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Veltex Corporation Expects Revenues in Excess of $40 Million for 2004 and is Entering the $6 Billion Surf Apparel Industry
CITY OF INDUSTRY, Calif., Dec 1, 2004 (PRNewswire-FirstCall via COMTEX) --
Veltex Corporation (Pink Sheets: VLXC) expects revenues for 2004 to be over $40
million with net profits of over $7 million or $3 a share. The company currently
has approximately 1.3 million shares in the float. Veltex plans on becoming
fully reporting and moving off the pink sheets to a major exchange upon
completion of its audits, which the company is currently undergoing.
Veltex Corporation plans to enter the $6 billion surf apparel industry. Using
similar business models as Roxy and Quicksilver, Veltex will create and design
apparel and accessories in order to establish itself in the surf apparel
marketplace. Javeed Matin, Chairman and CEO states, "Entering the surf apparel
industry offers great growth potential for Veltex. Even capturing a small
percentage of this $6 billion industry will significantly impact our bottom
line. We can offer customers a quality product at much lower prices than our
competitors."
Veltex also announces the expansion of its sales force. Vice President of Sales
and Marketing, Jordan Ross, expects to hire up to 50 new sales representatives
in the first quarter of 2005. The new sales representatives will primarily focus
on expanding Veltex's presence in the U.S. and making the Company a major player
in the promotional products industry.
Veltex expects its products will also be offered in major retail and department
stores in the first half of 2005. The Company will offer its own brand name
products as well as private label apparel and accessories. A new product line is
currently being created and designed to offer additional options in this market.
"We look to continue growing the company at increasing rates. Next year should
be an excellent year for Veltex as we establish our presence in the U.S. We are
taking numerous steps to make Veltex a world class apparel company," states
Javeed Matin.
Why would anyone criticize you for what you do with your money.
Personally I would not buy right now (neighter would I sell) but the fact is that $3.28 could be (20/20 insight) the worst or the bestn (or anything in between) move you did up to now.
However right now no one knows how much these shares are realy worth.
Very selfishly, I hope you made a great buy !!!
That's why I keep my expectations low regarding knowledge of how O/S are currently out there.
IF (a big one as usual) we get a FY2003 cdredibly audited set of financials and IF it reflects a situation as the one previously claimed by the company, then we will have quite a better understanding of what this company could be about.
One of the thing that could also be clarified (assuming a good audit is produced) is the cloud related to the ownership of Veltex Mills, following the recent stupidity Matin did.
Tough to beleive that financials would show figures of facilities we do not realy owned at the end of 2003.
Thereafter, the other reports you allude to and the number of O/S currently out, will be answers we will need to better understand where we realy stand.
Since we never had anything we could realy rely on with this stock, a FY2003 audited financial would be quite a step ahead in my view.
Not dreaming, just hoping.
To be honest, the number of O/S right now is not my main preoccupation.
What I want to know on a priority basis is: "Will the audit, if audit there is, confirm that the numbers we saw are accurate and representative of what we realy own?"
Thereafter, I will want to know how many shares are out there.
As I said earlier:
- If financials claimed by the company are real and
- If we own the Bingladesh facility
A potential profit of $ 7,000,000 for 2004 would justify current PPS:
- assuming a multiplier of 10
- assuming even 20,000,000 O/S
($7,000,000/20,000,000) X 10 = $ 3.50.
I do not say I would then be happy, I just say I would be less unhappy than I've been for over 5 years.
At least, selling at $3.50 would still represent quite a nice profit even if I would much prefer selling at $35.
In any case, if we do not see a credibly audited set of FY2003 financials and a reporting process initiated within the next month, we may have to rapidly dump our shares for whatever we can get (anything above $1.00 would be better than nothing ... for mee at least).
Who cares ...
Looking at recent volumes, I think one may conclude that Matin is not dumping to many new shares in the market right now ... notwithstanding how many are out there to start with.
Not that good for my Canadian "exporters" stocks however. I assume that this is what your government realy wants.
This being said, I still do quite good in this market having a couple of great stocks in there.
Additionally, a growing Canadian dollar, reduces the effective book value of my American stocks ... for the moment at least.
Many variables to plan around these days.
On that Basis, I have to assume that Canada is in USA (With Alaska up North) ... Hi! Hi1 Hi!
Even better, your President will be in Ottaw and Halifax for the next 2 days (Unfortunately I suspect that it will create more than suitable troubles up here).
It was released all over the place (FreeRealTime.com, CBS Market watch, WallSt.net, ...) but UNFORTUNATELY (for whatever reason ???) it was hidden in a press relese issued monday the 22nd, titled "Veltex Corporation Announces Expectations of Over $1 Million in Revenue from Trade Show".
This title not attracting everyone (many read the title and told themselves: "So what?" and went to the next subject they could be interested in).
Therefore, I suspect that some shareholders (hopefully ... and apparently few), unaware of the advice that a delay occured, tought that Matin ONCE MORE was manipulating us for reasons of is, we can only imagine.
Apparently the EXCUSE is that they were so busy with last week show that they hadn't had time to work with the auditors to finalize the report ???
This is pretty Mickey mouse to me but, AS USUAL, we wait or quit depending if you worry or not for your actual book value and your evaluation of the downward risk vs upward potential.
Nothing new. If you have been around long enough, you must now start to be used to such a stupid behavior (unless you want to beleive that it has a reason justifying it ???
A GREAT Thanksgiving to all americans herein!
Real nice for you.
I had it on my radar for months, chickenned out of throwing in a few $$$ and now would like to go back in time somewhat.
However I also dod chichenout for months whent it was more like in the $0.60 range.
Have a nice ride on it ...
Looking at both (VLXC and NWAU, it presents the same risk. All you know is what the CEO wants to make you beleive. Both also promisse to report soon.
Capitalization of NWAU is ($0.38 X 8,500,000 shares) $ 3,230,000 whereas VLXC's is ($3.55 X 2,000,000 shares) $ $7,100,000.
Multiplier seems to be ($0.38/$0.30) 1.27 in the case of NWAU and ($3.55/$3.00+) 1.18- in the case of VLXC.
NWAU: 52 weeks low: $0.13, high $0.54 (4.15:1)
VLXC: (no source since the R/S) my recollection is: low of $0.65 (0.0065) and $3.90 (6:1)
Not much possible in term of DD but effectively both seem to present the same kind of opportunity and risk.
As for the reputation of the CEO, my understanding is that NWAU's has only been on board since recently (???)
Finally, The followings do raise a question with me.
NWAU: "Navicom Inc. began operating with positive cash-flow during the 3rd quarter of 2004. In addition, Navicom is projecting the 4th quarter of 2004 will be its first profitable quarter in more than two years."
VLXC: According to what is being said, it's been continuously profitable for 5 years or so.
I think both are nice toys to speculate on (if that's your game ... not mine)
Best of luck.
1- It's business as usual with Matin
2- If it's the only one, we are in for a great Chrismas period
3- I would not be surprised if right after Mid-December another news release would say that a decision has been made to produve both 2003 and 2004 audited financials at the same time (Q1 - 2005)
4- Who realy knows what to think ??? It's even possible that Matin is lying continuously not knowing how to pull out of the false informations he released up to now.
The only thing we know is that a Veltex there is and a business is being operated. What and how much ??? Who knows ???
For the moment at least, there seems to be buyers out there beleiving that $ 3.50/share or so is a good "speculation" or "bet". Only knowing what we know, they certainly do not make an "investment" ... Unless these buyers are few knowing more than us ???
Our shares can be worth between $1.50 and $35 depending on what Matin does or not.
In my view current downward risk is about $ 2.00/share (Longs herein should have a cost of $1.00/share or less)and upward potential in more like $30/share.
For the moment, optimism, realism and pessimism are the only possible justifications of decisions to Buy, Hold or sell.
IF (a big one):
BEST CASE
1- There effectively is only 2,000,000 O/S out there (???)
2- We effectively own 100% of Veltex Mills, therefore KCA (???)
3- Credibly audited 2003 financials will be released sometime next month
4- These are reported to SEC thereafter
5- Credible audited 2004 financials are produced early next year AND confirm currently quoted numbers.
6- Veltex gets listed on AMEX within first half of 2005
Then our shares could easyly be worth ($ 3.50 profit/share and multiplier of 10) $35.00/shares (???) mid-2005.(Capitalization = $ 70,000,000)
POSSIBLE INTERMEDIATE CASE
1- There is 12,000,000 O/S out there. 10,000,000 new shares (current PPS justifies less than the previously mentionned 18,000,000) were issued to buy Veltex Mills.
2- We thereafter own 100% of Veltex Mills, therefore KCA (???)
3- Credibly audited 2003 financials will be released sometime next month
4- These are reported to SEC thereafter
5- Credible audited 2004 financials are produced early next year AND confirm currently quoted numbers.
6- Veltex gets listed on AMEX within first half of 2005
Then our shares could easyly be worth ($ 0.55profit/share and multiplier of 10) $5.50/shares (???)
WORST CASE (My opinion only)
1- Notwithstanding the number of O/S
2- There is no audit reported in December (therefore no reporting and no listing on AMEX)
3- Matin maintains his current stories (that the market has to give blind faith to)
Then (I beleive that there is an operation being built in USA with a certain success) our shares would remain a toy for traders and MM's and our PPS would vary with the desire of Market Manipulators, out of a base PPS of more or les $ 1.50.
Veltex is currently undergoing its 2003 audit and it is expected to be completed
in December. The Company then plans on becoming fully reporting and looks to be
listed on the American Stock Exchange (AMEX). Full year 2004 financial
statements will be audited early next year. Veltex expects to exceed $7 million
in net income or over $3 per share for 2004. Revenue is expected to exceed $40
million for this year.
1- "expected to be completed in December". As usual, Matin keeps everyone in doubt and, considering his current credibility, he certainly doesn't help the PPS. This being said he once more reiterate that an audit is in the works. Some will beleive this new (less specific) target date, some will use this delay to affirm that no audit is coming within a forseeable future. The fact is that all we got is Matin's claim which justifyably can be taken with a grain of salt.
2- "Veltex expects to exceed $7 million in net income or over $3 per share for 2004." If you beleive that it means that Veltex has issued no additional shares since the R/S. IF so, considering known information (Matin was looking for funding in return for shares, he attempted to issue 18,000,000 shares to buy Veltex Mills,...) something important must have changed the plans. I wonder what it could be if this is effectively the case. The only thing I could "imagine" (trying very hard) would be the new Tax agreement between USA and Bingladesh ???
Overall impression, IF honest and competent, Matin is a pretty sloppy CEO in his communications and investors relations activities. Secondly, presumably sitting on one of the greatest business success of the year, he keeps frustrating his shareholders (in total darkness) and partners (presumably knowing much more than we do.
I certainly do not claim the overall story to only be BS but I realy do not like the smell of this.
However, having waited that long, I plan to stick around and see what will happen, keeping most of my shares (may be even all).
However, contrary to what we saw at the end of October, current (lower than then) volume seems to be made of many small transactions.
If some happen to know something justifying accumulation, I suspect they accumulated 3 weeks ago.
In any case by this time next week, we should have found out some more ... one way or the other.
Some explanations I can imagine are:
He had options (do not ask me how ???) and these were allowed to vote ???
OR
He lied to you saying he did not buy shares
OR
He has a silent partner owning shares which he effectively control.
Whatever the case, I think he somehow effectively control the shop.
The good news (IF this is) is that somehow, someday he will want to see his shares effectively represent what they're worth.
Yes and No.
What I say is:
1- IF "all the info we have been receiving is correct in the audit",
AND
2- IF the alluded plan to buy whatever portion it is we did not yet own of Veltex Mills, using as mentionned earlier 18,000,000 shares,
AND
3- IF Matin did issue a few million shares to obtain short term financing
THEN
"the pps is only justified to be the current $3.00"
I was trying to see the impact of most possibilities we debeted recently, ACCOUNTING for the potential good news and DISCOUNTING for the possible bad news an audit could reveal.
Kind of trying to figure out the downward risk IF the audit comes out.
As I often said, the key to our future is the audit being produced in time.
However I also am very preoccupied by recent attempt by Matin to buy Veltex Mills (or whatever portion we would not own), issuing 18,000,000 new shares.
Then, assuming the audit comes out and worst case thereafter, we learn that Matin somehow did or annouces that he has or will proceed with this plan.
Then we could find out that, between 20,000,000 and 25,000,000 share are or soon will be the number of O/S (let's say 22,500,000.
Let's then assume that the company (including Veltex Mills)effectively is on the way to a $7,000,000 profit for the year.
That's a $0.30/share profit.
Applying a multiple of 10, current PPS at $3 or so would then be justified but much larger PPS would have to wait.
I then manage my level of expectation by positively assume that an audit (2003) will confirm what was saidd earlier, negatively assume that Matin lied and has to issue shares to correct his lie (we owned 100% of Veltex Mills).
Putting my positive hat, I accept that Veltex (all of it) effectively will generate a profit of $ 7,000,000 in 2004. Adding my negative hat again, I consider 22,500,000 O/S.
I yet have to find out about all these assumptions but consider that the current PPS may be justified after all.
We soon shall get at least some answers ... unless Matin did put his foot in his mouth (or up our as.) once more.
Since the beginning of the month (12 trading days) more or less 1,000,000 shares were traded (I presume it includes many which were traded multiple time.
PPS went to a low of $2.00 (Nov 1) to a high of $3.90 (Nov 12).
I beleive that traders and MM's were quite active, most sat on their shares which were accumulated earlier (i suspect few accumulated in October), waiting to see if we will or not get the promissed audit in due time.
JMHO
You certainly can beleive that I wish you're right.
I sincerely hope you are right. I however remain suspicious and remain open to any outcome. With Matin we never know what new ways he will find to keep us in the dark even when he seems to shed some light on the situation.
Why in the world did Matin include this stupid (or was it) resolution (Buying Veltex Mills) in the items to be approved at the last BOD?
This guy is realy playing with the nerves of anyone (but traders and MM's) holding shares in this company.
Let's see what the light at the end of the tunnel is all about, praying that it's not a train but effectively our way out from darkness.
To be honest, it has to be said that the last time Matin promissed an audit (I think it was last December) he effectively delivered an audit (sometime ine January 2004) issued by Anne Tahim (FY's 2001 & 2002).
Unfortunately, 99% of the reported financials were audited (???) by an unnamed firm and all Anne Tahim did was to copy as received from the company. By the way, Anne Tahim thereafter severed her relationship with Veltex.
Since then, Matin did try to pass a resolution hinting that, contrary to all he said in the past, we may not yet own all of Veltex Mills?
If audit we get this year, I hope it will be more serious.
You're absolutely right but with the history behind Matin, he cannot afford to slip without creating a lot of concern with his shareholders.
Personally, I would remain in (I have gone thru many of these negatives periods) but I think many would dump their shares if by 4 o'clock on the 25th, Matin hasn't delivered.
Personally, IF Matin effectively plan to release audited financials, I suspect that he will do it on the 24th after closing. But that is "IF" again ???
May God and Matin hear you, but let's first see if we have the promissed audit in the next 9 days before we get excited ...
If you beleive what was released by Matin, he had plenty of accumulated profits in Bingladesh but didn't want to use it to grow his American operation (high level of taxation implied in taking Bingladesh funds into USA). This however is IF Veltex Mills is 100% own by Veltex corp ... As you know, we have reason to question that for the moment.
Considering he was a pinksheet, unaudited, non-reporting company having no real assets to put as garanty, he obviously had no access to institutional fundings or loans therefore had ti issue shares to finance the buildup of his American company (of which we know nothing but it participates in a lot of business shows).
This being said "ASSUMING" there are only 2,000,000 shares outstanding, even at current PPS this only means a capitalization of $7,000,000. Not much IF what has been released is only half true.
IF all of the above is true, we are in very good shape looking ahead.
However, the story is full of "IF's" and "ASSUMING's" and the fact of the matter is that we realy are sure of nothing with this stock.
That's why it does remain a SPECULATION (not an investment) offering great potential but at high risk (Great toy for traders as, I do not doubt it), you very well understand).
Within a couple of weeks, I expect that some of us will be very happy and others very unhappy (even realy mad) if Matin does or not follow thru on his most recent commitment.
However history doesn't justify optimism at this point in time, I would even say it justifies great justified doubts.
We (soon) shall see ... once more !!!
IF:
1- An audited set of financials (2003) is effectively released within the next 2 weeks,
2- These do confirm that the past released of financials were almost accurate,
3- Matin confirm his intent to get listed on a real board,
Then $ 10/share is possible ...
IF:
4- The number of O/S hasn't gone through the roof (I doubt that)
5- We effectively own Veltex Mills.
To answer your specific question: Only Matin (and probably few insiders) know where this stock may be on December 1.
You have guts...
Best of luck (or is oy Breack a leg???)
Talking about visiting, I think it would be interesting to have someone visiting Veltex at The International Hotel,
Motel, & Restaurant Show in New York City.
As I said, I have no clue right now if this is a great SPECULATION or not.
Assuming I pump the stock shows a certain byass on your part.
Good trading tomorrow .... Ho sh.t it'today.
12.45 AM. I go to bed.
Enjoyed the exchange.
Good night.
I wish you a great visit and look forward to your report. (It better be before month end, otherwise, depending if an audit will have been released or not, this report may be totally useless.
Oups! Are you getting mad now???
Could it be that you didn't expect being chalenged as you may be used to on your other boards?
I wonder if you did not short the stock recently?
If you followed the board, you know I have no clue if Veltex is an illusion or the greatest thing since sliced bread.
This being said, your described visit sounded pretty foolish and considering your "game", seeding doubts and/or claiming you're in the know affirmatively is something the old shareholders herein have learn to be very relunctant with.
You are allowed to your opinion as anyone in here and these should be respected by all.
However your smooth hinting that you SAW things that tend to confirm the negative views of some on the company is as bad as the posts of some saying thet KNOW something we do not proving that Veltex is as great as the PR"s say.
The fact is noone in her does Know. We only can wonder.
The following is one of thereasons why I do not trust anything you write herein.
I love to debate but I also understand what the motivation of daytraders is.
At least in your case we know you are one (That I beleive ... or should i ???)
Profile for Rawnoc:
Job/Title: Full time day trader.
"I can describe in detail things I saw (pictures) that can easily be verfifed, or not" related to the Bingladesh plant.
So what and who would honestly change his mind one way or the other based on such a post on a message board.
As for your visit ... Why would anyone beleive your findings more than those of the person that visited the site 11 months ago? (see previous posts).
As you know, I had numerous exchanges with Victoria and as many (the tast one being Paul of E&E) she was discouraged by Matin's behavior and continuous disregard for their advices.
Both ended up being mad at Matin qualifying him negatively after they gave him credit for being a hard worker.
For a while Victoria caused me to stay in but currently, I stick in cause other more confidencial sources tell me that something is effectively going on and the risk of loosing it all "seems" less than the one of making good wit this "speculation".
Seems and speculation are the key words here.
I have dozen of reasons to beleive that the Veltex we own is not the one described by Matin.
I have as many reasons to beleive that the Veltex we effectively own is worth something ... I just do not know what.
As for the audit, the last time Matin committed to do one, he di (Anne Tahim). Unfortunately it was so much disclaimed that it was meaningless.
Within 2 weeks or so, our PPS will suffer a nose dive or a great spike.
Having gone from the most negative to the most positive feelings times and times again with this stock, I certainly do not plan to jump out the window or get all exited whenever the end of the month comes.
Still I enjoy the game for the moment (I may be sadistic or masochist or both ???).
Forget it, there is no way to verify the said visit of yours.
By the way, would you beleive it if I told you I have great pictures of the Veltex Mills plant in Bingladesh?
"you ain't talking to virgins"
That's the understatement of the year. I think he effectively talks to old tired whores having been manipulated so often that they have a hard time beleiving an orgasm is still possible !!!
As I said, this is just a message on an anonymous message board. I never said it proved anything more or less than your posts relating the presume nught visit you made on the site.
As you can see, not much (but the PPS) has changed over the last 11 months or so.
VLXC was and still is a speculation and anyone can argue whatever he wants... os needs (traders do try to influence the PPS).
However this is only an anonymous message board and not realy a good way to hanle DD.
Still it's nice considering some do post interesting opinions and even informations sometime (see: message 5479 from someone I know is who he says he is - joelawyer)