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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!
We can be quite sure that the upcoming Veltex Shareholder Meeting on Friday June 8, 2012 at 10 AM will be a Very Positive Experience due to the Recent Press Release in March (the over 100 Million Dollar Judgment in Favor of Veltex Shareholders).
It'll be Very Exciting to meet fellow Shareholders and Current Management at the Luxurious Palmer House in Chicago (It's a Beautiful Hotel in the Heart of Downtown Chicago - A Great Venue for the Veltex Shareholder Meeting).
"We've come a long way" as the saying goes and it looks like that we can look forward to a Rewarding Experience.
"Happy Days are Here Again!" Come out and Join the Celebration in Chicago. (I will try to make it out there, as it's "Worth the Trip" - It'll be FUN)
What can be done to get the "Chill" lifted? If Chill doesn't get lifted, how can someone Buy or Sell shares? (i.e. Transfer Stock to Self-Clearing Broker)
It's interesting as we wonder what will happen next. Is there anything happening right now as a result of the judgment? Will the DTC Suspension ever be removed? If yes, when? Is anyone working on the DTC Suspension issue?
Also, it would be interesting to find out how many outside investors (Non-Board Members) hold at least 100K shares of Veltex stock each. How many shares are currently being held by Board Members?
RE: DTCC Chill
I am a Shareholder of VLXC (Veltex Corporation), which also has a DTCC Chill on it.
Can anyone here offer advice on how to get the DTC Chill lifted? The DTCC Suspension of VLXC I believe started in November 2010.
Below is Recent News for Veltex Corp. Stock Symbol: VLXC):
Veltex Corporation Awarded Damages on All Counts $102 Million Final Judgment Entered by US District Federal Court
Published: Wednesday, 28 Mar 2012 | 11:36 AM ET Text Size
CHICAGO, March 28, 2012 /PRNewswire via COMTEX/ -- Veltex Corporation-- OTC Markets symbol (VLXC) A Final Judgment was signed and entered yesterday by a United States District Court Judge in California. In one of the largest civil awards ever in the Central District of California, Chief US District Court Judge Audrey B. Collins entered the Order and terminated the case in favor of Veltex ("Veltex") a Chicago-based holding corporation, on all counts.
On March 10, 2010, Veltex's attorneys filed a 96-page federal complaint on behalf of Veltex Corporation in the United States District Court, Central District of California (Western Division - Los Angeles) entitled, Veltex Corporation vs. Javeed Azziz Matin et al, case number 2:10-cv-01746-ABC-PJW.
That case alleged damages from 22 individual and corporate defendants. The federal litigation outlined a massive fraudulent conveyance and transfer count wherein millions of dollars of corporate assets were stolen by the named defendants.
The amount of the final award exceeded $102 million in which $100,078,621 in fraudulent conveyance and transfer damages to the corporation was found. The Court further ordered $793,442.86 in prejudgment interest to be paid to Veltex.
The Court also ordered $2,005,172.42 in attorney's fees along with cost and expenses of $3,859.95 bringing the total amount of the award to $102,881,096.23.
The award will also carry post judgment interest annually as calculated by Federal rules. The Court also found certain defendants to be liable to Veltex both jointly and severally. The Court will retain jurisdiction over all other defendants who had previously settled with Veltex. Certain defendants had settled with Veltex under strict confidential settlement agreements.
Veltex retained the Los Angeles law firm of Blecher & Collins PC. to bring the complaint, on behalf of the corporation, in California federal court. Lead attorneys Maxwell M. Blecher, Maryann R. Marzano and Kristen M. Peters represented Veltex. Merle L. Royce of the Law Firm of Merle L. Royce was Chicago counsel in the matter for the corporation.
Veltex will update shareholders with developments as progress warrants. Copies of the litigation and court Orders can be found on the corporation's website at
Veltex Corporation, a Chicago-based holding corporation, maintains its corporate headquarters in Chicago, Illinois.
Pual, I clicked on the link you provided, but how did you get info that someone was trying to trade 3500 shares? You used the pronoun "her". Generally speaking how do we find out who's buying/selling? Are we all entitled to view this sort of info? If yes, and only if it's public info, how do we view it?
By the way, Pual do you have over 100k shares of Veltex Stock, and/or know other non-management shareholders that might have over 100k shares that are interested in getting the DTC Suspension Lifted?
Chiara, Thank you for your response. I have in the six-digits as well. Have you made efforts to ask DTC or Veltex Management about it? Is there any way we can get a group of us that represent a significant amount of interest in the Company to make a change to the current status, and Lift the Suspension?
I wonder how many shareholders, with 100k shares or more are tuned into this Forum. It would be possibly useful information if we can see if there is a significant amount of shares being represented here on Investorhub. Or if you know of any other Forum, let me know.
Does anyone here currently hold at least 100-200K shares of Veltex Stock? (If yes, are you at all concerned about the DTC Suspension? Would it be a good idea to get a group of us together to discuss how to get the DTC Suspension Lifted? Any ideas?)
If you hold less than 100K shares of Stock, would you be interested in some sort of action to be taken to Lift the DTC Suspension?
Sidenote: It would be interesting to know how many shares are represented here on this Forum, Investorshub? There doesn't seem to be any other website that has a discussion board about Veltex. If there is, it doesn't seem like it has gotten as much attention as Investorshub somehow.
QUESTIONS:
1. Can we expect any more Press Releases soon?
2. What is Status of Efforts to Lift DTC Suspension?
3. How long would it take to get DTC Suspension Lifted?
4. Is there Possible Acquistion or Merger?
5. If there were an Acquisition of Veltex, how would Shareholders get paid? (i.e. would the Acqiring Company make a Cash Purchase or a Stock Swap, or pay in installments?
6. Will there be a Shareholder Meeting soon?
Pual, you make good point about the Price Per Share (PPS). It would not be suprising based on the recent news, if the price goes up much higher than what it is now. With the Deferred Tax Asset Veltex has, the Share Price could easily go up to $1.00 Per Share or much higher than that. And that could be just the beginning. Market Makers are probably trying their best to keep the PPS down.
On the other hand, what happens next as far as the DTC Suspension? Will this take months to be resolved? Is Current Management interested in getting the Suspension Lifted? Brokers don't seem to care much, as their response is minimal.
Does anyone have a realistic forecast on any Current Issues (DTC Suspension, Possible Sale of Veltex)? Is the DTC Chill yet another issue that may take many months to resolve?
In Summary here are Questions we would like Answers to:
1. DTC Suspension - When will ALL OF US be able to Trade again?
2. Will Veltex be Sold soon? If yes, when? Sold for how much?
3. Are there any other issues that Veltex is working on now?
4. How and when will the Attorneys be Paid the $2 Million?
5. Do the Attorneys have to wait for Veltex to be sold?
6. Are any Buyers considering Acquiring Veltex now? Who?
7. Will Buyer implement a CASH PURCHASE of Veltex?
8. What will happen next? (just a General Question)
NOTE: We have no idea what is going on behind the scenes at the Company as Current Management adheres to Ethics policy of not disclosing until after Press Release. They merely explain what the Press Release says, but cannot answer anything about DTC, or selling Company, etc..
It looks like none of us here have the ability to get the DTC Suspension Lifted. And Brokers don't seem to be much responsive about it also. When asking them they simply respond with suggesting for us to contact DTC, but DTC has automated message saying that they don't communicate directly with investors (only with Brokers). It's a vicious circle.
Does Current Management of Veltex have any concern about the DTC Chill? Are they taking any actions about it? How long will it take to resolve this problem of investors not being able to trade VLXC? (It seems UNFAIR that some investors can trade while other investors can't trade VLXC.)
Can anyone give definite answers about the DTC Chill of VLXC? (i.e. When will the DTC Chill be lifted? Does Current Management Care about the DTC Chill? Is Current Management taking any actions to get the DTC Chill lifted? It seems that Brokers such as Etrade doesn't know what to do, or don't seem to care about the DTC Suspension of VLXC stock)
Can we transfer our shares from Etrade to Fidelity and be able to trade after the transfer? This is confusing. Can we transfer to UBS at this time and be able to trade if transferred from Etrade to UBS or Fidelity? Which one do we transfer shares to? You mentioned about someone having shares disappear. That's like money just being thrown away. He got the shares back, right? All cleared up?
What do you advise to get shares in Etrade able to trade? (transfer to where? Will the DTC eventually be lifted? If yes, when? Soon?)
Pual, you were able to trade VLXC? Do you have a Self-Clearing Broker, such as UBS? (or do you trade online with Fidelity, Ameritrade, or Etrade?)
Which Broker(s) do you suggest we use to be able to trade VLXC? (also is there a Broker we can use that has both, ability to trade VLXC and Online Trading ablility also?)
It doesn't seem that the Suspension of Trading by the DTCC will be Lifted soon. I've heard suggestions to Transfer the Stock to a Broker that would be able to Trade the Stock.
Any suggestions?
What's next for the Company? (i.e. Merger, Acquisition, DTCC Issue to Linger or Be Lifted?)
Does anyone here Trade with the Broker "UBS"? (Is it a Non-Discount, Non-Electronic Online Broker?)
Who was Buying/Selling on March 21? (Which Broker(s) did they use?)
When will all investors be able to trade, no matter which Broker? (When will DTCC Suspension be lifted?) DTCC has automated message instructing investors to speak to their Brokers. Brokers respond by saying that they don't know.
Can anyone help in getting the DTCC Suspension lifted? (Perhaps someone at Veltex)
Is it only UBS that is able to trade VLXC at this time? Any other Brokers?
When will DTC suspension be lifted for Fidelity, Etrade, Ameritrade, or other Brokers?
We don't have any Official Information yet (i.e. Press Release, and/or Court Documents) in regard to Court Activities (i.e. Proposed Orders, Judgments, etc...) or Tradeability of the Stock. Someone posting results about Court Activity without Supporting Material here might be trying to do good, but must understand that OFFICIAL SOURCE DOCUMENTS, or PRESS RELEASES, is what we really need.
Until we receive actual Press Releases about any Judgments and Tradeablility of the Stock, we seem to be stuck in a "Limbo State", without any idea about where we're actually going.
We need to see Actual Documentation from an OFFICIAL SOURCE (i.e. Court Documents stating Judgments made, and Press Releases from the Company).
Yes, we should be Thankful to Current Management for their dedication to Justice. We appreciate the sacrifices they'e been making for years now. We're fortunate to have shareholders serve as Current Management, as they step up and fight for us.
Current Management is Ethical. Current Management has not been informative about any details via Press Releases or via other Media (i.e. email or phone) because Current Management wishes to remain Ethical and not deliver information until it can all be confirmed and certified - they're doing the right thing.
If and when we receive a Press Release, we can be Confident that it is being communicated from an Ethical and Reliable Source, which is what Current Management is all about.
(It's been Frustrating, all this waiting around, but at least we know that Current Management are the Good Guys in this whole process)
Is anyone here familiar with any precedents set with other companies that fell into similar situation as Veltex? (i.e. DTCC Chill, Litigation, SEC Complaints)
Where does someone obtain information of Current Legal Status? (i.e. Official Court Documents of any Judgments made or expected to be made) We cannot be dependant on information from only Blogsite such as IHUB or others - as Sole Provider of Information.
In summary, we need Press Releases as a Guide. Current Management, it seems is only going to issue informantion that they're completely confident about, having supporting material.
Current Management, understandably, doesn't share any information with us at this time. This is probably the right thing, even though we have no idea what is happening right now.
We can only hope that this will be resolved soon.
Yes, good idea to sit and wait, since we already waited for so long already, and it seems that the Legal Efforts show that it's possible to revive the Company through recovery efforts.
Also good point that it could take weeks (or months). We have no choice but to wait and see, especially since it seems that we are unable to Trade the Stock at this time (at least in most Brokerage Accounts, right?)
QUESTIONS:
1. When will all Legal Work be completed?
2. Will Veltex receive any Judgment of Loss? How Much?
3. Will there be a Shareholder Meeting soon?
4. Will there be a Merger or Acquistion of Veltex?
5. When can shareholders Trade shares with any Broker?
These are interesting times for Veltex.
Yes, good points. This could actually take a long time to be resolved (i.e. Legal Process). It seems that we still can't even trade the stock yet (another Legal Process to get this done, right?)
We need Press Releases NOT rumors, or theories of any possible scenarios. We need actual news that informs us of all judgments.
Even if we get any favorable judgmets, it will probably take a long time to derive any actual benefit from it. Is the Company going to go for Merger or be Acquired eventually? How long will it take for all that to take place?
By taking legal actions and hiring attorneys, it seems that we are probably going in the right direction, and moving forward, even though it's a Slow Process.
In summary, we still might have a Long Road Ahead, but at least the Company is pursuing justice and recovery efforts for Shareholders.
RE: Veltexfine Day - This will be the day that we receive a Press Release informing us of Good News from Veltex (i.e. Legal Actions, Merger or Acquisition of Veltex, Stock being able to Trade, etc...)
Then we can all say "Happy Veltex-fine Day" because at that time Veltex will be "so fine", Veltex-Fine. It'll be a Veltex_Fine_Day .
Valentine's Day and Veltexfine Day.
Where did you read the info that states the March 1st "Proposed Final Order" Date? (Was there any other info included with it?)
What do you think will happen after March 1st?
We can't find anywhere that refers to a March 1st Date. How sure are you about March 1st being "Final Order"? And what happens after that?
Are we going to be updated in any way about Legal Proceedings and/or Agreements between Plaintiffs and Defendants?
When do we see any Press Release from Veltex to its Shareholders?
Is anybody able to Buy/Sell Shares at this time? If yes, what Broker(s) are able to Currenty Trade Veltex Stock?
Will there be an Acquisition of Veltex in the Future? (i.e. Standstill Agreement)
This is all confusing...where could we find info that states something about March 1st Final Order you mentioned?
This is the first time we're hearing about a March 1st Final Order Date. Are you sure about that March 1st Date? What are Chances of Veltex ever actually Collecting anything from any of the Defendants? (Even if there ever is a Judgment, or Agreement, will Veltex actually Collect any Money?)
What are chances of getting a Press Release soon after March 1st?
When will the DTCC Suspension of Trading Veltex Stock, if ever, be over?
What will happen with Standstill Agreement with possible Merger (or Acquisition) Candidate?