Retired
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
One thing does surprise me (as if anything could with this guy).
For months now Matin has issued PR's (hardly NR's) the pps goes up somewhat (new people finding the deal of the century each time) and within days (hours) the PPS goes back down to $1.00 or so.
Why does Matin bother issuing these PR's one after the other putting out a story (net profit a $1/share) which obviously is not beleived by anyone, at a risk of getting arrested one of these days if it happen to be an outright lie ???
In the last year he claims he bought large assets and he did use claimed very undervalued shares to do it and he says he plans to do it again (unless he has enough cash not to use shares anymore ???).
One has to wonder what this guy has in mind and what logic (???) is behind it.
This is by far the funniest speculation I ever was involved with and IF Matin's claims were to be true (even somewhat) no one could ever say that he wasn't told.
???????????????????????????
These outfits covering small stocks are generally paid by the companies they cover and/or react to out of line volumes or PPS variation without asking the reasons behind them.
The best way to loose your bet is to follow their advices.
The following attracted the attention of someone who mentionned VLXC on another board this morning:
www.MarketGainer.com: Market Gainer Releases Profile for Veltex Corporation
Oct 24, 2005 (M2 PRESSWIRE via COMTEX) -- MarketGainer.com strives to find dynamic issues that are unknown but because of their technology, approach, executive team, recent discoveries or other key factors, could advance in the market. MarketGainer.com has identified the following company based on these criteria. Veltex Corporation (OTCPK:VLXC), through its subsidiary, Velvet Textile Mills, is acompany that engages in the production and distribution of specialized textiles for use by manufacturers of automobile interiors, furniture, and ready-to-wear garments. These materials include jacquard, denim, microfilament, velvet, twill, canvas, duck, and pinpoint oxford fabrics.
Company shareholders busily clustered to weave themselves into Veltex today. Shares traded at over double the normal volume, rising from the average of 61 thousand shares traded to 149 thousand. Prices reflected the influx, with a 21 cent or 22 percent rise over yesterday's close of 94 cents per share which produced the daily high of $1.20 per share.
The influx came shortly after Veltex announced its forward-looking estimates for 2006, stating that it expects continued successful growth with further advances in revenue and profitability. Veltex previously announced that 2005 gross revenues are projected to surpass $60 million with net income of between $9 and $10 million. The company currently has 9,732,087 shares outstanding with expected 2005 net earnings of $.92 - $1.02 per share.
Understandably, the company is indicating satisfaction with the cut of its financial cloth. Javeed Matin, CEO of Veltex Corporation stated that, "All of our divisions continue to grow at record levels and we have brought on many new distributors in the past few months. We are very proud of our rapid expansion and growth progress since 2001 when our total revenues were $8.7 million. We are committed to maximizing share valuations for our loyal shareholders and expect to announce further synergistic acquisitions in the future."
This is also my line of thinking.
Let's hope he owes close ones to let them profit from their investment (if they are close, they should know therefore would be investors where we only can speculate). Otherwise, our kids may be glad (???) we leave them some shares in an outfit they probably will never have heard from, after we left for a place where PPS doesn't mean anything.
Honestly, I have a hard time justifying a $2.50 PPS.
If all Matin issued is BS, the PPS should be less than $1.00
If what Matin released is true (expected 2005 net earnings of $.92 - $1.02 per share) and I only assume a multiplier of 10, then the PPS should be in the double digits or so.
If Matin exagerated somewhat or wasn't as precise as he should have been, the PPS should be less than $10.00 but for it to be $2.50, his "error ??? would have to be 75% off what he did release ???
Nice thinking.
However as we boyh know this and close to everything else is just speculation on our part, based on whatever Matin told us - true or not.
To end up the day on a nice note...
Try to imagine if Matin was behind closed doors (and silently for once) working with his lawyer and a credible auditing firm at setting up for normalization of the company ???
Even better, just assume that whatever Matin recently released is true ???
How much would our shares trade for, let's say 1 or 2 months after such events would have unfold ???
On that note, good nite and may you have great dreams !!!
LOL!
"I think virtually everyone has given up on the prospects of an audit and this stock is going to be damned to the pinks forever." ... unless Matin and/or large shareholders close to him expect to profit themselves from a PPS representing whatever it is they beleive the situation to be ???
How old is Matin?
I agree. However this is typical of Matin's way to communicate.
Bottom line this PR (certainly not NR) says:
"It's going great and it will be even better ... beleive me !"
My problem is that he said it so often (no one knows how true it is or not) that one starts to beleive that there must be some thruth behind it.
After all one can assume that effectively, some authorities have been informed of the questionnable way of Matin to manage a publicly held company and look at it gave it a look.
I have been told some time ago by someone that Matin was keeping his lawyer very busy but I do not know busy doing what. Whatever it is, it is not bad enough for Matin to just keep quiet and stop issuing Pr's such as the one which came out this morning.
No mention of any audit anymore.
May be this is a good news ???
For year he promissed them and never delivered in time or delivered some which created more questions than they gave answers.
Now that he doesn't mention them anymore, who knows, may be they will come out and be credible ???
Veltex Corporation Announces 2006 Guidance
CITY OF INDUSTRY, Calif., Oct 24, 2005 /PRNewswire-FirstCall via COMTEX/ -- Veltex Corporation (OTC: VLXC) today announced its forward-looking estimates for 2006. The Company expects to continue its successful growth trend with further good advances in revenue and profitability.
Veltex had previously announced that 2005 gross revenues are projected to surpass $60 million with net income of between $9 and $10 million. There are currently 9,732,087 shares outstanding with expected 2005 net earnings of $.92 - $1.02 per share.
Javeed Matin, CEO of Veltex Corporation commented, "All of our divisions continue to grow at record levels and we have brought on many new distributors in the past few months. We are very proud of our rapid expansion and growth progress since 2001 when our total revenues were $8.7 million. We are committed to maximizing share valuations for our loyal shareholders and expect to announce further synergistic acquisitions in the future."
Having followed Veltex for more than 6 years (staying away for a couple of years when Matin disappeared) I followed the RB board for a long time, up to when the current more healthy one came up.
If only 10% of what was written in there (and in here for a long time also) is true, SEC has dozens of complaints on Veltex and Matin and so do many more organisations and even politicians and miscelaneous associations.
The fact is, no one could ever point to any verifyable legal or other regulator's action against Veltex and/or Matin. To the best of my recollection I do not think the stock stopped trading for even an hour.
That's why, I beleive (but do no know) this "affair" to not be illegal.
I however also beleive the ridiculous situation we find ourselves in is the result of bad luck and mismanagement.
The 2002 synergy plan outlined by Matin ended up having him screwed by presumed good partners and a transport venture which got him in realy serious financial troubles.
Matin however did not yet drop the ball, most likely did, without saying it, moves which got him in deep trouble and tought he could pull out of it, given time (he probably still beleives just that).
Incompetence, mismanagement, inexperience, bad luck, ... are very likely.
Outright illegal actions by a crook conducting a scam ... I doubt it very much.
Welcome to the world of speculation (fear, uncertainty and doubts vs hopes, dreams and expectations).
Reality (great or bas) will hit us one of these whatever (days, weeks, months, years ???) and let's hope it will not be as bad and some do think even if not as great as some hope for.
Interesting ???
I wonder who got it posted on FreeRealTime then and why.
I assume that having this posted on there represents a cost to someone ???
Interesting ???
Just meant that for a newcomer this could look as if it was new fact.
Assume you hear about ABCco, try to do early DD, look for recent news and find:
"Enrollment in standards-based research is an important measure of a company's commitment to transparency and Good Governance.
David G. Tildesley, CFA, had been preparing a Focus report on the company, but after awaiting corporate information for its completion, it was decided that the company would instead be enrolled into an Investrend Broadcast webcast."
My original point was, why did someone think that it was important to pay to have that released right now, making it look as if it was a news?
That's all there was to it.
No spinning on my part. Just did put up a NR which showed up on FreeRealTime.
No one has to do any spinning to notice that the real financials behind our stocks are the best kept secret in town !!!
It's the same text I agree but someone decided it was time to use it once more.
The key info repeated in there is that Investrend wan't able either to get credible (if any) information from the company.
Interesting to know what John is doing. However I hope you do not assume any fallout for Veltex of John's public appearances.
It would be nice, excluding those reading our board, to know how many of the 350,000,000 North Americans do know of any link between John and Veltex?
For as much as I am concern, in relation with our PPS, anything being done by Veltex right now is as good as throwing water in a river.
Till Matin accepts to make Veltex a real publicly held company and to do what such companies normally do, nothing will help us.
I suspect that nice (I wouldn't say great) things are happening at Veltex but have no way of being allowed to expect that this will profit to us any time in the future.
I amm almost sure Matin has a critical informations he cannot share with the market, hides behind PR's that no one takes for thruth and is happy to just take whatever it is he pays himself, hoping that time will resolve whatever it is he has to hide.
VLXC is only a speculative Pinksheet stock and a nice toy for daytraders and MM'S.
This being said, I love Daly and like to see his career rebounding.
Let's hope that, as Daly did, Matin can resolve his problems and become successful again. Just one slight difference, I wish Daly's score to go down and Matin's PPS go up thru this ressucitation. LOL!
http://quotes.freerealtime.com/rt/frt/N?symbol=VLXC&art=C2005101900292r5760&SA=Latest%20News
Latest News
Veltex Corp Gains 16.09% On 1.8X Volume
Oct 19, 2005 (financialwire.net via COMTEX) -- October 19, 2005 (FinancialWire)
Veltex Corp (OTC: VLXC) gained 16.09% on volume of 118,664, which was almost
twice its average 63,009, to close at $1.01.
Veltex Corp. had enrolled in Investrend Research's unique and pioneering
professional analyst program, which facilitates independent analysts to provide
financial coverage for shareholders and investors in companies that otherwise
would have little or no analyst following. Enrollment in standards-based
research is an important measure of a company's commitment to transparency and
Good Governance.
Investrend Research analyst David G. Tildesley, CFA, had been preparing a Focus
report on the company, but after awaiting corporate information for its
completion, it was decided that the company would instead be enrolled into an
Investrend Broadcast webcast.
I had not seen a NR from Investrend since a long time (may be I just missed them) and this morning I find one ("Veltex Corp Gains 16.09% On 1.8X Volume").
As usual, the following statement is included:
"Investrend Research analyst David G. Tildesley, CFA, had been preparing a Focus report on the company, but after awaiting corporate information for its completion, it was decided that the company would instead be enrolled into an Investrend Broadcast webcast."
That's an old story but interesting that Investrend decided to remind us again right now.
"How can it be ..."
You can probaly start that way, 1,000,000 sentences related to Veltex.
The only interesting question remaining however is:
"Will Matin end up normalizing this company and when or are some hidden facts so critical that he will not be able to do it ever?"
All the rest for me right now is pure BS, rumors, dreams, desires,... (Hit me with an ace kind of behavior around a blackjack table).
Honestly guys, I never tell anyone anymore (for 2 years now) that I own these shares.
Only my broker knows but tries to forget and never mentions it.
My daughter knew because I bought her some at 0.01 (pre-split) and I sold them sometime ago at $ 2,96 when the price went up to $ 3.??. She tought she was investing and still beleives she did.
Whatever Veltex is or is not, what you and I want to beleive or not, we only can discuss what an proven unreliable source says, right or wrong.
The issue (in my mind at least) is we have financials (possibly right) of companies we cannot even know for sure we own or up to what point we do.
Till Matin accepts to manage this company as a real publicly held company, doubts will keep the PPS in the current range. You're never sure that financials do represent reality (enough scandals recently to render doubtful any shareholder) but in our case, everything we could say we know comes from a source which has hidden facts from us for years (Note that I didn't say "lied" since even that I couldn't affirm).
Wasn't it for a hidden fact Matin is stuck with (whatever it is) if Veltex was a $60,000,000 a year company generating profit of $10,000,000, of 2 things 1:
- Matin and his close one would buy back all shares they could put their hands on at current price and/or
- The most reputed auditting firm would audit this company 100% and issue a very detailled set of audited financials to be duly reported to SEC and the market.
Till then, we own HIGHLY SPECULATIVE shares and have reasons to beleive that our money is still at HIGH RISK and have justification to HOPE that the thruth lies between 10% and 100% of what Matin says.
10%: Current PPS would be justify assuming a profit of $1,000,000 per year and a multiplier of 10 or so,
100%: Suggested PPS of Matin ($ 10,000,000 profit) could be in the double digit figure.
Bottom line, I beleive (I repeat myself) that Matin did hide a highly significant fact to us some time ago, cannot admit it openly without risking legal problems, works at getting around them with his lawyers as soon as he can afford it and then, and only then, will he be able to issue financials we will be able to beleive even if they will seem hard to understand.
If any of what Matin says is thru, I hope this could happen sometime around the end of first quarter 2006 when a seriously audited set of financials (FY 2004 and FY2005) could be released.
Honestly, if by summer 2006 I haven't seen that, I personally could decide to may walk away with my money (hopefully) after 7 years of waiting and having fun debating the situation.
"SOMETHING FISHY IS STILL GOING ON!"
I do not often agree with you (tone bothers me more than content usually) but this conclusion very well fits what I baleive also.
The real question is what is this "SOMETHING" all about?
Beleive me I realy would like Matin's story to be 33% accurate or better.
This being said, I would not recommend this stock to anyone who want to do anything but gamble.
Honestly, I have a real hard time beleiving that money flow in by the millions and the market (INCLUDING THOSE KNOWING THE FACTS) still think the whole outfit to be worth less than $10,000,000.
I love reading Matin's PR's but I would not add 1 share to my 5,000 speculation.
Again: "The same old story with even nicer numbers".
1 time estimate EPS is unbeleivable (Market seems to only accept it at 10% (PPS of $1 instead of the $10 claimed to be justified by fundamentals).
Obviously, right or wrong, the market still doesn't beleive Matin who, for whatever reason, cannot afford to "normalize" the situation of a presumably great situation.
I keep suspecting that the explanation of this "mistery" resides in Bengladesh and is probably related to the ownership of this part of the business.
This being said, it's still a nice "speculation". Very likely not a pure scam (low risk), may offer a high return potential.
Would be nice to live close to the company. I certainly would try to learn more by visiting Matin personnally and discussing with employees.
We shall see (one of these days, weeks, months, hopefully not years) ???
One thing I now start to beleive:
Matin finally did figure out that issuing PR's to support our PPS doesn't work anymore.
From his past behavior however, I beleive he doesn't like to low a PPS.
If so, he may sooner or later figure out that issuing credible verifyable financials and duly reporting them could be THE way of securing a PPS reflecting the value of the company.
However between the moment he does accept this reality and can afford it, it shall take some months before serious auditors can sign on seriouly audited financials.
Hopefully this is already going on behind the scene but, honestly I do not hold my breath.
Your smile of the weekend:
Boudreaux 's Daughter
Boudreaux's 21-one-year-old, unmarried daughter tells her parents she
thinks she is expecting. Very worried, they go to the drugstore to buy a
pregnancy kit. The test result shows that the girl is pregnant.
Shouting, cursing, and crying, Boudreaux says, "Who 'dat pig what did
you like 'dis? I want to know!"
The girl picks up the phone and makes a call.
Half an hour later a Ferrari stops in front of Boudreaux's house. A
mature and distinguished man with gray hair, impeccably dressed in a
very expensive suit, steps out of the car and enters the house.
He sits in the living room with Boudreaux, the mother and the girl and
tells them, "Good morning, your daughter has informed me of the problem.
I can't marry her because of my personal family situation, but I'll take
responsibility.
"If a girl is born, I will bequeath her two retail stores, a townhouse,
a beach villa and a $1,000,000 bank account. If a boy is born, my legacy
will be a couple of factories and a $2,000,000 bank account. If it is
twins, a factory and $1,000,000 each. However, if there is a
miscarriage, what do you suggest I do?"
At this point, Boudreaux, who had remained silent, places a hand firmly
on the man's shoulder and tells him, "'Den you try agin!"
Yep! Long time since someone visited there!
Not only am I in East but uo North also!
This also a possibility and I respect your OPINION which, you are honest to admit, is based on no verifyable facts.
Still it's fun to debate opinions, having nothing else to debate.
One agreement: Matin is smart.
A combination of both is also a possibility.
Contrary to you, understanding we know as much, I beleive in nothing much right now. I only look at possibilities and hypothesises.
"my guess is it is by design".
100% in agreement.
My "hypothesis" is that the objective is to somehow, buy time
- to repair, hide or burry a mess that was enginneered in Bengladesh sometime in 2003 and
- to get back the required control of the company so Matin could legally implement a decision he wants to execute.
Selling the company could be one of the action he plans to take but who but him knows why he does what he does ... knowingly.
For a while I realy tought he was incompetent but now I think he is quite smart, made an error and works toward getting the train back on track so he can do whatever it is he wants to do, without getting in legal troubles.
A contact of mine told me (a few months ago) that a Matin's lawyer told him that Matin was keeping him real busy. However the lawyer did not mention on what (obviously).
342,000 shares trade and PPS drop by 6,9%.
If Matin did not understand that PR's are not helping hiPPS (and ours)?
On the other hand may be he did and got low price shares all day ???
Profit margin of 7.4%
Sales of $ 20,000,000 (4 quarters at $5,000,000)
10,000,000 O/S
Multiplier of 10
PPS of less than $1.00
These are the numbers we seem to be looking at, not knowing the accuracy of any.
However, if most of them were (no real way to know) the last one effectively would be quite on the low side.
"hold off your buy button for a while".
No intent to buy, do not worry. I got my cost to where it seems reasonnable (considering where I started from) and intend to wait for the outcome ... good or bad.
"From 13 million sales last qtr to $5 million sales this qtr, Matin is beyond not trustworthy...".
Effectively it looks real bad and may be it is. However (you may call that putting a positive spin on a negative fact) I would like to better understand where the $13 millions was coming from and where the $5,000,000 are.
One hypothesis (nothing more than a possibility one can or not consider) could be that Matin gradually shows USA based revenues and eliminate Bengladesh ones to gradually move toward the thruth which may be that we effectively lost our ownership in Bengladesh but are becoming successful in USA.
I know as much as anyone in here (i.e. not much) but, unless one realy beleives this to be a pure loss (then I wonder why he would have shares an be part of our board), looking at positive scenarios when negative ones are so easy to beleive, seems to be reasonnable.
This being said if I had never bet on this stock, I certainly would not do it now, the risk remaining what it has been for a long time and the reward being quite less attractive, even considering the herein "positive spin" I gave to the situation.
My way to look at it:
I have 21 (10,5 and 6),
The dealer had 12 and he just did turn a 2.
The dealer must pull another card ???
How much is my hand worth?
Will I win? (double my bet)
Will I have a push (take my money and walk or try again)
Will I loose the bet (also part of the game)
As I said this is not an investment. It's a bet or speculation and only money you can afford to loose should be on the table.
Best of LUCK to all and may the dealer pull the right cards before we leave the table.
Bring me a scotch!
One thing is for sure. If an insider wanted to have shares at low PPS, this morning PR was great.
Remember we still never figured out how Matin still can control the company. May be he (and close ones) needs shares and getting new ones may not be the best way to do it.
What do I know ???
"someone is dumping big time around $1."
Whoever expected a $5,$10 or $20 PPS whenever probably saw that this wasn't in the cards and left the table (selling 40,000 shares:
9:56:58 AM Trade 1.01 20150
9:56:50 AM Trade 1 20150
However someone having more realistic expectations (may be an insider knowing most than us) also bought them.
Let's face it, today's PR realy should have read:
"We cannot yet justify why we cannot behave normally but suffice to say that Veltex is neighter a scam nor the expected jackpot some are waiting for. This being said, beleive it or not, we still say that current PPS is lower than justified".
No numbers. Just read: "the company as it is, is worth more than $1" nothing less, nothing more.
Signed: someone having no credibility anyhow.
ASSUMING 10,000,000 O/S (Matin may now have enough cashflow not to have to issue new shares anymore) to justify current PPS of $1.00 (assuming a reasonnable multiplier of 10) all it takes would be a profit of $0.10/share or $1,000,000.
Lots of assumptions but at least one could be justified to beleive that the BET is still pretty secure even if the reward will not be as some optimists expected up to recently ($5, $10, $15).
Let's not be all negative.
"This is a most unprofessional PR."
It's, for as much as I am concerned eighter more nor less professional that previous ones.
"Profits seem to have dropped dramatically".
This could, as said earlier a step toward lining up the story on facts.
"Why not a single explanation of these matters?"
I personally beleive that no explanation is yet possible considering the Bengladesh situation. A significant change happenned in 2003, Matin did try to hide it hoping to resolve the issue rapidly, circumstances (transport) did not allow him to repair the situation silently and he now has to gradually introduce the impact of the mess (since he cannot or doesn't want to do a coming out on it)
Just my opinion.
"I am holding some shares unwillingly" If your cost is reasonnable and you can accept the risk, this may very well turnout not to be disastrous.
"If the real deal is as good as Martin implies, insiders should have been buying...." Personally I think they did but knowing the facts they also understood that there was no reasons to rush and push up the PPS.
Being LONG on this speculation and going all or nothing (I however do not beleive that nothing is probable) technicals are not realy my concern.
Best of luck to you.