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JHAWK75,
One part to this is virtually certain a scam. The scam was clearly initial reported earnings.
They had at miminum to issue million of shares I believe to own what was claimed to have been 2004 income.
Maybe now there is a legit 6 million net income off roughly 7 million shares.
For this alone, normally a million lawsuits would have been filed if a normal company situation. I don't believe lawsuits accomplish anything. If the company does good going forward or not, losing investors just have to lick their wounds from previous misdealings.
sam
A pullback from $3.75 to $1.20 on initial press releases is far more profound than $2.80 to $2.00 as example. Of course with share increase, it is entirely understandable.
The only defense this company has is if earnings really are large and sustainable.
sam
George is right about technicals.
I am not into technical, but it has its place. Even if there was no board and you saw nothing questionable about the company just the technical movement on price versus the positive press release would be a huge warning indicator.
sam
Future prediction,
If Veltex is not a scam, going up.
If Veltex is a scam, in 12 months 20 cents/share or less. Also you may be never read a press release that essentially says "VELTEX IS A SCAM".
sam
Independent fear factors:
Underexplained or not explained rapid share increase.
Confusion over what is owned. Why did Matin say he wanted to buy mills with 18 Million shares?
sam
Growth and value,
I was waiting on a trigger to sell, being price rise to $1.80-$2.00 to get out or something else.
The something else for me was I sold my 2000 at start of trading after latest share count expansion reported by Rawnoc.
I plan to only repurchase if all questionable are satisfactorily answered. If they are answered as the optimistic hope, $3.00/share buy would not be unreasonable if the stock is for sell at that time at 3.
I hope everybody going forward makes money.
sam
TRUST WORTHY,
That is the end of story. The burden of proof as to trustworthy is up to the company. Nobody on this board can show the company is trustworthy. Wait and see if the company does.
sam
Symbol KCS,
Could I get opinions on that one? Is it better than average buy?
Thanks,
sam
Substitute the words increasing shares for dilution and re-ask the question.
sam
Simple question. If you were running a company would you do this pattern of dilution without immediate full disclosure as to what is going on?
Rawnoc himself said he has seen secret dilution work out for a company, but I am confident that 999 times out of a 1000 secret dilution is not justified at least continuously.
You can only justify being patient if you refuse to look critically at a company.
sam
Mcenulty,
When a company has a history of diluting plus a history of not ever making their actions crystal clear plus not ever having done filings, the only conservative route is to get out.
Even if Matin pulls a rabbit of a hat, does what he has promised, gets the stock to $10 a share, look at how it is right now, behind the scenes operations ie dilute, dilute some more month after month shows no respect in my opinion for shareholders.
sam
George,
Rawnoc has been the only one reporting, getting by calling the transfer agent. Others who tried had no luck, as often transfer agent office responds they can not reveal due to Veltex not wanting them to.
Rawnoc is credible because he first reported the increase from $2m range to $6m range while no one in the company seemed to want that to be known. Although he was attacked much on board his increase was correct as press releases later confirmed.
Sorry. You will have others go down in flames with you.
sam
Rawnoc,
That is too much dilution for anybody rational to ignore. Even if 2003 audit makes deadline, it will not have any addressing of the dilution. You are supposed to wait on hopes that another audit 1 month later can explain all 2004 dilution and maybe discuss 2005 dilution. Even a growing business can't keep up with explosive dilution.
sam
Texastex,
I knew of somebody on a message board when a stock kept going down who threw in the towel after years of disappointment who claimed to have put in a life savings of $786,000 on the stock of his dreams and ended up by with just $68,000.
You could make money here. You could lose money here.
sam
Texastex,
It is just as sad to lose money when a stock goes south as it is to lose out on missing when going north. Money is at stake either way.
Stay diversified and don't expect to get rich quick.
sam
Miamimice/OPTIMISTIC ONES,
If you are right about $25K KCA value, does not make sense to waste time with an auditor to me.
Bottom-line even if this is a profitable company and over all not a scam and a good audit is done, the odds are this is still not the smartest place to have much money, but sure 900% is within the realm of possibility (BUT NOT PROBABILITY).
sam
RED FLAGS,
It is fair to all to get a handle on the red flags.
This is all about the 2-sided debate on one issue: is veltex a scam or not a scam?
Neither side can prove which is true from what I can tell.
Here is my list of red flags not proofs of anything
:
1) rapid dilution - although may have been 1 time event, but may have been going on pretty quickly also for years, I don't know
2) lack of transparency on KCA purchase - completion mentioned twice but obviously not understood
3) during the time Rawnoc exposed there were over 6 million shares before company opened up - Matin in press release said
"no significant structural change to company" (obviously not true)
4. trucking fiasco (it is a red-flag when a long-time successful supposedly company deviates into something totally different and loses big)
5) Matin wants to purchase previously claimed owned mill and then following press releases appear to indicate mill is owned
These are solid red/yellow flags that warrant caution but prove nothing about whether a scam.
Any other red flags that come to mind of this nature that are I think beyond dispute?
sam
Pual,
Miamimice is either lying or Veltex is a scam.
I believe there is no escaping that one of the above has to be true.
If Veltex is a scam, it could still be better than what Miamimice believes it to be. I would say best case if Miamimice is telling truth would be something like $5 million revenue company, not $100 K which might be true but not best case.
sam
Texastex,Last Veltex related news releases say 6.6 million shares, news releases by veltex in Oct-Nov say 2 million shares
sam
96 million theoretically could have been well spent if as Pual indicated that it was never a valid potential $45 stock so was not really worth 96 million
sam
Veltex Bashers are I think either
1) former or current or would have been holders that are disappointed, who have turned sour on what they had perceived as a possibly good investment
honest in all cases, wrong possibly
2) miamimice, it is wrong, in my opinion, to believe he is lying. He could be, but also he could be a knight in shining armor that is being abused for telling truths.
If you think he is lying, just judge accordingly.
3) to think there are others just playing games on the message board for quick trades, maybe but I doubt it
sam
Texastex,
Press releases during the October-November timeframe said there was $7 million profit and 2 million shares outstanding. NO ifs and ands or buts were indicated in those press releases. No mention was made of an expected great increase in shares or some reason to suspect it.
sam
Pual,
Your statement that message boards have no value and are just for entertainment only is 100% false and ludicrous.
It may be true for you and some others, that is your business.
I will state my position. I thought scam was unlikely until Rawnoc first revealed the hidden share increase.
My current view is without a good audit, I will sell my remaining 2000 shares at $1.80 and overtime a lower price, ie no audit, horrible audit, etc..
Anybody objective knows longs were drawn in because press releases indicated a massive return was possible. Anytime you don't know an investment inside and out, there is a risk.
Otherwise everything you said is to be agreed with.
The more I observe you I credit Rawnoc with perceptiveness. You like to cast doubt on negative posts beyond pure objectiveness, but you are much more skilled than what obvious pumpers are.
sam
Texastex,
Since about Thanksgiving, the o/s share count has increased by almost 5,000,000 shares. If the press releases then were accurate there was $7 Million profit on 2 Million shares. At over $3+ earning a share on a consistently fast growing company then $45/share would be an expected target price conservatively.
Using 4.8 Million share increase on discount $45 to just $20 for purchasing power, the company spent in shares somewhere KCA? (20 * 4.8 = 96 million equivalent dollars)
What was worth $96 million dollars to us?
Think about it. This is not bashing. Looks to me like facts.
Maybe this is a winner, but this information is nothing to be happy about.
sam
Texastex,
Forget everything totally, if you can, said on the message boards. Go back and just look at press releases for past 18 months.
See if there is anything in your own opinion that you are not satisfied about. If you are comfortable with those press releases, then buy big.
sam
Texastex,
Most honest investors think this is probably a scam or could be a scam.
Some also feel sure that it is a scam.
There is absolutely no way in my opinion the stock would have this price if most did not think scam was a valid possibility.
The only really positive thing to be said is if the audits come out and look great to most people and then Matin says 2005 is looking good then if nobody has anything credibly bad to say about the audits, then this stock will justifiably rocket. This would mean audits address all the mysteries about what is owned and how shares have increased and demonstrate a thorough effort by auditors.
sam
I suggest if audit is not available by mar 22 start of trading then ask away.
sam
Looks fake the .08 basically. Could not buy at .009. Only allow 10000 at .010, another only 10000 at .011.
Are people worried about filing late? Doesn't seem like anything fundamentally wrong causing that.
sam
Shrotker,
What is your opinion of Matin's lawyer? Are you in agreement with Miamimice's views?
sam
Ann Tahim,
Growth and Value. I suggest you contacting her. Does anybody have her email address?
If you get a response from her via email, I would appreciate it forwarded to those interested.
sam
Not bad though if somebody was able to reward themselves $24000 every now and then.
sam
Miamimice/Growth Value,
I do not believe growth and value is an insider because he provided information on other stocks which makes him appear to me to be investor.
However, it is beyond my understanding how he could do so much research and yet be so trusting of Matin without an audit.
Why are you trusting the figures Growth Value? Maybe correct is a valid position. Definitely correct in my opinion is not a valid position.
sam
Growth and Value,
This stock is possibly worth a small bet - a reasoned position from Pual although he never I believe added to position in last 12 months.
My questions are
1) do you see it is better than that?
2) don't you feel there is plenty of reason to see this as above average risk compared to stocks in general?
sam
Since there is debate about what this business amounts to, does anybody feel like they understood clearly the trucking fiasco in terms of how it worked, revenue or in reality was it just a black box plus what Matin had to say.
sam
Thanks Miamimice- eom
To my knowledge the company I know with the most upside is CHAI otc, nobody pays attention to it, in final leg of pivotal trial (equivalent to phase 3)
sam
OT:
Does anybody think one should make a habit of printing/keeping periodically statements of one's brokerage account or think that would serve no purpose?
sam
MIAMIMICE,
Do you believe there are sales/revenue and to whom and how much?
sam
King/Growth and Value,
By now I don't recall what question you are answering of mine. Did Matin buy mill with his own money?
I think at this price a small position is reasonable, but only a small position. One thing is certain Matin is proven deceptive and supposed to have made bad decisions on trucking business. Also there has been too much past dilution to match to his operating of business. Also why was muzzle ever put on transfer agent, maybe temporary is okay but then he should open up, explain thoroughly the purchase history of KCA, give exact % ownership history for everything he claims to own, he can do that before audit and quit issuing pumps without adequate detail.
I was in Pact, sold too quick for small gain. I am in NWAU.
sam
Growth and Value,
There is an easy way for you to prove that you are probably legit if you are. Mention a few of the stocks you are in and why.
sam