Retired
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
To be honest I cannot even beleive that it went that far that long.
However, the more shares get bought over $2.00 the better.
I also assume that it will go lower than $2.00 before (and IF) Matin delivers.
I kept all my shares (speculative, long term placement on my part... gain a lot or loose it all), but got my daughter to sell 300 of her 750 shares at $2.80 yesterday. She now has cashed a $ 100+ profit and still own 450 free shares.
I told her that she has nothing to loose anymore, may be a lot to gain and she could buy again if desirable, 550 shares if the price goes down to $1.50 (average cost then: $0.75/share compared to her previous $1.00/share).
My wife on the otherhand did refuse to do the same saying she did "BET" (her word) and expected to loose her bet or make significant gain...not interested in making only a few $$$ she said.
Whatever the case, it sounds like no one will have regrets, whatever happen, understanding very well what is being done.
I certainly would not challenge your opinion.
However there is effectively a possibility that someone joined with Matin, throwing in the first million (the $ 1,000,000 requirement was just an initial requirement. I heard he needed more than $ 15,000,000 investment to get his company up to $ 100,000,000 sales).
If I was that investor and tought that this is what we would like it to realy be, I would have said:
"I will invest what you need to get further but first you have to normalize the status of the company".
Even to most stubborn person can make a move given the right motivators.
However, we only can speculate, hoping for the best and remembering that we already saw what's actually going on in the past, to thereafter be dissappointed.
We shall see.
I wonder if:
- People are accumulating
- People are trading in/out and we keep seeing the same shares
- Matin is dumping shares
However, some seem to be buying at high PPS in large amounts (up to $ 25,000 a pop).
9:30:34 AM Trade 2.95 1000
9:30:34 AM Trade 2.93 500
9:30:50 AM Trade 3 1000
9:30:50 AM Trade 3 1000
9:32:32 AM Trade 2.95 1000
9:32:32 AM Trade 2.95 1000
9:34:22 AM Trade 2.95 5000
9:35:10 AM Trade 2.9 7500
9:35:58 AM Trade 3.09 8000 ($ 24,720)
9:51:00 AM Trade 3 1050
9:51:00 AM Trade 3 300
9:51:04 AM Trade 3 5000
9:51:24 AM Trade 3 500
9:51:24 AM Trade 3 1000
9:52:08 AM Trade 2.95 5000
9:55:34 AM Trade 2.95 250
9:55:34 AM Trade 2.95 250
10:04:18 AM Trade 3 2000
10:04:18 AM Trade 3 1000
10:04:18 AM Trade 3 500
10:06:38 AM Trade 2.86 173
10:06:38 AM Trade 2.86 500
10:12:00 AM Trade 2.85 5000
10:13:22 AM Trade 2.6 150
10:13:22 AM Trade 2.6 173
What I like is the fact that more and more of the cheap shares probably are being dumped and more and more of the shares out there are held at an over $2.00 cost.
Unless Matin does real stupid moves again, we are getting a better base to grow from.
However, recent NR's better be followed thru otherwise ...
Right but the calculated number of shares is the one that was effective on September 30th.
The speculation is that in return for funds Matin would have issued lots of shares since then.
Again, it's only speculation and we do not know if such is the case or not.
All I can say is that: IF (again) the financials showed are for real and coming from something we own at 100%, 2, 5, 10 or even 20 million shares is far from being disastrous.
Obviously I hope the number of O/S is closer to 2 than to 10 millions.
Without presuming of anything with this situation, I assume that IF the said audit (2003) was effectively produced, it would be in view of setting up for audited 2004 financials to be released in 2005 so normal reporting and listing on another market could be done.
Otherwise why would Matin suddenly produce a 1 year old audit that he tought was much to expensive up to now?
Another point: IF (This darn word as always) Matin found someone (a real business person) to invest a million or more in return for shares (whatever the price), it is highly probable that this investor got some kind of arrangment rendering normalization of the company mandatory.
In any case all we can do is to speculate.
Nice. I am sure you will be able to get back in at a much lower PPS if you so wish ... unless Matin credibly shows that what he wrote was true (???).
Hypothetically, assuming 40,000,000 outstandig, assuming numbers in the release are right, our run rate says a profit of (%5,070,550/3 X4)$6,760,000 is what could be expected.
On the basis of 40,000,000 shares, this is $0.17/share and applying a multiplier of 10, it means a PPS of $ 1.70.
Lots of IF's and assuming's in there but this is the maths answering your question.
Pure fiction in my mind, considering we play with many unknown:
- What is the company all about in reality
- How many shares are out there
- What is the profit applicable to these shares (ownership of Veltex Mills)
and on, and on, and on ...
A real speculation if I ever saw one.
The NR is all over the place and the news is (if you take it at face value) more than great.
My concern is that the average transaction is only made of 1600 shares (average) and that could mean that a lot of small shareholders jump out of the ship (remember that thousands of shares were bought at $1 or less).
I wonder who is buying (or accumulating maybe?) and if they are betting or know more than I. I tought for weeks now (as said herein) that some "in-the-know" are accumulating shares from soft hand shareholders just happy to get out with minimum or no damage.
That may only be a spike enginneered by MM's and traders but considering the fact that it follows 2 great NR's, it probably is more than that.
On the otherhand, trusting Matin remains dangerous till further notice.
The activity herein probably shows that many had dumped their shares a few weeks ago at $1.00 or less.
Personnally, I look and have hard time trying not to (yet) sell.
Sorry but I do not think so.
Average transactions are worth + or - $ 3,000. I therefore conclude that a lot of small buyers are taking profit right now and soon we will see a return to lower PPS.
The expected $ 10.00/share would only be possible IF (if again) Matin effectively behave s promissed by producing a credible audit.
Additionally, we could also need normal reporting to be started for the market to go that high.
Finally, getting out of the Pinksheet market would be required so a $ 10/share can be maintained.
A lot of steps to go thru but IF Matin is serious and realy confirms what has been claimed, thru serious normalization of the company, we're in for great days.
However having been burned time and time again by him, many (me included) keep being careful with this guy.
FWIW My comments:
1) If this is true (Audit and normal reporting required) we own a jewel ???
2) We still do not have a geographic breackdown of the financials but I noted Matin's quote: ""We have had continued success in all three phases of our business,..."
3) As of Sept.30th, this NR claims that we had 2,004,170 O/S ("Net income for the nine months ended September 30, 2004 was $5,070,550 or $2.53 per share."). That was to be expected but we have reasons to beleive that we now have a lot more (financing vs shares at half price) out there as of now.
4) Matin seems to maintain thru this NR that an audit is effectively in the works: "we look forward to issuing additional positive developments in the near future."
Summary:
Unfortunately, Matin's behavior over the last 5 years has made his credibility to say the least negligeable. Therefore this is by far the most important issue for him to resolve if this story has to create a growing and sustained PPS out there.
Very simply, if on or before November 25th, a "credible audit" is produced and confirms 2003 base and if normal reporting to SEC is done, even assuming 10,000,000 O/S (5 times the number of Sept.30th), we would have a profit per share of more or less $0.65/share therefore a "justified PPS" of over $7.00 (again, assuming 10,000,000 O/S).
We however for the moment only can wait and live with all these "IF", therefore are in total speculative mode.
We shall soon see. However it looks as if for the moment at least, some are prepared to play the game (the PPS went from $0.65 to now over $2.00 within a week or so and this over relatively large volumes).
Let's hope that buyers are doing the right thing (wondering who the seller(s) is(are)?)
Veltex Corporation Reports Record Net Income for 3rd Quarter
CITY OF INDUSTRY, Calif., Oct 27, 2004 /PRNewswire-FirstCall via COMTEX/ --
Veltex Corporation (Pink Sheets: VLXC) today announced a record third quarter
net income of $2,210,550 or $1.10 per share. This represents an increase of over
142% from the third quarter of 2003, which was $910,177. Total net sales for the
quarter were $9,880,200, an increase of over 119% from $4,500,888 last year.
Total net sales for the nine months ended September 30, 2004, were $30,880,200.
Net income for the nine months ended September 30, 2004 was $5,070,550 or $2.53
per share.
Javeed Matin, Chairman and CEO stated, "We have had continued success in all
three phases of our business, which is evident by our consistent growth in
profits and margins. This is a very exciting time for Veltex and we look forward
to issuing additional positive developments in the near future."
You're most likely right about tomorrow.
30 days from the NR is November 25th ... We shall see.
More (much) of my lifetime is behind me. I hope Matin takes notice.
I certainly (and I must admit selfishly) hope that the NR wasn't another of Matin's stupid promisse he knows he cannot deliver on.
For as much as I want to believe, I just can't ... for the moment at least.
On the otherhand, believing Veltex is for real I keep trying to believe that one of these days, Matin will divulge the complete thruth about what we realy own and what we do not.
Great speculation and up to now, quite entertaining.
And Re: oops!!!
20 hours to wait. I hope my previous post will not have to be repeated word for word tomorrow morning (???)
Very interesting but again we have no insight in the progress made in USA, if any.
It sounds great relative to the progress made but the very large part of it seems to still be out there in an organisation we still wonder if we own or not).
The last time I read something about the USA based revenue was in Anne Tahim "audit" saying that only $ 261,000(recollection???) was generated in USA.
I hope (???) Matin will shed some light on these two items (Revenues in USA and ownership of Veltex Mills) tomorrow morning. However, unfortunately, I suspect we will only see copy of your found NR and still will be left wondering.
The other question I would like to see an answer to is: "How many outstanding shares are out there at the present time?"
Having waited for over 5 years to see this thing blossom or die (no in between in my mind), I plan to keep doing it.
To the best of my recollection, Matin has lead us to beleive 18 to 24 months ago that this was his plan (unfortunately, since VLVT became VLXC, I cannot access all the old PR'S I used to have access to). However, I do not think he ever was that affirmaive and specific at the same time.
This being said, the reasons I am VERY RELUCTANT to buy in this NR is that I still do not know the answers to:
- Why did Matin try to buy something (remaining of Veltex Mills) he kept claiming to be ours all along?
- Why did E & E (another one) drop him very recently.
Matin has so often not delivered on his commitments that I feel I would have to be fool to just beleive him at face value right now.
Whatever the case, as I said earlier, I just sit on my share, would not buy right now (in doubt abstain) and I do not sell either (Always was a speculation and it still is).
Forgot to paste it...
Wouldn't it be nice:
"The Company is currently undergoing the audit by a SEC licensed auditor. We expect the audit to be completed in the next 30 days."
I just hope it's not only another lie in view of helping those that got cheap shares in return for funding.
Veltex Corporation Announces Plans to Become a Fully Reporting Company
CITY OF INDUSTRY, Calif., Oct 25, 2004 /PRNewswire-FirstCall via COMTEX/ --
Veltex Corporation (Pink Sheets: VLXC) plans to become a fully reporting Company
upon the completion of its 2003 audit. The Company is currently undergoing the
audit by a SEC licensed auditor. We expect the audit to be completed in the next
30 days. Veltex will also be announcing its 3rd quarter results on Wednesday,
October 27 before the market opens.
Javeed Matin, Chairman and CEO states, "Over the past 5 years we have worked
very hard to grow our business. Veltex has evolved from a startup stage company
to a business on pace to produce over $40 million in revenues annually. We feel
that now is an excellent time to reward all of the company's faithful
shareholders and followers. We at Veltex believe that by becoming a fully
reporting company we will significantly enhance investor confidence and the
stock market will finally appreciate all of the hard work we have put in.
Additionally, larger investors and institutional traders will be able to
purchase shares of Veltex once the Company is listed on a major exchange and is
filing SEC statements. During the first six months of 2004 we have produced over
$20 million in revenues and $3 million in profits. We have numerous exciting
opportunities that should materialize in the near future."
Wouldn't it be nice if it was true?
Was away for a while when you guys started to discus "bones" and never understood what you guys were talking about with this "bones" thing.
Sorry!
Being a GENIOUS, I doubt it but I beleive (do not say "know") I have it pretty right.
Just went to the other board after months and saw that some (I suspect many) are dumping their shares expecting to buyback at lower PPS later (they may very well succeed ???).
I however wonder if these shares are not being accumulated by few (including Matin).
It would be darn nice to know how many individual shareholders are left, who they are and how many shares they each own?
If Matin effectively is stuck with a lie he made earlier (ownership of Veltex Mills), getting the PPS as low as he can and buying (by himself or with partners) every shares he can get to, may be the strategy he has to minimize (I didn't say eliminate) the dammage whenever he wants to correct it.
He may go as far as positionning his "team of shareholders" to buyback all remaining shares at a PPS that the board (whoever they are) would accept, therby rendering Veltex a private company (Matin seems so attached to having shareholders???).
Somehow, some day, the thruth (good, bad or very bad) will have to come out (unless it's corrected when the company has become private).
Then (assuming privatisation), a couple of years later, the records having been corrected, the company could issue new shares and start fresh.
I suspect this could not be illegal ... just immoral.
I also suspect that morality is not the priority of Matin.
On the other hand, may be I have it all wrong.
My opinion again is that Matin is honestly and professionnally trying to build his USA based business.
The problem is that he lied in the past, hides it and now has to live with it.
I assume he tells himself that he must be able to show something good (a reasonnable USA based operation) before he admits he lied about Veltex Mills (the plant does exist but the ownership is very likely not as claimed).
His way out is a "good news - bad news" strategy.
A "no reason to accept the bad news" strategy would cause his business death.
The key: Can he make the USA based business worth the capitalization out there and when? Your message says he tries and it looks serious.
My opinion only.
"I am here with half of my VLXC shares left,laughing at myself for being so stupid to invest in this company."
DITTO! However I did not invest (except for the few shares I bought in 1999) in this but "Speculated" or did "bet".
Whatever is realy going on out there, I think that the following also applies to VLXC:
"This is a long term stock and is high risk.If every thing goes fine,then the return is high too." "Again this is a very high risk..." ... Speculation.
Good luck to you to.
IF (big one) my hypothesis is right, I suspect we will not see a credible audit before either Matin admits that we do not hold 100% of Veltex Mills and clear this issue (what do we own ... if anything out there?), or he grows the US operation enough to justify a PPS (capitalization) worth mentionning.
Unless he blows it and goes under, he will have to show his cards one of these days (weeks, months or years).
Till then, every imaginable scenarion is possible.
As I said there are a lot of reasons to beleive that the company is for real.
Look at the following scenario:
Matin spent a few years building up the manufacturing facility I saw a picture of and an Asia based business which became quite successful.
Doing so (for whatever reason) Matin did not get the claimed 100% ownership of whatever this is.
He then came back to USA to create a distribution company and behaved as if he did have full control out in Bingladesh, issuing financial results including 100% of those of his "subsidiary" (???).
He went as far as having "Anne Tahim" issue an audit set of financials (99% based on another audit of the Bingladesh operation, done by another firm).
She later (as Investrend and more recently E & E) found out that Matin doesn't realy have control of Veltex Mills.
Oups !!!
Since Matin behaves as per this hidden critical information, continue to work at building the USA based leg of Veltex trying to figure out a way to correct his " error " (???).
He tries to pull a fast one on his shareholders trying to issue millions of shares thru a BOD resolution but gets caught by the nasty shareholders we are (Probably did not expect us to be following him that close).
Oups ... Again.
Here we are.
I do not have a clue how Matin will pull out of this mess but, one of these days he will have to set the record straith, one way or the other.
Then and only then will we be able to know what we realy own and what we do not. At that time only will "WE" know how many "WE" there are.
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.