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hap,
Do you really think Matin would buy shares when he can issue them to himself for free as "compensation"?
The fact the shirt was made in Pakistan is probably more a positive than a negative as long as the sale hits the US books.
Thanks. No hard fellings as far as I am concerned.
Thanks. No hard fellings as far as I am concerned.
Growth,
"Have you ever heard the phrase " fake it until you make it"?"
No, never heard the saying. But I have heard: "A leopard does not change its spots". You think Matin will stop faking just because he got a few bucks in his pocket? My opinion is no way.
If I am wrong about Matin, I will be the first one to apologize to the man. But based on what I have seen over the years in terms of press releases and the realities, I doubt I am wrong.
King,
The problem is that Matin has used "Wholly Owned Subsidiary"
to describe Veltex Textile Mills way BEFORE the previously posted shareholders meeting when he wanted to issue 18 Million post reverse split shares for the Textile Mill. Why is this point lost on you?
You are correct, past performance is no predictor of future stock price. But credibility and belief in the numbers is. If the market does not believe the financials or the credibility of the information, then the stock price will reflect it (as you currently see with the Veltex stock price).
KCA Garments was purchased last year. If they had a website substantially prior to being purchased, and then after the purchase the website was updated to reflect that it was owned by Veltex, that would be much more credilble in my opinion.
Any website that comes from Matin is simply just an extension of Matins story and the information is of little value. I think Matin has a real business, but it is nowhere near what he claims it to be. I think the previous press release I posted support this because the reality was nowhere near the claims.
I have seen enough Balance Sheets, Statement of Cash Flows, and Income Statements to know good ones from bad ones. Thats all you need to know.
Oh really texastex...I am sure I understand financials better than you or King so don't give me that BS...pumpers always resort to personal attacks to change the subject...
By the way, are you familiar with ICT-Consultants? I think you should stick to webdesign and stop pumping your clients...
www.kcagarments.com
www.velvettextilemills.com
www.veltexcorporation.com
The above websites all resolve to the same IP address (216.7.174.38) which means they are hosted on the same server
by most likely the same hosting company (in Colorodo). Therefore, my conclusion is that the information provided by these websites are all derived from the same source: Matin. So take the information provided on them with a grain (or rather a bucket) of salt. I am sure texastex knew that and chose not to disclose it.
To be fair, ICT-Consultants (which is also hosted on the same server(s) as above websites), looks like a talented, professional webdesign group based out of Texas (see www.ict-consultants.com) and their list of clients is impressive (Veltex is included in their list of clients). But that does not mean Veltex is credible. As Raw says, credibility is earned and Matin's past history has demonstrated anything but credibility.
Or possibly this one might get your attention - when in May of 2004 he reported sales of 20 Million and NI of $1.5, but the 2003 audit (consolidated statement) shows a net loss of (451,164)!!
Veltex Reports Record Sales
MAY 26, 2004 -- Veltex Corp., City of Industry, Calif., announced record sales of $20 million for fiscal 2003, compared to $13.9 million in 2002 and $8.7 million in 2001.
The company reported net income of $1.5 million for the year, compared to $1.6 million in 2002 and $1.3 million in 2001.
According to Javeed Matin, chairman and CEO, the company is projecting 2004 sales to exceed $25 million. Veltex is a vertical manufacturing, import and distribution company. Its Veltex Apparel division specializes in caps, apparel and apparel accessories for the promotional products and imprinted sportswear industries.
Or maybe this one in 2004 that said Matin wanted to reverse split (1 for 100) and wanted to issue 18 million shares post split for the remaining shares of Veltex Textile Mill ( a wholly owned subsidiary!! )
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS OF VELTEX CORPORATION
Dated August 25, 2004
Notice is hereby given that a Special Meeting of the Shareholders of Veltex Corporation, (a Utah Corporation hereinafter referred to sa the "the Company") has been called by the Company's Board of Directors, to be held on the 15th day of September, 2004 at 9:00 a.m. at 342 East 900 South, Salt Late City, Utah (the office of American Registrar & Transfer Co.,) for the purpose of submitting the following proposals to a vote of the Company's shareholders:
a) To reverse split the Company's outstanding shares of common stock on a 1 share for 100 shares basis.
b) To issue 18,000,000 shares of the Company's common stock for all of the outstanding shares of Velvet Textile Mills Limited.
c) To conduct any other business that may be necessary as determined by the Board of Directors.
The Board of Directors has fixed the transfer agent's close of business on August 27, 2004 as the record date in order to determine shareholders entitled to notice of and to vote at the meeting (and any adjournment thereof), and has appointed Javeed Matin as Chair to conduct the meeting.
The Company has 195,231,946 shares of $0.001 par value commom stock issued and outstanding as of the record date, each of which is entitled to vote on the matters to be voted on at the Meeting. In order for the holders of the Company's common stock top take action on said matters a quorum (under applicable Utah law, a majority) of the Company's issued shares or at least 97,615,973 shares, must be present at the meeting and a majority vote of a quorum will constitute the act of the shareholders.
However, shares owned by management of record and the shares represented by proxies appointing management exceed the number of shares required for a quorum. Accordingly, no proxies are being solicited in connection with the Meeting.
By order of the Board of Directors
Javeed Matin
Chairman & CEO
Or how about this press release in 2003 which half way through the year says "the trucking business is just fine" and "we do not to do a reverse split"!!!
Veltex Corporation Will Not Reverse Split Stock
http://biz.yahoo.com/prnews/030505/lam100_1.html
Monday May 5, 12:41 pm ET
DIAMOND BAR, Calif., May 5 /PRNewswire-FirstCall/ -- Veltex Corporation (OTC: VLVT - News) announced today that during the shareholder meeting on April 28th and April 29th, the shareholders have approved the following:
Raising the authorized shares to 200,000,000 divided into two classes of
stock:
1. 100,000,000 shares of voting common stock, par value
$0.001 per share;
2. 100,000,000 shares of preferred stock, which may be divided into such
class and series, with such preferences, limitations, restrictions
and relative rights, as may be determined and designated from time to
time by the board of directors without requirement of shareholder
action or approval.
According to CEO Javeed Matin, "We do not want to reverse split our stock. Many shareholders have voiced their own concern and the decision was made that a reverse split is not in our best interests. I realize the consequences that most reverse splits have on a company's stock and I know a reverse split is not what our shareholder's or myself want at this time. Our trucking continues to do fine, as well as our other businesses, and revenue continues to be robust."
Roger Brunetti is no longer President of Veltex Corporation, and Javeed Matin will again be both President and Chief Executive Officer of the Company. Veltex Corporation is a diversified holding company composed of four divisions: Trucking; Distribution, specializing in caps, apparel and apparel accessories for the Promotional Products Industry; Manufacturing, specializing in the manufacture of high quality fabrics including velvets, 100% cotton twill, denim, sheeting for consumer and industrial products; and Marketing specializing in online marketing and promotions for the vacation ownership industry.
Or how about this press release in 2003 which half way through the year says "the trucking business is just fine" and "we do not to do a reverse split"!!!
Veltex Corporation Will Not Reverse Split Stock
http://biz.yahoo.com/prnews/030505/lam100_1.html
Monday May 5, 12:41 pm ET
DIAMOND BAR, Calif., May 5 /PRNewswire-FirstCall/ -- Veltex Corporation (OTC: VLVT - News) announced today that during the shareholder meeting on April 28th and April 29th, the shareholders have approved the following:
Raising the authorized shares to 200,000,000 divided into two classes of
stock:
1. 100,000,000 shares of voting common stock, par value
$0.001 per share;
2. 100,000,000 shares of preferred stock, which may be divided into such
class and series, with such preferences, limitations, restrictions
and relative rights, as may be determined and designated from time to
time by the board of directors without requirement of shareholder
action or approval.
According to CEO Javeed Matin, "We do not want to reverse split our stock. Many shareholders have voiced their own concern and the decision was made that a reverse split is not in our best interests. I realize the consequences that most reverse splits have on a company's stock and I know a reverse split is not what our shareholder's or myself want at this time. Our trucking continues to do fine, as well as our other businesses, and revenue continues to be robust."
Roger Brunetti is no longer President of Veltex Corporation, and Javeed Matin will again be both President and Chief Executive Officer of the Company. Veltex Corporation is a diversified holding company composed of four divisions: Trucking; Distribution, specializing in caps, apparel and apparel accessories for the Promotional Products Industry; Manufacturing, specializing in the manufacture of high quality fabrics including velvets, 100% cotton twill, denim, sheeting for consumer and industrial products; and Marketing specializing in online marketing and promotions for the vacation ownership industry.
Here you go King,
Here is a link to a 2002 press release from matin that states:
"The Veltex U.S. operation is a distributor of high quality fabrics for apparel industries and an importer of caps, T-shirts, twill shirts, shorts, and other ready-made garment products for Promotional Product Industries. Veltex also owns 4 trucks (18 wheelers), carrying Veltex goods as well as providing trucking services to one of the largest trucking companies in the United States."
So where are the sales for this non-trucking activity in the 2003 audit?
Here is the link to the full press release:
http://www.apparelsearch.com/asap/_disc4/0000015a.htm
Uneducated? I have more degrees than you can count. If you want to insult someone, look in the mirror and insult all you want.
King,
Sorry, did not mean to mispell your handle...anyway, control of management at Veltex Mills is my interpertation of the statement in the audit which may or may not be correct.
Kink,
The transfer of the money is only one of the issues. The other issue is not having control over management of Veltex Mills. Not sure how this is possible if Veltex is truely a wholly owned subsidiary
Like I said, I think Mice/textile is nuts. But I suspects there are some elements of truth to his ranting. After all, it has been well established that Matin does not tell the truth (i.e MBA from Asheville in London England, etc).
If we get yet another new Auditor for the 2004 audit, or if 2004 audit is not performed, then it is time for all to run for the hills.
Kink,
The transfer of the money is only one of the issues. The other issue is not having control over management of Veltex Mills. Not sure how this is possible if Veltex is truely a wholly owned subsidiary.
tex,
"Veltex is managed from the US"? How can you make that Statement after the 2003 audit. Here is a statement from the audit:
"Due to the restrictions placed on the transfer of funds by the Bangladesh government and due to the seperate management of the Bangladesh operations and US operations, these financial statements are un-consolidated with its subsidiary Veltex Textile Mills, Ltd"
This basically says US management has no control over operations in the Veltex mills and therefore Veltex (which based on the 2003 audit is mostly the Textile Mill) is not managed from the States.
Yeah, the 2003 audit shows exactly how successful Matin has been...there is an old saying: "where there is smoke, there is fire". While I think Mice/Textile is on the nutty side, I do think that he is the smoke in this old saying.
Raw,
I have been making the same point for a while and I agree with you 100%. If you have no access or control over the cash/assets, what good is it? And if the bangladesh assets are discounted, then Veltex has nothing but its share price in the states. And that is why Matin is trying so hard to pump up the price. I think you should check that share count again soon as I think Matin will be unloading some more shares soon.
King,
No one yet has offered an explanation for how Veltex can have zero (0) in sales in the US in 2003, but yet claim to be a wholesaler for the textile mill. I know the trucking sales were lumped into discontinued operations, but there should still be some sales for wholesaling function in the US. Unless you are saying that customers paid for their goods directly to the Bangladesh entity. This is just a little bit fishy...
No, as far as I recall Gidget was never an announced as an acquisition. For all we know it is a seperate legal entity that has no legal connection to Veltex (despite the fact it is promoted on their website). With Matin, everything is a mystery.
Years past Veltex had another so-called division in the US that was disolved called "Go-Vacations" (or something like that). But look at the "audits" for years past and you will see nothing about this division as if it never existed (no sales, no breakout of expenses for the division, absolutely nothing). But it had a website and Veltex got some mileage on a few PRs.
Paul, Lets talk about your theory:
"Matin lost control of this asset thru notes he signed putting his asset as garanty but having the right to get it back whevever he could payback his notes."
First, the Veltex Textile Mill by virtue of being a "wholly owned subsidiary" is not Matin's asset, but rather an Asset of Veltex Corporation, a public company (which as you know trades on the pink sheets). By being a shareholder of Veltex Corp, Matin has a claim on this asset, along with other shareholders of Veltex.
Now how exactly does Matin lose control of Veltex Textile Mills? If Veltex Textile Mill is a wholly owned subsidiary, then all the outstanding shares of Veltex Textile Mill are owned by Veltex Corp. So if this is true, he did not sell shares of Veltex Mill to anyone else to lose control. If we assume he got a loan and used the Mill as collateral, then the loan should appear in the financials for the Veltex Mill (there is a Notes Payable Current Liability of $3,050,214 on Balance Sheet of Veltex Mill).
But when someone gets a loan, they still own the assets and the cash that is generated by the assets (as long as they don't default on the loan agreement). The Veltex Mill has
$8,327,526 in cash on its balance sheet, enough to pay the short term note payable twice over (assuming that is the loan in question).
Based on the provided information (if accurate), your theory can not be true, unless..........MATIN is lying his ass off and Veltex Corporation does not own Veltex Mill in Bangladesh!!!!
Thanks. You are correct. I forgot to add the par value component (It was late last night and I was in a huury to get to sleep)...
Shrotker,
I noticed something in the financial staements that does not add up. In the "Unconsolidated State Of Stockholder Equity" table, Stock issued for cash resulted in additional paid in Capital of $634,702 and Stock issued for Services resulted in $106,000 of additional Paid in Capital.
On the Statement of Cash flows however, there is a line called "Stock Issued for Services" in the "Cash Flows From Operating Activities" section for $120,000 (why is this not $106,000??) and there is no line anywhere that I can see in the statement of cash flows for "Stock issued for Cash". In all audits I have seen, issuance of stock for cash is in the "Cash Flows form Financing Activities" section as raising cash through the sale of equity is a finance function. Where one would expect to see Stock Issued for Cash in the Finance section, I see "Principle Payments on Long Term Debt" for
$755,450 as an inflow of cash. Normally a "payment" represents an outflow of cash. What am I missing here????
These numbers would be good number except for a few small problems:
1) Almost all the assets are in Banglades including the cash. Cash can not be transfered to the US due to govenernment restrictions (tax related?, other reasons?).
2) If Veltex has no control over the management/operations in Bangladesh, then they have no control over the cash and assets in Bangladesh. From a US perspective, one should assume the cash and assets do not even exist under these circumstances.
I saw the audit last night on the website (thanks to someone that posted here) and I bailed out first thing this morning. Got out with no damage (other than my original investment). Will look for another opportunity to get in at a lower price and then wait for a spike. Just a matter of time with Matin before the next pump PR...
jhawk75,
I am talking about sales/revenue, not profits. So my staement is correct. If sales and revenue are off by 33% in 2003, what makes anyone beliew that his lying ass will be any closer to the $41 Million he claims in Sales/Revenue for 2004? This guy has no clue about financials and no financial system in place to keep track of sales/revenues/profits.
Can someone tell me why the "audited financials" for 2003 show sales of $15 Million, but Matin was touting sales of $19.9 Million in 2003 (and in fact the web page that has the audit info has $19.9 Million for 2003 just below the audit document links). Granted that sales for the trucking business was not included as it was collapsed in the discontinued operations piece, but the sales for the trucking piece was only $758K. Where did the other $5 million in revenue evaporate to?
And trucking business was the only business in USA that generated any sales? Didn't they have a "Go Vacations" subsidiary at that time also? Wasn't veltex apparel around back then also? How could they possibly not show any Sales in the States if they are acting as their own distributor for Veltex Textile Mills? Are they saying that people in the states purchased directly from Veltex Mills in Bangladesh and paid them directly and therefore States Operations recognized no revenue(I find that hard to believe)?
There is something very very fishy about the numbers in this audit.Now I know why Matin issued that press release this morning. He wanted to get one last pump in so he can dump a few more shares above $1 as this stock will certainly tank tomorrow.
Given that the day is half done with no press release, I doubt an audit will be released today. Since today is a slow trading day due to the easter holiday, if he has an audit PR ready to be released, and that is a BIG IF, then it would probably be released tomorrow. Remember, Matin wants to generate demand so he can sell shares into the demand at a premium. If he issues on a slow trading day, then he would not maximize his return on the sale of shares.
Raw, get ready to check the outstanding share count after the PR (if it is issued)...
That may be true. Spike may not come this week, this month, or months from now, but spike will come (assuming Matin's lies do not catch up with him). I have watched this stock over the last two years and there were a number of spikes each year so there is no reason to believe that won't continue, especially as persistent a liar as Matin has been....
No chance shrotker for a release tomorrow. Matin issues news releases for a reason; to sell additional shares into the artificially generated demand. If he issues the press release tomorrow, investors will have a whole weekend to review the PR and find inconsistencies, which means no probable spike in demand by Monday (or Tuesday?).
At least you are honest about your motives and your position. Like you, I have added to my position in the hopes of taking advantage of a price spike. Taking a chance that maybe I will be able to break even or get a small gain, but I'm not holding my breath. I believe that Veltex is a real business, but I (like the market) do not believe his financials or much else Matin has to say.
I tried once to get these documents. Because they are paper filings it is not easy. I notice there was a registration this year. From what I have beem able to find, to get paper copies your either have to go to the Public Reference room in Washington DC, or send an Email to publicinfo@sec.gov and they get the info for you for a fee.
I notice there was a registration this year. That is interesting. I am going to try and get the filing again myself. Seems that everything Matin does is intended to keep investors in the dark. He could have filed electronically and made it easy for us to get the information, but that would be so out of character for Matin!
My guess is that Matin unloaded more shares. Look at the volume, 437K shares. You have a lot of buyers and 1 big seller (i.e Veltex) selling into the demand generated by the press release.
Rawnac, time to call the transfer agent again....
Ask yourself one simple question: How can a company that claims to have $40 million is sales and have a claimed net income of $7 million afford to have their website down for over a week while they remodel?
Don't let the website fool you. This is about the third or fourth reincarnation of their website. Real companies that generate sales and make money do not take their website down, especially one that is a B2B and B2C site (rather than just informational).
shrotker,
I agree with you completely and good luck in your efforts. I think it is time for Matin to put up or shut up.
Raw,
Investors can not take comfort that only 137K additional shares have been issued because with Matin you never know when he will dump millions of shares on the market. Why else put a gag order on the transfer agent unless you have dirty tricks up your sleeve.
I think he is truly trying to get an audit done, but his motive is to prop the share price so he can dump more shares on the market at a premium and not to communicate business
results to shareholders.
shrotker,
What bothers me about Textile creep (aka miamimice)is that he had always claimed that Matin did not own Veltex Textile mill in Bangledesh. And given Matin's effort prior to the reverse spit to pay 18Mil post reverse shares for the Veltex textile mill, there may have been some truth to his rantings.
jhawk,
You think the issue is really about whether he has a degree or not? You have missed the boat completely. The issue is about the fact that he LIED about his degree which speaks volumes about the character of the man!!!!
And it is as relevant today as it was yesterday, or last year, or 10 years ago because matin's character is the same today as it was yesterday, or last year, or 10 years ago.
I have only been in Veltex for 2 years and for the last two years I did not trade in and out (which was a mistake). I guess I was naive an believed Matin and his PRs (again, a mistake).
I think matin has a real company and not a shell, but there is no way to verify his claims of profitability and what he owns and does not own. I think he has intentionally lied, or at a minimum misled the investment community.
The thing that bothers me a great deal is the fact that he lied about his education (or presumably lied since no-one has been able to track down the infamous Asheville University in London England.). When a man lies about his education, that tells you a lot about the character of the man.
Now I am in this stock just to trade it on the swings between PRs.