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Over the last 6 days (before today), only 29,320 shares on average were traded per day and the PPS fluctuated between 65 (today) and 75 cents (yesterday). The average trade size (today) is worth roughly $1,000 (1,540 share/transaction).
Not much to read out of that except that it looks as if small shareholders are dumping their few shares walking away from this speculation (My opinion only).
Personally as often said I stay and wait (expecting even lower PPS within the next months).
Many reasons to beleive that a real company is behind the stock (shows, office in CA, internet site, ....
However, one single very important unanswered question remains:
"What portion (if any) of the Bingladesh facility (I saw a picture of it but it never was released publicly by Matin) do we realy own?"
I beleive the financials released by Matin are made on the assumed basis that he owns it all. I also assume that the issue making people get their distance from Matin is the discovery that he doesn't own it (at least not at the often claimed 100% level).
I cannot get over his recent attempt to buy the portion he said he doesn't yet own out there.
This (assumed and probable lie) also is the reason he cannot have a serious audit made, unless he accept to acknowledge this.
The effective ownership of the Bingladesh facility is probably the explanation of Matin's behavior since he came back to USA.
Therefore the question is: "how much are our shares realy worth? A better way to put it, considering probable recent dillution, is: "What is the total worth of the company that is effectively behind our stock?".Capitalization at $0.655/share would be:
- $ 1,300,000 (assuming the very unlikely 2,000,000 O/S)
- $ 6,500,000 (assuming 5 time more O/S)
One of these days, Matin will have to show up or shut up about the real financials of the real company behind our stocks.
However, that may not be very soon in my opinion.
Present...
Looking at what volumes we saw over the last month or so, I wonder how many shareholders are left out there.
May be (and it's just that: may be) few (including Matin maybe) accumulated a lot of the shares thrown in by those having lost faith recently (over and above new one issued recently).
36,000 shares today and 6000 yesterday says that effectively buyers are few but obviously sellers are not in a rush to dump their shares anymore.
Whatever the case, I suspect that action will remain limited till we figure out what this is all about ... good or bad.
My expectations on this issue ... FWIW!
1- He got his million
2- He gave away + or - 2.5 million shares in return at 50 cents or less (Thru a shareholder's agreement he could have protected whatever control of the company he has)
3- One of these months (not fool enough to try to estimate when) Matin will tell us that books have been audited, sales and profits were roughly what he forecasted in his release last Sept 27Th (I think).
4- We then will find out that we have around 7 and 10 million O/S and the profit per share will be about $050/share.
Till then we will have to live with a liar trying to hide his real problems (I suspect related to ownership).
On the otherhand (but I doubt it) it would be crazy not to recognize the possibility that Matin is realy full of it and behaving as an owner, when he is not. In this case, we are stuck with shares worth a fraction of whatever he own, possibly nothing.
I have a hard time forgetting that he did try to issue millions of shares to acquire the "portion he doesn't own" of the Bengladesh facility.
That SPECULATION all the way.
No one should hold his breath ...
E & E Communications did drop its relationship with Matin ... Another one.
Note That E & E name doesn't show on this morning NR.
Personally, I generally invest in a stock (after having one my DD) and then let it ride LONG unless I can cash in my expected profit or find out I made an error an can limit my loss.
I never (but once) buy on OTCBB and/or PS market in view of trading in and out tryink to make small profits now and then. I have nothing against that it's just not my game.
However, as it is the case for Veltex, following the blowup of the bubble in 2000, I got stock with stocks that became delisted and became not worth getting rid of (unless fox tax losses use). In these case, I just forgot about them,but kept seeing them on my monthly broker's report.
In some cases (Veltex being one) if the stock ressussitated, I got rid of them or averaged down somewhat depending on my findings.
At 75 cents or so right now (only having 5000 shares averaging a cost of $ 1.50 or so, I let it ride specifically for some of the arguments you mention (not having a clue if they are or not valid ... Only Matin knows for the moment):
"What he cares about is growing the business in whatever way he can."
"think that there is a real possibility that he will grow this company very well and someday emerge on to a real exchange"
If that happens to be the case, I am prepared to wait (LONG) and see.
As for the dilution, IF (a big one) the forecasted financials we saw are anything close to reality, this company could easyly endup doing (just based on the recently (Sept 27th) claimed profit per share of $3 (based on 2,000,000 shares).
Let's assume that the number of shares become 5 times bigger at 10,000,000 O/S and the money is effectively used to grow the business, then, even not increasing the quoted $3 profit per share we still get a $0.60/share profit justifying a PPS of (multiplier of 10) $ 6.00.
Then the only question remaining (nothing realy changed) is: "Is everything that the company did put out up to now, an outright lie (there is no company as some suggested) or is it (somewhat) close to reality?
If the second hypothesis happens to be the right one, with the level of market value (capitalization) we have right now, we can afford quite a dilution (even 5 times currently known O/S level) and at the same time have a real great stock on hand.
-Still beleiving (personal contact saw them at action) that "there is a company operating out there" (however may be not as profitably as claimed),
-not realy having a short term need for the money frozen in there ($ 3,750)
-Believing that MAYBE, as you said, shares are being issued to grow the business and
-Handling this speculation as if it was a LONG investment (in a company having longer term objectives),
I consider that sitting on my shares is not that bad a decision, considering a few years horizon (hopefully 1 year or so before we can have a better idea).
This being said, I conclude as you did:
"Considering that there is hardly any information available about this company except what they tell you themsellves no one can know with any degree of certainty what the real truth is."
"Wonder if this was done purposely?"
Refusing to believe that Matin is just stupid, I assume he did that on purpose.
For what purpose?
Who the heck knows... but him?
I realy feel stupid sitting here listenning to the sams BS (audits and other never met promisses) over and over again.
This is the LAST time I throw in spare money (averaging down an old assumed dead stock) in such crazy stocks (OTCBB That is for sure. The next time I have some money to gamble, I will go in a Casino. At least I will rapidly find out if I lost or won.
I realy am ashamed of having been a suckee in this affair. From here on, I expect the worst and sit on my shares till Matin's "PURPOSE" is known once and for all ... whatever that will be.
BBBuuurrrrkkkkk!!! (sorry I threw up on my keyboard ...
Shrotker,
Same to you and all others herein.
If $ 1.80 became available, I assume much more would be in the cards. Either this is for real (then worth much more than $ 1.80) or not (then lucky to get $ 0.18).
Have one on me:
http://www.sydes.net/jokes/flash/beer.swf
2 weeks are up.
The infamous R/S decided by Matin made the share go from $1.01 down to $0.82 and this notwithstanding new promisses for a great future and an illusive audit of a FY that ended 9 months ago.
Considering the total lack of credibility Matin has in the market this is not a surprise.
The "market (value) cap" of Veltex keep staying at around $ 2,000,000, may be even $1,500,000 as it has been for many many months, whatever the number of shares are out there.
Therefore if we now have between 1,830,000 and 2,440,000 O/S in the market, at $0.82/share, Veltex is still evaluated by the market to be worth $1.5 to $2.0 millions. ( just hope we are not yet in the 3 or 4 million O/S range ???)
Another way to look at it is that this stock remains a high risk, high potential SPECULATION where chipping in few dollars one can afford to lose, is (as playing in a Casino) a fun game offering interesting reward potential.
The only question is what cards does the house have in the hole.
Till Matin finally shows his hand, we have no way to know if we lost all or hit a jackpot... nothing in between.
Considering however that people can always take their leftover money in this Casino, I would not be surprise to see soft hands (or players that cannot afford to loose it all) take their losses and leave the table. Therefore, I suspect that we shall see quite lower PPS within the next weeks or months ... unless Matin accept to do something that would create some kind of credibility for his story.
I do not hold my breath but stay at the table.
Pual is sitting on his shares waiting ... for God (and Matin) Knows what.
As for the PPS, the market said that this company (based on what we know and do not) is worth (market value) + or - $ 2,000,000..
Divide it by 200,000,000 or 2,000,000, it's still worth $ 2,000,000 (not necessarely a bad news following a misscheduled R/S).
My concern is that Matin renders the divider bigger than 2,000,000 before the market receives reasons to beleive that this is worth more than $ 2,000,000.
No wonder,
Unless you've been following this story for months or years, if you see a company looking at $40,000,000 sales this year, a profit per share of 2 or 3 dollars per share, a forecast of $ 100,000,000 in sales and beleive that audited reports will very soon become available, I assume that you would chip in a few dollars.
The above says that this stock should have a PPS of 20 or 30 $$$ soon and 2 to 4 times more within few years ... You can get it for $1 right now.
Let's hope that new shareholders do not have to go thru the same as us for the last few years.
We have participated in 5 shows this year, up to now.
"These shows can bring in over $1 million in sales per show."
" The trade shows have been a tremendous success for us."
but: "Veltex Apparel is expected to add considerable sales and increase profit margins in 2005."
What about 2004? 5 out of 40 millions (12.5%) in revenues in 2004 are not worth mentionning. How many shows do we intend to be in in 2005? how long does it take for the fallouts of a show ( 1 million ) to be realised?
As for "the 2003 audit should be completed in the next 45-60 days", let's hope that it comes in time (on or before Dec 6th) and it is more reliable than the last one.
We shall see... This againn looks great but I've been burned to many times up to now to be excited by this PR ... hoping however that this time it will be a nice surprise ...
Who knows.
"where are you man?"
Right here! Do not worry...
Remember my post 5115:
" I prefer to wait a few days before I conclude that the R/S hurt us or not."
"Let's see what close will be friday next week before we get reassured somewhat."
Then I look and wait... I even probably have to wait even more than a couple of weeks.
However, up to now at least, I must say that the R/S had no apparent significant impact.
This being said, I would realy like to know if Matin did or not use the opportunity to issue new shares at $1.00 or so. We should find out in some time also.
Finally, since the R/S came into effect, we saw volumes of 155,000 shares per day on average. That's 15,500,000 old shares.
If you exclude the last 2 days the old shares traded (28,000,000 shares/day), a normal volume day (avg 5 previous days) saw 1,800,000 shares traded per day.
One impact of the R/S, up to now, was at least an increase of the effective volume of shares traded by a factor of almost 10 (at the same time keeping the PPS quite stable).
If one of Matin's objective was to ease acquisition of funds thru letting go of more shares, up to now, he would have been able to do it without having to announce an increase of the A/S.
"WAIT" was, is and still will be the name of the game with this stock. The alternative is sell.
I wait.
May be you also dream ???
Often, you do not remember your dreams but they were still there.
LOL!
You certainly went pretty far back. However, this probably was the smallest lie Mati ever said in here.
However, he did prove very seriously that he is an MBA (Master in Bullshitt Administration).
Seriously, MBA of any kind or not, he has shown time and time again that he is not qualified whatesoever to manage a company, particularly a public one.
For sure, whatever diploma he ever got, he did not have finance a a major.
I have a dream...
Matin decides to get a CFO on board and understands the following generic description Of our CFO:
Job Description Of A Chief Financial Officer
********************************************
JOB SUMMARY:
************
To direct and oversee all financial activities of the corporation including preparation of current financial reports as well as summaries and forecasts for future business growth and general economic outlook.
****************************************************************
ESSENTIAL FUNCTIONS:
********************
1. Directs the preparation of all financial reports, including income statements, balance sheets, reports to shareholders, tax returns, and reports for government regulatory agencies.
2. Oversees accounting departments, budget preparation, and audit functions. Meets regularly with department heads to keep informed and to offer direction.
3. Reviews reports to analyze projections of sales and profit against actual figures, budgeted expenses against final totals, and suggests methods of improving the planning process as appropriate.
4. Analyzes company operations to pinpoint opportunities and areas that need to be reorganized, down-sized, or eliminated.
5. Confers with president, vice president of sales, vice president of manufacturing, and division leaders to coordinate and prioritize planning.
6. Studies long-range economic trends and projects company prospects for future growth in overall sales and market share, opportunities for acquisitions or expansion into new product areas. Estimates requirements for capital, land, buildings, and an increase in the work force.
7. Supervises investment of funds; works with banks and/or investment bankers to raise additional capital as required for expansion.
****************************************************************
QUALIFICATIONS:
***************
1. Master's degree in business administration, accounting, or finance.
2. C.P.A. designation preferred.
3. Knowledge of database and accounting computer application systems to supply the most accurate financial information.
4. Eight to ten years of experience in financial management with increasing responsibilities for multi-faceted direction and planning.
5. Excellent verbal and written communication skills.
6. Excellent analytical and organizational skills.
"We'll find out, one way or another, down the road" ... I would prefer up the road but in any case, the driver would have to be replaced if we do not want to end "off the road".
" at the lowest possible price"
This guy (Matin) has a fixation on low price: Loow PPS, Low selling price... I sincerely think he is incompetent that's all there is to it.
Seem not to understand that PPS is an asset a company can exploit when funding is required (as long as it's not ridiculously "undervalued" as he say).
Seem not to understand that "very competitive, profitable price" is not necessarely the "lowest possible price", given the appropriate quality of products.
This guy is Wrong, fights the wrong war and does it the wrong way (no reference made to another topic).
I do not know what Matin's game plan is, but one of these ... years maybe... he will want his shares to be worth something ... unless he only owns millions of (voting) options to be exercise whenever at a very low price.
Sitting on my shares till the drama unfolds ... one way or the other.
We obviously saw many new shareholders joining in within the recent days. I think Matin realises that he has a french new audience and he seem to intend to entertain them as he did us for months, even years.
Bottom line is: Till Matin starts operating as the CEO of a normal public company, the market will not accept to support a capitalization of more than $ 2,000,000 or so.
200,000,000 or 2,000,000 O/S, the market is that this company is actually only worth that much.
If dilution is done before credibility is established, I assume the PPS will get down to $ 2,000,000 divided by the number of O/S, whatever that will be.
That's what II was afraid of:
This Status Date: 09/15/2004
Thanks anyhow for the reference.
May I suggest you do not hold your breath?
Thaks, very nice information. I just hope the site has been updated considering the R/S only took effect yesterday.
Javeed Matin, Chairman and CEO said that "we believe this is a critical step in gaining investor confidence as well as helping with further expansion of our Company."
Could it be that he finally listenned to those shouting that goinf back to the V.Duff days?
Or is it another of these apparent lies he seems to be throwing around carelessly (ownership of Veltex Mills, audits being done, ...)
Time (again) will be the only way to know.
I wonder how long it would take to produce audited results for FY2003.
I also hope that the report will be something else than the production of a copy of a document handed to the auditors by the company (Matin) claiming it was generated by an unnamed auditing firm (see Anne Tahim covering letter of the continuously referred to audit of 2001 and 2002).
As some Floridians would say: "Are we in the eye of the storm or is it over" ... till the next one?
I assume we will have to wait and see. Opinions are conflicting.
Gee! surprizing, we now have a new question regarding this stock...
BAU I suppose...
I think that the spread of the PPS we saw yesterday made MM's and traders very active and many shares were traded in and out a few times. Therefore we have no way to know how many shares effectvely had changed hands at the end of the day.
As for the number of A/S, I am being told by my broker that it may very well still be 200,000,000 but it all depends on the specific wording of the BOD resolution implementing the R/S. He estimates that it would not have been smart on the part of the BOD not to protect this flexibility (200,000,000 A/S) for rainy days(he has his ways with words !!!).
One of the very significant information we should get soon is the number of O/S that will be out there, let's say 1 month from now. I for one expect to see it much higher than $2,000,000, even higher if Matin finds the financing he is looking for (giving shares in return). I already can see his justification turning around his already set argument of financing his rapid growth to sales of $100,000,000 ... not even giving us access to confirmation of the financials already claimed but unaudited.
The most important statement of yours is: "If this Javeed character can get his act together, ...". I however do not hold my breath.
"Most r/s issues I know fall back fairly rapidly."
I prefer to wait a few days before I conclude that the R/S hurt us or not.
Imagine a new comer finding out about Veltex this morning. He read:
"announced the completion of a 1 for 100 stock split ... major step in its ultimate goal of becoming a fully reporting security on the NASDAQ exchange"
"2 million shares outstanding"
"second quarter net income of $2.0 million, or $1.00 per share"
"net sales increased more than 180% to $21.0 million for the six months ended June 30, 2004 from $7.4 million for the same period last year."
"Earnings for the six months ended June 30, 2004 were $1.43 per share based on the current shares outstanding."
"Veltex raised its sales guidance for
2004 by 60% from its previously announced estimate of $25 million to $40 million. Net income for the full year 2004 is projected to be $6 million or $3.00 per share."
"Audited financial statements for ... are available at the investor relations section of the Company's website."
"goal of raising sales over $100 million annually"
Then he went to see the market and saw that from a close friday at $1.01, it opened at $1.25 today and became $1.50 the $ 2.00 within less than 30 minutes.
WOW! did he say, I found a great one here.
As many he will figure out what this realy is (potentially incredibly good but also quite high risk considering how it's being managed.
Then we shall see.
Let's see what close will be friday next week before we get reassured somewhat.
This being said, we went thru the first day with no apparent damage.
Effectively it was on the other board and it read, looking at the other side of the day:
Interesting trades around 11.27 this morning (between the 2 trades at $ 1.05):
11:31:44 AM Trade 1.05 100
11:27:56 AM Trade 0.7 2500
11:27:10 AM Trade 0.68 4000
11:27:06 AM Trade 0.65 15700
11:27:04 AM Trade 0.7 1000
11:27:04 AM Trade 0.7 1500
11:26:58 AM Trade 0.65 2000
11:26:48 AM Trade 0.7 500
11:26:38 AM Trade 0.65 510
11:26:26 AM Trade 0.7 510
11:26:12 AM Trade 0.65 2500
11:25:50 AM Trade 0.65 1000
11:25:40 AM Trade 0.7 1000
11:24:56 AM Trade 1.05 4500
14 trades = 32,720 shares = $ 21,739 (all within 2 minutes 16 seconds at an average PPS of $ 0.6644/share))
Someone was in luck or
Someone did loan $ 20,000 to Matin in return for shares at 50% of $ 1.30 or so (First transaction of the day was at $ 1.25)
I wonder how many O/S we now have out there as of 11.45 ???
Interesting transactions today (since I did not succeed getting my position reduced somewhat I hope they know something I do not but ...
10:27:56 AM Trade 2 5680 ( $ 11,360)
10:36:20 AM Trade 1.3 7500
10:36:20 AM Trade 1.29 7500 (If 1 buyer: it's $ 19,425)
10:59:42 AM Trade 1.15 5000
10:59:42 AM Trade 1.13 5000 (If 1 buyer: it's $ 11,400)
11:21:56 AM Trade 1 10000 ( $ 10,000)
11:23:40 AM Trade 1.01 20000 ($ 20,200)
11:27:06 AM Trade 0.65 15700 ( Already mentionned this one in a prvious post ... or was it on the other board)
2:35:10 PM Trade 1.05 10000 ( $ 10,500)
As you probably already notuced, the link doesn't work anymore. Someone has just change the name of this board from VLVT to VLXC.
Thanks to him.
I tried to sell 1500 (ex 150,000) of mine and 750 of my daughter (all her shares) at $ 1,80.
No luck up to now.
BS if I ever read some
1- "the Company believes is a major step in its ultimate goal of becoming a fully reporting security on the NASDAQ exchange." ... How do you say it in english: "putting the bull in front of the wagon"?
2- "we believe the stock will appeal to a broader universe of investors.". Why would they now beleive what they did not before. Since when is $100 worth more than one hundred $ 1 bills?
3- "We believe the split will help the Company achieve its goal of raising sales over $100 million annually by assisting in
achieving more favorable financing terms for growth of our current business and strategic acquisitions." A stock split contributes to raising sales ????? assist in obtaining more favorable financing???? Give me a breack. At the closing friday, the market estimated the value of the company to be (capitalization) $ 2,020,000 (including the impact of speculators and traders fooling aroung with penny stocks). Why would a R/S change this perception ???
4- "Audited financial statements for the Company's 2001 and 2002 results are available at the investor relations section of the Company's website." Anyone looking at it will notice that nobody knows who did this audit (see the Anne Tahim's disclaimer) and wonder why 2003 still has not been "audited", 9 months later?
... and that does not even explain why Matin did try to dilute his shareholders to buy something he always claimed we own ???
Let's get serious...
"The only thing I can think of is that he has a basket full of options and is allowed to vote them."
Up to recently I would have tought this illegal even if possible. However, following the Molson's plan to merge with Coor's, I found out that it can be done on a simple majority vote of the BOD.
Obviously shareholders are pissssed but up to now in this case the BOD did not change it.
Matin may be able to control with options, whatever number of real shares he has.
The question then becomes: "If he doesn't have enough shares to exercise control, how did he get to pass a BOD resolution allowing options to vote?"
Questions, Questions, Questions ... Except for hypothesis based on informations that cannot be verified, that seems to be trhe only constant in this situation.
Fear, Uncertainty and doubts (FUD) not being compatible with finance and investment, I doubt that the new PR will generate the enthousiasm we would like to see. Matin can do whatever he wants, till his story is validated in a normal way (audit and reporting), our stock will remain an highly speculative affair that no serious investor will even get close to ...
CREDIBILITY, whatever the market we get listed on, was, is and will remain THE ISSUE.
Till Matin figures this out, all his "incredibly" outstanding PR's are money thrown in the river.
Since we can assume he is not stupid, the question remains: "Why doesn't he do what has to be done"... and the cost argument, not to have his finances audited (considering the claimed financial health of the company) is pure BS.
Finally, behaving as he does and having to search for financing backed by throwing away additional shares are totally incompatible with the financial situation Matin keep advertizing.
This is by far the most ridiculous situation I ever saw playing the stock markets. However it's a speculation (may be even a long shot bet) that I intend to let go and see.
O/S will become 2,000,000 A/S will remain 200,000,000.
Having 500,000 shares of my own (however looking to reduce that somewhat) I certainly hope we could get reliable source (credible audits) confirming statement from the company. Then we could discuss FACTS more than opinion.
Right now the facts are that the market doesn't beleive what the company says and this stock is becomming a toy for traders... unless someone having access to facts uses this knowledge to accumulate ... or dump shares.
Who knows?
"Besides, 200 million A/S is still nothing for a PINKIE"
If these however were to become O/S after the R/S, it would be the equivalent of 20,000,000,000 curent shares.
However 1,000,000 or 100,000,000 shares only matters in relation with the capitalization (value the market gives to the company).
Right now, the market says that Veltex, notwithstanding the finacials reported, is only worth less than $ 2,000,000.
"Show me where it states WHAT corporate information they were waiting for that they did not get??????"
"Veltex Exhibiting at Atlantic City's Promotions East
Jun 10, 2004 (financialwire.net via COMTEX) -- (FinancialWire) Investrend Research analyst David G. Tildesley, CFA, is preparing a Focus report on the company, but has been awaiting corporate information for its completion.
Sep 24, 2004 (financialwire.net via COMTEX) -- (FinancialWire)
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.
Now if you want to beleive that the "WHAT" is anything but credible legal/financial facts (AUDIT) ... it's up to you.
"Matin said that to become a reporting company would cost $700,000 when I asked him about it."
However he told the following to a poster (Joelawyer) mid-July:
POST 4471: " As far as the "audit" issue, he said that has been frustrating because the large firms want 200,000 dollars to do it and he views that as a huge waste at this point in time since the company is not required to do one as an OTC company. He believes the auditors currently being used are, in fact, credible and very adequate for this stage. "
I personally beleive than $ 200,000 is largely enough for Veltex to have a credible audit oerformed at this point.
I cannot say what for but Matin doesn't want do have his books audited and this is THE ISSUE we all directly or indirectly discuss herein.
CREDIBILITY IS THE ISSUE and it will remain so till Matin decides to stop behaving as if he had something to hide behind his seemingly to nice to be true story.