bases with higher amounts of disposable income.
Emerging markets bring not only the opportunity of fast growing consumer bases for their domestic suppliers, but for international companies that establish connections and reputations before competitors reach these markets. Numerous American hi-tech companies have capitalized on the lack of hi-tech innovation and capital for growth available in emerging markets and have gained strong footholds in niche markets, utilizing platforms that have already succeeded in the United States and localizing them to perform well in foreign markets as well. It typically takes several years to complete an incubating, during which Viking Investments works closely with the client company’s senior management, financial team, investors and service providers to complete the incubating process. Typically, Viking provides initially all or part of the costs on behalf of the client, until the company reaches a certain stage at what time additional investors will be brought in.
We see strong opportunities among the rapidly advancing emerging markets which contain a new wave of growing companies prepared to capitalize on the tremendous rise of the middle-classes currently transforming these economies.
Micro-Cap Historical Performance
Typical Micro-Cap companies may have a valuation ratio that is between 30% and 50% discounted from the ratio of a similar Small-Cap company, due to prevailing market assumptions and disparities between coverage and initial liquidity. This in turn leads to historically greater returns; a study by the University of Chicago School of Business completed in 2009 revealed that Micro-Cap returns have been over 2 times as great as those of Small-Cap companies, 3 times as great as Mid-Cap companies, and over 10 times as great as returns from Large-Cap companies, in the period between 1925 and 2009. The same study also found that larger market capitalization companies had significantly higher P/E ratios than smaller capitalization companies, which leads to investors of Micro-Cap companies benefiting both from the increase in revenues as well as the increase in market multiple ratios of their companies as they grow and become larger-cap companies.
In addition to outperforming the larger-cap companies historically, Micro-Cap stocks have tended to perform better than large-cap stocks in periods following recessions. According to the National Bureau of Economic Statistics, regarding U.S. recessionary periods from 1996 to 2001, Micro-Cap assets classes outperformed large-cap assets classes by 47% in the first year after the official end of the recession and by 25% in the second year.
Viking Investments is neither an underwriter as the term is defined in Section 2(a)(11) of the
Securities Act of 1933. Viking Investments is not an investment company pursuant to the Investment Company Act of 1940. Viking Investments is not an investment adviser pursuant to the
Investment Advisers Act of 1940 nor is it registered with FINRA or SIPC.