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By this Thanksgiving (2013), it will have been more than a year since the news, which came out in November 2012, about hiring Sassetti, LLC (a major Chicago area accounting firm to prepare and structure the corporation's financial statements and issue accountant's reports in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants on behalf of Veltex Corporation).
It will be interesting where we'll be, as far as Veltex, by Thanksgiving 2013.
Encouraging News we've read as Current Management seems to be making a Strong Effort (i.e. Hiring Impressive Legal & Accounting Teams, Collection Efforts)
QUESTIONS:
1. Financial Reports/Tax Filings (Fully Compliant)- When?
2. DTC Suspension - Can CPA Firm and/or Law Firm End Suspension?
3. Settlement Amount - How much?
4. How often will Current Management keep Shareholders Updated?
5. What is the Fair Market Value of Veltex?
6. Is the Outstanding Shares Figure still around 40 Million?
7. Deferred Tax Asset - What Tax Rate used to Evaluate it?
8. Any Acquistion Candidates having their Eyes on Veltex?
a.) If yes, what is their Time Frame?
b.) If no acquistion candidates now, then when?
Current Management, and us Shareholders, have truly been victimized by the past, and Current Management, we feel, has been making Noble efforts on behalf of us shareholders to get us back to a much better situation. We just wish it didn't have to take so long and wish we knew how much longer it will take.
We just gotta have Hope, for now, and just Believe that One Day (hopefully soon), we'll be Free from all this Uncertainty.
Maybe, for now, to help us Cope and have Hope, we can post some points that we are Certain about, or feel is a Highly Likely Scenario (i.e. the over $100 Million Judgment awarded to Veltex, and what this means, as far as Shareholder Value)
Also, it would be interesting to share our thoughts about the following:
- When could we expect the whole DTC Suspension to be resolved?
- If Book Value is $2.50/share, how much is Fair Mkt Value?
- Any Merger/Acquisition in the works for Veltex?
- Where will we be in a year from now?
WHEN WILL WE SHAREHOLDERS RECEIVE ANY SORT OF PAYMENT, OR AT LEAST INFO THAT WILL BE IN THE FINANCIALS? (Pardon the Typo in last post - typed "AT LEASE", should be typed as "AT LEAST")
Hopefully, we'll get some encouraging news soon. We know that Current Management seems to be trying to get us all to a better place. We just wonder why we're not hearing anything for so long, and why it has to take so long to get answers about the DTC SUSPENSION of the Company.
Yes, it's been Frustrating for a Long Time. Especially, we keep on getting teased with bits of info about "Setttlements" with Defendants. We understand that Identities of Defendants that Settled are Confidential, BUT, what about AMOUNTS OF SETTLEMENTS and WHEN WILL WE SHAREHOLDERS RECEIVE ANY SORT OF PAYMENT OR AT LEASE INFO THAT WILL BE IN THE FINANCIALS?
Also, in June 2012 (over 8 Months ago), the Press Release mentions intentions to Resolve DTC Issues in the "NEAR FUTURE" and then in November 2012, the Press Release mentioned DTC Issues intended to be resolved in the "NEAR TERM".
(If DTC Issue not resolved by way of Accounting Firm, then hearing with the SEC - Would this be resolved in the LONG TERM, NOT NEAR FUTURE?)
We appreciate Current Management's efforts, it's just that we need more Disclosure and Certainty about where the Company is headed.
Where are we all going? (AND WHEN?)
Another year of uncertainty perhaps? Maybe by 2014, we'll know where we stand, as it seems that it's gonna be a long process.
The Press Release on June 11, 2012 stated "Veltex has also been working with two of the company's outside law firms to review the questions with Depository Trust. Veltex intends to have a resolution of those in the near future."
We waited for months after the June 2012 Press Release only to receive a Press Release on November 1, 2012 about Hiring the Foremost Accounting Firm, and intentions to have the DTC issue resolved in the "Near Term".
Does the Accounting Firm have Experience in Reinstating a company from the DTC Suspension?
What have the Attorneys been doing since June 2012 about the DTC Suspension? (In June 2012 the Press Release mentioned intention to resolve questions with Depository Trust in the "Near Future")
In June 2012 Press Release states "NEAR FUTURE", in November, the Press Release stated "NEAR TERM". Any progress between Press Releases. Any Progress between November 1, 2012 and NOW (FEBRUARY 2013?)
It's all just ONE BIG MYSTERY.
Hopefully, soon we'll get some update as to any progress with efforts to Reinstate Veltex to Trading AND any progress with Merger or Acquistion, if it's part of the Company's plans.
OPEN ITEM LIST:
DTC STATUS?
UPCOMING SHAREHOLDER MEETING?
COLLECTION EFFORTS?
FINANCIAL STATEMENTS?
MERGER/ACQUISITION POSSIBILITIES?
ANY CURRENT LITIGATION?
ANY SETTLEMENTS THAT CAN BE DISCLOSED? IF YES, WHEN?
(IF SETTLEMENT PARTIES CAN'T BE DISCLOSED, CAN AMOUNTS OF SETTLEMENTS BE DISCLOSED AT LEAST?)
WHEN WILL WE GET ANOTHER PRESS RELEASE?
Pual, good point. We agree that the part that reads: "IF the company attempts to move Veltex forward are being made" is definitely Crucial. Also, we'd really like to know WHEN we will see all the Hard Work pay off?
(Management and those Hired in this process have been enduring this ordeal for so long already - WHEN will we see it all come to fruition - and enjoy the "Fruits of our Labor"?)
It seems that we have NO DEFINITE ANSWERS as to WHEN.
WHEN will the DTC SUSPENSION be lifted?
WHEN will we be able to trade freely Veltex Stock?
WHEN will VELTEX have it's next Shareholder Meeting?
WHEN will VELTEX be sold or merge?
WHEN will all this VELTEX UNCERTAINTY be OVER?
In November we received the Press Release about the Accounting Firm being hired to resolve the DTC matter, and/or any other matters, relating to Financial Statement and Tax Preparation.
We can see that the Current Management is making efforts to get us all to a better place.
QUESTIONS:
Will Veltex Common Stock be Reinstated for Trading soon? If yes, when? If no, will it take a very long time (more than a few months, and possibly over a year or so) to get a hearing before the SEC?
Will there be a Shareholder Meeting in a few months from now? (maybe June, like last year?)
If there is a Shareholder Meeting in a few months, what issues would they be likely to vote on? (i.e. Attempts to Collect Judgment Award from Defendants, Possible Merger or Acquisition of Veltex, Buyback of Veltex Stock - would all these be dependent on the outcome of attempt(s) to get Vetex Stock Reinstated to trading?)
We're definitely going into an Exciting time IF attempts to move Veltex forward are being made.
We just need to know what PRIORITY LEVEL has the Accounting Firm given to getting the DTC issue resolved?
Any Veltex Forecasts for the New Year? Happy New Year!
(i.e. Any Expectations about DTC Suspension, Acquisition of Veltex, Collections of any Part of the Judgment?)
Even though, Per the last Press Release, it states that expectations are for the Near Term (or Near Future), our Confidence is Low because this has been dragging on for too long.
We know that this could take months to fix, right? Does it have to take that long? Can they get this done sooner than that?
Can anyone make contact with anyone at Veltex to get Clarification? (It doesn't seem that they answer the phone over there.)
The Recent Press Release was in November 2012. It's almost January 2013. Are they going to put this aside due to Tax Season? Or will this actually be a Priority? We have no idea. Does anyone here have any idea of the Priority Level that the Accounting Firm has placed on getting Veltex Reinstated for Trading?
Can we Estimate the Minimum Fair Market Value of Veltex based on the over $100 Million Judgment, if no Debt Collected, to be approximately $25 Million? (based on the Formula: $100 Million Uncollectible x .25 Tax Bracket = $25 Million) (Federal Tax Only, we didn't even consider State Tax Savings, if any, which would make an even Higher Value to be Estimated for Veltex Fair Market Value - Maybe another $3 Million or so to be added to Fair Market Value, Bringing it to a Total of $28 Million)
If Company's Fair Market Value is $28 Million, based on the above information, and a Buyer purchased Veltex at a 20% Discount, then Veltex could be sold for about $22 Million, right?
(Question: Could Veltex be worth Much More, due to some of the Debt possibly being able to be Collected? Maybe Millions of Dollars More?)
Well, maybe the Accountants hired, are waiting until a certain time after year end (12/31/2012) so that they can prepare the year end Financial Statements in the quest to resolve the DTC Suspension. Maybe we'll have something by March, or later, since the Accountants will be busy with Tax Season (nice excuse to delay even further, right?)
It wouldn't be surprising if they used the Tax Season excuse as a reason why they haven't resolved the DTC issue yet.
At this point we're not expecting anything soon, as it seems its just moving at a turtle's pace (very slow).
Management has accomplished a Great Deal of Good News, which we're all Thankful for, but we agree with you that it seems that it's just taking too long for the DTC Suspension to be resolved.
RE: THANKSGIVING - We wish to take this moment to say Thank You to the Current Management of Veltex for all their efforts in bringing Veltex back to life and giving us hope for the future of Veltex. Happy Thanksgiving to you and all your Families.
Gratzi - Gracias - Thank you - Danke - Merci - Toda - Arigatou - Kamsamnida - Mahalo - Xie Xie - Shokran - Chaylee Mamnoo'nam - Spaseebah
Where will we be by December 31, 2012? (i.e. Status of DTC Suspension?) If it's not resolved by year end, then how much longer after that can we expect the DTC Suspension to last?)
Bottom line questions:
1 a.) Can the Management of Veltex get the Chill Lifted?
b.) If yes, when? If no, then what happens to our shares if we can't get them transferred to a Self-Clearing Broker?
2. Will Management Update us on their Progress relating to the DTC Chill?
3. Does the Current Election Uncertainty have any impact on the actions taken by Veltex Management? (i.e. Corporate Tax Rate Issues, Obama vs. Romney affecting possible Evaluation of Veltex)
4. Will we get a Press Release that will give us Definite Answers as opposed to having words like "Veltex Intends to Resolve Issues" or "Near Future"?
We Believe that we are in a much better position with the Current Management as opposed to the Previous CEO. We just need more Clarification about the Status of the DTC SUSPENSION, Evaluation of the Tax Asset, and Possible Sale of Veltex.
Agreed, what's going on? Current Management are the Good Guys, it's just that we need some clarification about what efforts are being made to get VLXC back to Trading again.
Does anyone have any idea what's going on?
Please answer the following questions:
What happens next? When?
Can anyone here state the official reason why Veltex Stock has been Suspended from Trading by the DTC?
What is Veltex Management's Legal Team doing to Lift the Suspension?
What is the probability of the Stock to return to trading within the next 3 months? What if Veltex's Attorney(s) cannot get the Suspension Lifted?
If we can never Trade Veltex Stock, then is it as if the Stock is Dead?
Will Veltex ever return to Trading? (If yes, when?)
(Can anyone here buy or sell Veltex Stock? If yes, which Broker do you use?)
RE: Press Release dated 6/11/2012. Specifically the following statement:
"Veltex has also been working with two of the company's outside law firms to review the questions with Depository Trust. Veltex intends to have a resolution of those in the near future."
PR Newswire
Questions:
1. What is meant by "NEAR FUTURE"? (i.e. 6 Months or Less?)
2 What if the Attorneys of VELTEX are unable to resolve DTC Issue?
3. Is anyone able to Offer Advice about how to get the DTC Suspension lifted and get Veltex back to Trading at Higher Volumes?
4. Does the DTC Suspension have any affects on any possible Merger or Acquistion activity Veltex might be considering?
Does anyone here have a Forecast for VELTEX? (i.e. Sept. 30th, Dec. 31st)
Specifically, what are your Expectations about the DTC Suspension, Collection Efforts, Acquisition, and any Other Matters?
We agree. The Management issued a Press Release about the Shareholder Meeting and Stated Book Value at about $2.50/share back in June 2012, but when will we see the stock back to trading again?
With the Prestigious Law Firm that we have working for us, we'd expect something productive by now in regard to the DTC Suspension. Are they able to get the Suspension Lifted? IF YES, WHEN?
How many more MONTHS, or YEARS, will we have to wait to know the answer to the question? (WHEN will the DTC SUSPENSION be Lifted?)
We're curious to find out if there's anything to look forward to by the end of the 3rd Quarter 2012 (Sept. 30, 2012)
We read the link you sent. It seems to radiate optimism in that the SEC appears to be admonishing the DTC about it's need to have more certainty before deciding to Suspend Trading Services (a warning for the DTC to Not Pull the Trigger too fast) Do you agree?
But we just don't know the answer to the question, "Is Veltex going to take action soon in regard to the DTC Suspension?" If yes, when?
RE: State and Local Tax - Yes, we were wondering about that also, but just decided to go with a Conservative Estimate. The State and Local Tax added to it would add more value to the Deferred Tax Asset (i.e. 35% Federal Tax + 5% State Tax = 40%)
But, for now, let's just stick with the 35% Figure, to keep it as a Conservative Estimate. Even if it's 25%, we have a Good Scenario with what to look forward to.
Mikester, you made Good Point that Veltex might need time to prepare the books, to conform with GAAP. What is a reasonable estimate time of arrival for a Press Release communicating that type of information?
Here are some more questions: (for anyone that can answer)
1.) Is there any way we can get an estimate of when the DTC Suspension will End?
2a.) Any idea if Veltex will be acquired by another Company?
2b.) If Veltex will be Acquired, then When?
3a.) Will any part of the Judgment can be Collected?
3b.) If Part of Judgment can be Collected, When and How Much?
4.) Does Veltex have any other Assets in addition to the Deferred Tax Asset?
5.) Will Veltex Merge or be Acquired by another Company?
6.) What Formula will be used to Calculate Fair Mkt Value (FMV) of Veltex? (Some of Judgment might be Collected, right? Corporate Tax Rate = 25% or 35%? (i.e. Formula: [(Collected Judgment Debt) + (35% x Uncollected Judgment Debt)]/Shares Outstanding = FMV/share
RE: Time and Amount
Time
How long will it take for Various Issues to Be Resolved? (DTC Suspension, Possible Merger or Acquisition of Veltex) For example, will it be another Lengthy Process to get the Stock back to Trading?
Amount
How much will the Fair Market Value (NOT Book Value) be when the Issues get resolved finally?
July 2nd, we have now entered the Beginning of the 3rd Quarter 2012. It'll be interesting to see if there will be any significant progress in regard to VELTEX during the 3rd Quarter, July 1st thru Sept 30th 2012.
We'll see between now and 90 Days, if there is any significant news (i.e. DTC Suspension, Merger/Acquisition, etc...)
Does anyone here have any Predictions about where we'll be (Veltex Shareholders) by Sept. 30, 2012?
It's so True. The Management has much more at stake than we do. We are Fortunate to have the Current Management at the helm. They've worked diligently to get us where we are today (i.e. $102 Million Judgment).
They've come through for us and they most likely will again. We just need to have Faith and Patience. Management is on OUR SIDE. And, the System of Justice has done well for us also.
(Hopefully it won't be too long before we get answers about issues like DTC Suspension and Management's intentions for the Future of Veltex, such as a Merger or Acquisition, Collection of some of the Judgment, etc...)
Where will we Be in 1 Month from now? 2 Months? 3 Months?
How much Cash on Hand does VELTEX currently have?
Does VELTEX have OTHER ASSETS in addition to the $102 Million Judgment?
How much longer will it take for us to be able to Trade our Shares? (Any estimate at least?)
It'll be interesting if the Management is looking for a Buyer to Acquire Veltex?
Maybe they'll resolve the DTC Suspension so stock will be able to be traded AND many suckers might sell at the Current Price, 0.205 to 0.28, or a Price that would be much lower, such as 0.40, than what VLXC is worth. For example, IF Veltex could actually collect just $20 Million of the $102 Million Judgment, AND sell the rest of the Judgment amount for $20 Million THEN VLXC will be WORTH MORE than $1.00 per share.
IF VELTEX Collects some money from the Judgment, will VELTEX have to pay Tax on the Portion which it Collects?
These are EXCITING TIMES for VELTEX SHAREHOLDERS.
Would anyone here have an approximate idea as to how much of the $102 Million we can expect to be Collected?
Good Point that they may be trying to Collect some of the Judgment we are entitled to retrieve. This would put the VELTEX Stock Price at a Much Higher Level than I initially estimated based on the "Tax Asset Scenario" derived from all of the Tax Savings from the $100 Milliion being considered a Tax Asset.
QUESTIONS:
How much is Likely to be Collected? When?
When will the DTC Suspension End?
What is the likelihood of Stock Price going close to $2.50 (Book Value)? (Maybe Good Chance if Collection Amount is High Enough)
We owe a Special Thanks to the Current Management and Board Members for bringing us, Veltex Shareholders, to a Much Better Position.
Chiara, it would be interesting to know if anyone here went to the Shareholder Meeting and received any DEFINITE ANSWERS as to the following questions:
(1) EXACTLY WHEN the DTC SUSPENSION will be over?
(2) Possiblility of a Buyer of VELTEX?
(3) Realistic Estimation of the VALUE of VELTEX SHARES - NOT BOOK VALUE?
(WHY even discuss BOOK VALUE when NO COMPANY IS GOING TO BUY IT FOR anywhere near $2.50/per share, UNLESS they CAN COLLECT the OVER $100 MILLION from the DEFENDANTS per the JUDGMENT?)
We are Truly Thankful to the Management and Board of Directors for all their hard work for the last few years. We just need some REALISTIC ESTIMATIONS, and ACTUAL PROGRESS with REINSTATING VELTEX BACK TO TRADING.
BOTTOM LINE: The Company is WORTH Whatever the HIGHEST BIDDER WISHES TO PAY
The $2.50 per share is just the Book Value based on the $102 Million divided by about 38 Million Shares Outstanding.
Here, in my opinion, is a more REALISTIC VALUATION:
IF Veltex does not collect any of the $102 Million THEN the TAX ASSET SCENARIO comes into play. Specifically, an example of this would be best expressed by the following:
FORMULA: The approx. $100 Million Uncollectible x 30% Tax Rate = $30 Million Deferred Tax Asset (Please Note: the 30% Figures is merely an example for illustrative purposes. The Tax Rate could be more or less - the 30% Tax Rate is being used here as an Estimation of Federal and State Taxes)
From the "Tax Asset" Scenario above, the question thereby arises, "How much would another company be willing to pay Veltex to SAVE $30 Million in Tax Payments?"
HYPOTHETICAL ANSWER: Let's say a Company is willing to Pay $24 Million for the $30 Million Tax Asset (a 20% Discount),
THEN our ANSWER to what the MARKET VALUE PER SHARE is Approximately 0.63/per share ($24 Million Dollars/38 Million Shares) - This is Most Likely what another Company would BUY our Shares for - IF ALL OF THE OVER $100 IS UNCOLLECTIBLE, IF some of it can be Collected THEN VELTEX SHARES should be WORTH MUCH MORE.
Any chance for a Press Release soon? (i.e. Anything new announced at the Annual Shareholder meeting in addition to the Board Members being reelected?)
Did anyone get any questions answered? If yes, what questions were answered at the Annual Shareholder Meeting?
What's Next?
Agreed. It's Definitely a Good Thing that the Board holds a Strong Majority Percentage of Veltex Outstanding Stock. It means that they are Certainly working hard to do what's best for Veltex.
We are Fortunate to have this Board of Directors of Veltex.
How are you able to Trade your Stock? Which Broker in Canada do you use to Trade?
The Board Members of Veltex most likely won't give a Definite Answer about the DTC SUSPENSION at the Shareholder Meeting.
Don't get me wrong. I believe that the Current Management (Board Members of Veltex) are the Good Guys that improved our situation by bringing us to a much better position with the Recent Legal Victory. But why won't they (Veltex Board Members) make efforts to Lift the DTC SUSPENSION? It seems that they don't care about the DTC SUSPENSION, and they Maybe want to keep the status quo.
How much longer will we have to wait for Definite Answers via Press Releases?
I agree, What's Up? What's Next? Excellent Questions. That's all we really need to know. Thank you. (Are you going to the Shareholder Meeting? I was thinking about going, but, I don't feel that we'll get the answers we want at this time. It's just a Shareholder Meeting. Is the Company merely following the guidelines, maybe SEC requirements by having the Annual Shareholder Meeting? IF the Stock was able to be Traded and we knew the Book Value of the Company, and what plans the Company has for the Near Future, THEN it would be worth the trip to the Shareholder Meeting.)
Is there an INCENTIVE for the Board of Directors to NOT DO ANYTHING about the DTC SUSPENSION? (i.e. Board of Directors, with their possible Majority Percentage of the Outstanding Stock, have a Rubber Stamp to Propose Actions and Approve them)
It would be Nice to Meet with the Board at the Shareholder Meeting, I wish I could be there to say "Thank you for saving the Company - Good Job, we're in a much better position due to the Board Members' contributions to legal efforts which resulted in a major legal victory for all of us shareholders".
Just curious, what questions do you have for the Board Members and do you expect that they will be able to answer them?
Please, anyone here, let us know if you received the Proxy Material, and how you received it (i.e. Mail, or email, etc...). Will you be going to Chicago for the Annual Shareholder Meeting? What Topics will be discussed there, in addition to Voting for the Board Members? Any news of Potential Merger or Acquisition of Veltex? Any official Accountant's Appraisal of the Tax Asset based on the $100 Million Judgment?
These are exciting times for Veltex Shareholders.
IF President Obama gets Reelected and Increases the Corporate Tax Rate, THEN the Deferred Tax Asset would have an even Higher Value due to Higher Tax Savings.
When you stated in your post "final decision re our shares", were you referring to the possibility of Veltex being Acquired, Valuation of the Deferred Tax Asset, DTC Chill, or all of the above?
Anyway, with the over $100 Million Judgment in Favor of Veltex, we're in a much better position than we were before it happened. The over $100 Million in Losses is Definitely a Valuable Asset to any entity seeking to Reduce Taxable Income.
A Merger or Acquisition of Veltex would create a Great Mutual Benefit to Veltex and the other Company.
This is just the beginning. The Beginning of Something Beautiful!