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Last news (highly debated) was on Dec. 19th (Veltex Corporation Board of Directors Declares Dividend and Authorizes StockRepurchase Plan).
Thereafter PPS went right down to $0.92 (12/28).
Then suddenly this:
Date.........Close...Volume...Change....Change%
13h45 today..1.280...52,900...0.160....14.286%
01/09/06.....1.120...72,400...0.110....10.891%
01/06/06.....1.010...47,200...0.020....-1.942%
01/05/06.....1.030...16,800...0.010.....0.980%
One has to wonder what is realy going on and who is PLAYING the stock ???
I haven't seen the details for all day but by noon or so, the volume was made of a large number of small transactions ($1,000 or less).
I was wondering if MAY BE this could be explained by small shareholders selling to a Matin buying back shares.
This being said, any scenario we can imagine is possible and we realy have no way to know.
MAY BE some small investors were just buying shares from Matin or MAY BE whatever one wants to beleive ???
how did u find out about this stock?
For the one who did ask me this question (I am not a private member), I bought my first stock in 1999 as one of the stocks I bought in my speculative portfolio which is 5% of my total portfolio.
Doing research of opportunities to speculate, I found this stock and bought 4,000 shares at $0.43 (now 40 shares at $43.00 ... LOL).Veltex at the time seemed a good speculation and I just bought it. It then fell to nothing when Matin did disappear to Bengladesh and I started averaging down when Matin came back and the stock started to move again Bought 40,000 at $0.032 at the end of 2002 (now 400 shares at $ 3.20). I thereafter kept averaging down buying up to 500,000 in lot bought at less than $0.01, the largest purchased being 200,000 shares at $0.005 on November 9th 2003.
Only sold a couple of time at $3.60 (11/12/2004) and $1.93 (6/10/2005) and bought back below $1.00 thereafter.
My net cost (only 5,000 shares) is now below $1.00 and I intend to sit on them, beleiving this to still be a good SPECULATION.
Not a dreamer I do not beleive this to be worth $10.00 per share but a $2.50 PPS seems to be a possibility.
If it gets there without credibly audited financials AND a clarification of the Bengladesh ownersip, I intend to sell with hope to be able to buy back in later.
If the audit AND Bengladesh isuues do get resolved the I shall see.
VLXC is just a toy and doing pretty good in the market I do not loose any sleep over it. Just one of my speculetions part of 5% of my portfolio.
Living in Montreal, working in Quebec city, I do not think I will be able to make it in Toronto. In any case, I do not intend to spend any more money on this speculation of mine.
I feel (or may be even try to beleive) that whatever it is that makes Matin behave as he does, would not be explained to someone attending one of his show, even if one would be lucky enough to be able to discuss with him personally for some time.
Matin has to live with a hidden embarrassing (or worst) fact stopping him from doing what he knows has to be done (he has advisors)and till he can resolve this issue with an appearance of legality, nothing worthwhile will be done to render this stock an investment.
My hope is that some people close to him do own lots of shares (and/or options) they bouth (or received) expecting a great PPS and these people will help (or force) Matin resolve this situation or do a coming out relative to it.
This being said I do not hold my breath (just my shares).
Something (good or bad) may come out soon, later or much later.
We shall see.
Would love to but it's a little far from the snow I live in ...
Still here and hope 2006 will not be (related to VLXC) the same as 2005 ... 2004 ... 2003... 202 ...
As for the rest, Very healthy 2006 to you all!
Merry Christmas to all.
Hope the following does wok ???
http://holidays.blastcomm.com
Valid Hypothesis. However, my view is that these options do carry voting rights, are generally owned by Matin and this is how he keeps full control of the company, notwithstanding the number of shares he issued buying assets.
If so, Matin will may convert or exercise them but I very much doubt he would let go of them.
Just another hypothesis.
Considering we have no way to verify what realy is behind the stock (but Matin's PR's) our PPS can only fluctuate on rumors and wishfull thinking (one way or the other).
If Matin hasn't yet understood that then one has reason to walk away.
If he did understand but doesn't do the only possible right thing, then one shall realy get worried about what it is that stops him from behaving the right way.
Bottom line, Matin seems stuck between a rock and a hard place and he somehow will have to suffer to get out of it or get in real trouble with his large shareholders who accepted shares in return for assets expecting these shares to be more than toys for traders.
Whatever Matin did hide up to now will have to come out once and for all and my suspiscion is that the financials he does quote do include those of a business we cannot legally claim property of.
Matin most likely tries to get back some ownership he lost in the past or sell whatever we still own.
Unfortunately the other party (buyer or seller) understands that Matin is in deep trouble and therefore is in a position to offer terms Matin obviously doesn't want to accept.
Many around Matin should start to be quite frustrated with the man, particularly following the recent flop of Matin's attempt to get a better PPS for them.
The sh.t should soon hit the fan and development (good or bad) should soon (few weeks, may be months) come to light.
If you read my post you know I also rejected this 50% ridicylous idea.
This being said, IF CASH THERE IS (I assume buybacks do not come for free) the only way to signal it to an incredibly doubtful market is to show it (read: send some to shareholders and I mean few pennies per share).
As fot the warrant, my understanding was that Matin could not at this time abide by the rules regulating this type of dividend.
Finally, If Matin came around a week or two from now and told us he bouth back shares, i beleive his credibility would be as usual.
ONLY ONE WAY OUT OF THIS MESS: Show us (audit, report) or shut up (let rumors impact the PPS up and down for the pleasure of the traders).
Never mind a 50% of claimed profit being paid as a dividend.
I beleive that if Matin had simply announced a 5, 7.5 or 10 cents per share cash dividend payable rapidly and said that the BOD intends to review the situation later based on the evolution of the busines,
- The cash requirement would have been $ 500,000 to $1,000,000
- Even not beleiving the $1/share profit claimed, the market would have had reaso to beleive that cash there is
- Some level of credibility would have been acquired (not a luxury in this case) and
- The PPS would have gone from $1.50 to $2.00 instead of $1.50 to $1.00
Honestly, show me $1.50 again and I'm out (there is a limit to patience).
Hard to beleive that someone realy tought that the following message could make the PPS fly:
- We will send out 1 share for every share out there (Dillution?)
- We will buy back as many shares as we send out (Based on credibility, this obviously could not make it)
- Ho by the way, there are options out there (we will not tell you what and how many there are) but we will buy back 1,000,000 of them.
I wonder wnat the discussion was at the board meeting.
One (gee I am bad!!!) scenario however could have been planned (oh how vicious), there was a pre-board-meeting meeting.
Some members were stuck with shares which were going no where when they were expected them to go. If you cannot increase the PPS, reduce the cost...
Last week PR created a great sell opportunity to sell high,
This week PR created a great opportunity to buy back low,
Thereby people (in the know) were able to rapidly reduce their cost and may be even get a few dollars for their Chrismas shopping.
However everybody knows that such scenarios cannot be !!!
I wonder if Matin and his fellow board members expected that negative an answer from the market?
If not, they must be under shock and if so they obviously do not understand the game (or cannot afford to play it as it should).
All this trouble to come back to where we were 1 month ago ???
I wonder what their next move will be ???
Once more some bought at $1.50 to find out within hours that they lost 35% of their bets.
Not a trader by conviction, I seriously start to think about doing it ...
I also did talk to people who confirm that he is not a crook, he is a hard worker but he lacks understanding what is involved in managing a publicly held company and either doesn't listen to good advisor or gets influenced by bad ones.
That's why people around him come and go except for those agreeing with him.
This being said, I am also told that something (no one mentionned it but I suspect the Bengladesh ownership situation) renders appropriate audits almost impossible and unacceptable to reputed auditors unless the something is outlined clearly in the audit report. Matin, for whatever reason cannot accept to have this "something" divulged AT THE PRESENT TIME.
That why, I suggest that a business there is, claimed financials by Matin are including figures which should not be included but bottom line would be positive if reality was recognized, even if a fraction of what is being claimed.
This is right now an outright SPECULATION, not an investment and my SPECULATION is that right now Matin is building a business and probably generating a bottom line of around 10 or 15 cents per share, justifying current PPS.
Great profit are still possible IF SOMEHOW Matin, with time, succeed in resolving whatever problem I called something in an acceptable manner.
This is SPECULATION and unless one wants to speculate (long) on it, the alternatives is trading on the PPS movements or walking away altogether.
Many wondered last week who were the other board members.
Whoever they are, they obviously do not understand what issue they face.
A real credible company committing to deliver a dividend of 1,000,000 shares to his shareholders and at the same time committing to buyback 1,000,000 shares in open market could probably be well perceived by the market (one wonder why not send (in our case) 10 cents/share to shareholders on record ???).
Forgetting the options quicky in this morning release, the issue is that the news came from a non reporting company having no credibility whatesoever in the market.
Even if one buys that new shares will be sent (I will beleive it when I see them in my account) no one beleives that Matin will buyback 1,000,000 shares.
The good news of the day...
Matin will be able to buyback shares at a great price ???
Accepting that this is not an outright scam (but who realy knows) one wonders what this guy is up to ???
I do not know how much "we" pay him per year but it's way to much. It's obviously enough for him not to bother doing the right thing... assuming he figured out what the right thing is.
I think I could accept a 1 for 1 trade ... Matin for the bartender. LOL!
OT: We're not the only suckees in this world. LOL!
Chicago bar serves up $950 cocktail
CHICAGO (AFP) — A jeweler turned drink designer has made a splash in the Chicago bar scene with a new cocktail that costs a whopping $950.
Pete Gugni, a jeweler turned drink designer, stands behind his $950 "Ruby Red" creation.
By Jeff Haynes, AFP/Getty Images
The Ruby Red is a tangy mix of vodka, champagne, cognac, pomegranate liqueur and orange juice. And it comes complete with a 1-carat, grade-A ruby.
"We kind of were playing with an idea that someone could come in and have something to celebrate and remember the night by," said Pete Gugni, a manager at the trendy Reserve club in downtown Chicago.
Gugni said the club wanted to come up with something more memorable than opening a bottle of champagne.
"That's where the stone comes in — at the end of the night they can take it home."
Gugni spent a few years as a jeweler after he graduated from art school, but switched to managing a bar because he got bored sitting behind a desk all day.
He used his old connections to buy the cocktail gems wholesale, and says they can easily be turned into a ring, pendant or earrings.So far, he has sold three.
The first was to an out-of-town businessman who quietly ordered it for the woman sitting with him at a table.The next was a Reserve regular who bought one for his girlfriend.The third was an extravagant club promoter in his 20s who bought it to impress a first date.
The man made a big show of handing it to the woman and warned her to watch out for a surprise at the bottom of her martini glass."She was loving it," Gugni said. "All her friends were looking at it trying to see the stone."
How to make a "Ruby Red"
Stir together these ingredients (the gemstone is optional):
1.5 ounces Grey Goose L'Orange vodka
0.5 ounce Hpnotiq cognac
0.5 ounce orange juice
0.25 ounce Pama (pomegranate) liqueur
A splash Dom Perignon champagne
.
Coming up with a recipe for the drink took a lot of experimenting behind the bar with the club's servers acting as a test market."We wanted to use pomegranate because it's hitting a popular trend with the anti-oxidants, and orange is really good with that," Gugni explained.
Dom Perignon champagne added a certain 'je-ne-sais-quoi', while using the Grey Goose orange vodka brought a smooth and silky kick."It's not a really heavy or sweet drink. It's got more of a tart taste."Nobody has ordered the drink without the ruby yet.
Gugni figures he would charge around $120 or $130 for a gem-less Ruby Red, to cover the cost of uncorking the champagne. But even at that price, they won't get the whole bottle — they just get a splash.
Affirmation : I personnally do not beleive that Matin will effectively buyback 1,000,000 shares.
Question: How many options are out there and since when?
Affirmation: Matin is definitely not stupid.
Question: What is he up to?
Affirmation: 18 months ago, Matin wanted to issue a couple million shares to acquire something in Bengladesh we tought we already owned (A bunch of shareholders grouped together to stop him then)
Question: What do we own out there and how much will it be worth if sold (till then it's worthless if we cannot figure out accurate financials for it)
This "short" hypothesis to me is pure BS.
My suspiscion (what do I know?) is that Matin is trying to help some (close to him) who bought shares at high price expecting him to rapidly resolve whatever issue stops him from doing what HE KNOWS he has to do.
As for his attempt to have auditors endorse unverifyable financials I suspect (???)that the optimistic Matin tought that the Bengladesh issue could be resolved rapidly but once again underestimated the situation.
This being said, I love Matin's BOD meetings. Last year we found out that we did not own the Bengladesh business and now we find out that there are options out there we never knew existed.
Another 5 or 6 annual BOD and we may start to understant what is going on out ther ???
You may be right but the fact remains that "CREDIBILITY" of Matin is THE ISSUE.
One thing I figured out a long time ago, Matin is not stupid (whatever qualifier some may want to use).
On that basis, the question is: "Why doesn't Matin do whatever has to be done so he can become credible?"
Assuming he has an approporiate justification (I mentionned earlier one tought of mine) what could it be?
Based on what he said he numerous time to have some kind of audits performed and every time, we got "disclaimed", partial and meaningless reports, we had them very late every time we got some or not ay all in many instances.
If Matin is honest (why not try to beleive it) what in the world stops him from behaving as a normal leader of a successfull PUBLIC COMPANY.
You seem (my interpretation) to be very close to him and/or the company. Could be nice to hear your explanation of this apparently unjustifyable behavior ???
"high level of credibility ..." I would have written "any level of credibility".
Notwithstanding what Matin claims continuously, the market says that, based on what we can see (or imagine) the company is worth $15,000,000 or less.
How many company can release a news saying that a
-10% share dividend will be given,
- 10% of outstanding shares and 1,000,000 options will be bought back,
- financial targets will be met (including $1 profit per share)
- 10% growt is expected next year
- new acquisitions are in the plan
- potentially another dividend (cash this time) shall be given
and the PPS is down 30 minutes later ???
I wonder if Matin will ever figure out what he has to do ???
Unless ...
It may only be me and I may misunderstand, but the plan calls for a repurchase of 1,000,000 options.
How many options are out there, who owns them, do they carry voting rights and what is the exercisable PPS?
Is that giving us the answer to the question: How does Matin keep full control of the company?
Assuming everything to be as it sounds, the 10% stock dividend should represent more or less 1,000,000 shares which would be covered by a buyback program of 1,000,000 share.
If everything goes as planned, then we get 10% more shares and do not simultaneously get diluted... I think!
This being said, assuming all (or almost all) recent releases are accurate, I only can see one reason why Matin doesn't normalize the company: The Bengladesh operation is some kind of a pain in the neck and cannot be audited in a way allowing normal reporting to SEC.
All of that, assuming Matin's releases do not lie (which I am tempted to beleive but not yet beleiving for sure).
What other reason can one imagine to justify Matin to accept to own shares undervalued more or less 1 to 10 ???
GREAT NAME! MAY BE HE SHOULD RENAME HIMSELF "COMPLETELY OUT"!
There is another board related to Veltex on Raging Bull.
I haven't been there for months but to my recollection, you should enjoy the kind of discussions some have out there.
Even better, just go away, get lost and go to hell (watch the temperature and come back when it has frozen).
On the release, the stock went from $0.85 to $2.10 and I would bet a lot of shareholders dumped their shares for whatever profit they could get (millions of shares are out there at a cost of $1.00 or so.
Now the stock seems to have stabilized at aroud $1.40 and many are probably wondering what trick Matin is doing on us once more. We all waited (some as I for years) to see if this could not be a great speculation but got sisappointed every single time.
My bet is that before the end of the week some more people will at least reduce their position and the PPS may very well go down some more ($1.20 - $1.25). The others as I, will just sit on cheap shares (below $1) and wait for monday or hold to costly shares hoping for the best.
In any case, as usual, only Matin seems to know what is in the plan but I have been told that he is under pressure to help close ones who have expensive shares on hand.
This is a reason why I imagine that next monday release will not be bad but neighter will it be as great as I would love it to be.
For sure however, if Matin comes with a warrant-type dividend and cannot outline normally audited and reportable financials, I will seriously think of walking away. This to me, would mean the guy is realy not honest (I know ... some will say that they told us all along).
We shall see!
The BOD is friday and details should be announced monday. However, we have to remember that with this company, target dates are often only that ... targets .
CITY OF INDUSTRY, Calif., Dec 05, 2005 /PRNewswire-FirstCall via COMTEX/ -- Veltex Corporation (OTC: VLXC) today announced that it has scheduled a Board of Directors' meeting on December 16, 2005 to discuss terms of an initial shareholder dividend, as well as other important corporate matters. Details will be announced on December 19, 2005.
Since I have no intent to sell this week, I would prefer the PPS to stay more or less where it now is (+ or - $1.40).
Then if next monday (19th) news is not as good as we all hope for, we shall not feel to much pain going back down to more or less $1.00.
On the other hand, if the news is (are) good, it always will be time to look at the PPS go up with some kind of justification behind the move ...
This obviously if there is a NR next monday ???
"Dividend warrants for VLXC no doubt in my mind will be viewed negative in the market place."
I agree 100%.
If he comes out with that, I expect to see a $0.75 or less PPS very rapidly after December 19th.
Damages could be slightly less if Matin simultanuously announce a large share buyback to compensate for the warrants but considering his credibility in the market, I doubt it would have much impact.
George,
Thanks. tough to imagine there would be an interesting market for "call options" type of warrants but who knows?
However if market there was, I realy wonder what value our dividend would finally be worth in time?
In any case, we presumably only have to wait another 10 days to figure out what this was all about.
There seem to be some light at the end of the tunnel but we do not know how long the tunnel realy is and what's coming toward us.
George,
I do not remember if I was or not the first but, based on my own experience, I saw dividends being issued in 3 forms (may be there are other)- Cash, shares and/or warrants. I somehow assumed that shares were not very likely (without giving it more tought) therefore discussed cash and warrants.
No special knowledge on my part just another speculation.
Matin realy made some millage out of his PR:
Dec 7 2005 TwinTrader.com: Twin Trader Alerts for Wednesday, December 7, 2005 CHID, TKER, NWACQ, VLXC
Dec 6 2005 www.MarketGainer.com: Market Gainer Releases Coverage for Veltex Corporation
Dec 6 2005 Stockguru.com: Guru Alerts for Tuesday, December 6, 2005 ARGC, CWPC, CORG, VLXC.
Dec 6 2005 Veltex Corp Gains 90.22% On 11X Volume
Dec 5 2005 www.MarketGainer.com: Market Gainer Issues Coverage for Veltex Corporation
Dec 5 2005 Veltex Corporation Plans Dividend Distribution
A lot of visibility to a lot of potential new buyers !!!
My understanding is that a warrant could allow one (let's say owning 5,000 shares) to buy additionnal shares at a "presumably discounted price" (let's say in our case at $0.75) within a certain period of time (let's say during 2006).
If you do, you chip in more and sell right away (increasing offer) if there is demand at a price higher than $0.75 or keep them (averaging down).
However, unless a simultaneous share buyback is announced and executed, you are being diluted.
If by the end of 2006 (in our example) you did not exercise your warrants (buying shares at $0.75) then it dies by Dec.31st.
Not being an expert in the matter, I stand to be corrected.
This also has been my concern with the PR (see my post 10651 "By the way, assuming the dividend is effectively voted at the BOD and that it will come in the form of warrants, aren't they rules to abide by to issue them? Not that Matin seems to care a lot about rules but ..."). I however do not know if this concern is appropriate for a cash dividend but do not know.
My only hope is that (after all may be Santa Clauss realy exist) may be full disclosure lies in "Veltex Corporation announced a BOD to discuss "other important corporate matters" as I mentionned in post 10655.
This being said, it's business as usual... The last PR raised more questions than gave answers ...
By the way ...
"Now, who are the bag holders (deep in the hole) besides myself?"
I suspect a lot of people joined in, monday afternoon and yesterday morning, buying in at up to $2.10.
I hope the Dec 19th PR (may be even a NR) will help them (and us), if PR there is.
I bought my first few shares in 1999 (unbeleivable cost considering the R/S) and had the opportunity to average deep down when it look as alive again a few years later. I also made a quick out then back in when the stock went in the $3.50 range and this got me down to $0.91/share (only own 5,000).
Do not think I was bragging (I think how you say it in english) showing I was up considering that being up or down doesn't mean much unless you sell.
Had I written my post at $2.10 I would have look darn smart but if I had done it 3 days earlier I would have look a suckee.
All I am (in this situation) is a speculator having pulled out of deep sh.t during the last years, and hoping for the best in some kind of future.
Very honestly VLXC in my mind is anything but an investment. It's one of the few small penny stocks I hold in the speculative portion (5%) of my portfolio, most of them being the result of the crash of 2,000.
Agreeing 100% that "The fact of the matter is that we do not know anything that we can use to make an evaluation", "The fact of the matter is that we do know few things that we can use to make a speculation".
As an example, we know we never saw a credibly audited set of financials related to the Bengladesh operations. Another one, in August 2004 (my recollection) Matin did try to buy the portion we did not own of this operation after everyone tought that we already owned all of it.
This being said, you base your investment on whatever source you find credible but in my case, message boards are a nice hobby, not the source of information on which to base an investment.
So far I am about $0.54 for every dollar speculated her (my cost is 0.91. However by last weekend I was in the hole by $0.03 and monday up by $1.19 for a little while ... LOL
Naturally, out of the last NR, we focus on the dividend announcment. I however wonder if the significance of the NR did not realy come from: Veltex Corporation announced a BOD to discuss "other important corporate matters".
My line of thinking (presuming Matin to be an honest hard working person) is that something stops him from normalizing. I felt for a long time that the apparent impossibility to have credibly audited financials out of there, for whatever reason(s), could be THE show stopper that blocked him for years.
Wouldn't it be nice if one of the "other important corporate matters" was the approval of a solution to such an issue ???
Naturally this is assuming that the claims of the last couple of years do reflect somewhat the reality ???
You must be darn happy ...
It means you will not have to fly ...