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Interesting discussion relative to potential future PPS.
Obviously, we assume (still to be verified) that the recently issued reports were for real and accurate.
Let me set some assumptions:
1- Number of shares by the end of 2003 was 150,000,000 (may be less)
2- 2003 was as good as and identical to 2002 (notwithstanding claim that it was even better).
Then at the end of 2003:
1- Stockholder's equity was $14,296,270 (the $11,000,000 mentionned in th interview by the investment banker referred to the $11,290,618 at the end of 2002). That's $0.0953/share.
2- The Retained earnings - unrestricted was $5,835,475. That's $0.034/share
3- The net income for 2003 would be $1,653,494 or $0.011/share
Therefore, assuming a multiplier of 15 X the EPS a PPs of $0.165/share is quite realistic, even conservative if we consider that Veltex would have been profitable 3 years in line.
An even better multiplier could be acceptable if projections are positive and the KCA story is also accurate. The above assumes a revenue of $13,640,242 for both FY2002 and 2003 and the interviewe earlier this week mentionned a $30,000,000 figure, accounting for KCA and I assume that this also took into account that some revenues were generated in USA in 2003 and will even more in 2004 (contrary to the 2001 and 2002 reported ones that were all made in Bengladesh.
Therefore, ASSUMING ALL WE RECENTLY SAW IS NOT TOTAL BS, I would forsee a $0.25/share a very likely reachable level by year end 2004 (I do not know about the $0.40 however).
Finally, if all what we recently learned is true, Matin would have built a tremendous organisation, allowing low production costs and a vertical integration opening up a great distribution capacity. If the Jameel Amad nomination effectively targetted the creation of an effective marketing force (as alided to in the interview) the future outlook could easyly justify a larger than 15 multiplier of past EPS.
Am I dreaming? May be...
Could that many people (Matin is not the only one claiming a great story anymore) accept to blindly support what would effectively be the scam claimed by some? We saw worst in the market ...
The gap between current PPS and the one we all hope for will only be closed by Matin getting C R E D I B I L I T Y in the market.
I beleive that the Anne Tahim firm (from what I know it's a credible one) is THE KEY to getting it or not.
Notwithstanding their last CYA statement ("We did not audit the statements of Veltex Mills. They were compiled by other auditors ... unnamed... whose report has been furnished to us, and our opinion, as so far as it relates to the amounts included for Veltex Textile Mills, is based solely on the reports of other auditors) I have good reasons to beleive that they will now validate that they are not being used in participating in a scam.
My understanding is that they went "blind faith" in dealing with Matin and whoever the Bengladesh auditors were the last time but WILL NOT repeat it the next time.
I expect that we will soon (befoere the snow melt in here) find out if they were or not fooled and therefore issued false reports or not, in good (blind) faith.
Till then, I enjoy owning these lottery tickets and I feel my odds to be better than any other lottery I play in.
The real value of our share will depend on the accuracy of what we already read (mid-January releases) and the one of the next releases we will be able to verify somewhat.
If you beleive (and the market can verify) what you read and heard recently a $ 0.25 PPS or more is very probable.
If you do not, any PPS is to expensive to jump in right now.
Obviously the market currently doubt very much the accuracy of what we have been told, therefore the current speculative variations.
The essence of the issue here is CREDIBILITY.
Frustrating ??? Imagine having been involved for almost 5 years or even since the December 2002 business plan was issued.
I firmly beleive that within the next few months (at least during 2004) we should have a better understanding of what this realy is.
Let's hope for the best ... accepting that the risk is currently quite high.
If you want to gamle, you can get 4000 shares/$100 ... High risk, potential very large rapid profit (10 to 1), possibility of losing it all (?.??% chances.
GLTA!
"The company plans to release preliminary financials for the First and Second Quarters of 2003 shortly. The full year 2003 numbers are expected to show a healthy increase in both Revenue and Net Income over FY 2002 and will be released in a few months."
You may be right but, since there is no mention of "audited" in any case (even reffering to "full year 2003", considering that Veltex has now auditors on board and "few weeks" were still required to release preliminary financials for Q1 and Q2, I DID ASSUME (I may be wrong) that the next release will also have been audited before it's issued.
Additionally, following my advice to Anne Tahim, I assume she will require explanations from Matin (what is the Bengladesh operation all about?) before she let him issue a follow up set of numbers (audited or not) to her recent report ... unless this auditing firm doesn't care taking the risk to have its name and reputation associated with a potential scam ???
We shall see.
O.T. We may be impacted by the following ???
got this from another board,
Effective Date of Amendments to NASD Rule 3370 (Affirmative
Determination Requirements) Extended to April 1, 2004
http://www.nasdr.com/pdf-text/0408ntm.txt
NASD Notice to Members 04-08
Executive Summary
NASD is delaying the effective date of amendments to Rule 3370 (Prompt
Receipt and Delivery of Securities—the "Affirmative Determination"
Rule) approved by the SEC in November 2003,1 until April 1, 2004. The
amendments expand the scope of the affirmative determination
requirements to include orders received from broker/dealers that are not
members of NASD ("non-member broker/dealers"). The effective date of
the amendments originally was February 20, 2004.2 NASD understands
that some members need to make significant technological changes to
their systems to comply with the new requirements; therefore, NASD is
extending the effective date to provide members with additional time to
make such changes.
Notwithstanding a previous message of mine (Matin is not the only one signing his song anymore), Matin has to render whatever he (they) says more credible and verifyable.
For that to be, as soon as FY2003 results are released (credible verifyable audits of both the operations in USA AND IN BENGLADESH) starting to normally report periodically will be a requirement for the PPS to reflect the real value of the company.
Till then, the PPS will stricly vary with the actions of Money Manipulators, trades and speculators.
Whenever Veltex does report normally, Matin will have to do whatever is needed to have our stock listed on a real stock market. That may require R/S but personally I prefer to have 1000 shares listed on AMEX with a PPS of $3.00 than 10,000 shares worth $0.30 on the Pinksheet market.
!st step will be to deliver ("within weeks" as promissed) Q1 and Q2 financials of FY2003. I assume that the auditing firm (Anne Tahim) will do whatever is needed to not have to disclaim their report (Bengladesh numbers) the way they did it the last time (an auditor most travel out there, see the claimed facilities and discuss face to face the audit made locally).
Listening to the interview, I was thinking that, up to recently, all we had to read or listen was the confusing words of Matin on one hand and the constant disparaging messages of an anonymous guru posting under many different aliases, on the otherhand.
The only source, external to Veltex, I remember was V.Duff who, frustrated as a consultant not to be listenned to, took her distance from him but always qualified Matin as an HONEST, HARDWORKING person who IS LEARNING RAPIDLY following difficult times.
Now recently some other new external persons accepted to have their names associated with Veltex and Matin (I assume they did minimum staff work before getting on board):
1- http://www.americanteachers.com/agencydisplay.cfm?all=yes&agency=34 ... Jameel Asmad accepted to join Matin and his company.
2- http://www.annetahim.com ... This auditing firm, notwithstanding a disclaimer I did not appreciate, accepted to release Veltex's audited (???) financials on its official paper.
3- http://www.grantbettingeninc.com/aboutus.htm ... A representative of that close to 20 years old firm, accepted to go public saying things such as:
- 2003 total PROFITABLE revenues of + or - $30,000,000
- Net worth of $11,000,000
- Profit track record
- KCA has 750 employees, uses 13,000 square feet of manufacturing facility, PROFITABLE revenues of $13,000,000
- Veltex's stock is very much undervalued (mentions "story of the year)
- IT'S A REAL COMPANY
Facing a bunch of crooks gagning up to suck in $1,000,000 or 2 from naive shareholders seems much less an acceptable or credible hypothesis than accepting the one suggesting that a lonely (dreamer) Matin was if not a crook, a guy not knowing what he was doing.
I still need more to be confident that this gamble of mine (now a speculation) has become an investment, but I start to wonder very seriously ???
30 to 1 would be nice even based on the sub-penny level we were at recently ($0.007 X 30).
If the recent ongoing speculation continues for a few days, I can easyly see 5 cents or more as a short time peak and many will get their money back and ride their remaining free shares.
IF (big if right now) we can validate that the recently released news are (almost) accurate, then sky is the limit.
IF nothing comes out from the company within the next couple of week, I see our PPS falling back to the 1.5 cents range.
However, considering the disclaimed value of the Bengladesh audit, we still do not know what we realy own ... if anything.
We therefore are in full SPECULATION mode, therefore great potential for Market manipulators.
IF this endup being vaporware, I would be very surprised, considering that the recent PR activities was so specific (even being confusing). IF you want to fool everyone in view of a small profit, I have to assume that you will be a little more carefull in creating a proof usable in potential criminal accusations.
I (without knowing exactly what) think we own something but look forward to find out how much it's realy worth (capitalisation).
IF Q1 and Q2, FY2003 are soon released by the auditing firm (USA) that was involved in the last reports, having alerted them of the importance of their disclaimer considering some accusations made herein, I have to assume that the Anne Tahim firm will have been more carefull in validating what get produced under their name... unless that auditing firm is also part of the crime presumably being perpatrated (I doubt it very much).
That however may delay somewhat the potential release of these financials, the auditing firm having formally been advised of the importance to validate data coming from Bengladesh before they release it.
For the moment however, the good news is that about 30,000,000 shares are now own by shareholders carrying a cost of $0.02/share or so, where, some days ago, the shareholders only had a $0.007 cost or may be even less.
I assume many did as you did today taking their profit. As I tell my wife, today I haven't made any money (on that stock) and if it goes down tomorrow (high probability) I will not have lost anything.
I however was very tempted to sell some shares but unless we see $0.05, in as a logical context as today, I will sit on my shares.
Congrat for having cashed in your profit.
By the way, in term of broker's fee, I have a fix cost/transaction that I negociated with my broker, whatever the value or number of shares involved. That can be good or bad, function of your general type of trades.
shrotker
Following you question of few days ago (broker to deal on canadian markets), and share this info with everyone,
1- My broker (Canaccord) tells me that it's illegal for him to handle an account owned by a non-canadian.
2- Some brokers in your area should have a membership or a partnership with a canadian firm, thereby being able to handle transactions you would like to make in canadian stock markets.
If you decide to proceed and want to follow your canadian stocks you can do it, using the following sites:
1- http://www.tse.com (You can (15 minutes delay) follow up to 10 Canadian stocks (volumes and PPS)
2- http://portfoliodb.theglobeandmail.com (You can (15 minutes delay) follow all you stocks (Canadian and American).
Be sure to note that you will see values in Canadian dollars (Canadian stocks and grand total, Canadian and American) and see American dollar values for American stocks, individually and in total).
Enjoy it, our Canadian markets are doing pretty well these days.
To summarize my comments on the day:
??????????????????????????????????????????????????
222 trades and over 16,000,000 shares ??? without anymore information that those we know yesterday???
If you want to think negative you can and the same if you want to imagine a positive scenario.
Whatever the case, no logic justifies one or the other.
????????????????????????????????????????????????????
Interesting day but the fact is we know (or do not know) as much today as we did yesterday (except that today is the day before wednesday, the week day that Matin generally comes out with news).
To see an intraday high of $0.024 we have to go back to April 23rd of 2003. That's the week after non-audited financials were released ..."by error" ???
To see a volume of 25,000,000 plus shares in 3 days, we have to go back to 01/13 to 01/15 of January 2004. That's when audited (with big disclaimer) financials for 2001 and 2002 were released.
Knowing that a lot of accumulation very likely was made by some in the sub-penny range, I assume that what we see today is manipulation allowing significant profits to be cashed in by these people (some may prefer to beleive that Matin is dumping shares again. They may be right...who knows???).
The interesting part is the number of buy trades (should reach about 175 for the day) worth $1,200 or so on average (55,000 at + or - $0.022). I assume that this represents many newcomers to the group...hopefully to share in future great rewards.
For them and us, let's hope so.
- "Maybe the people who we think are the bad guys here, are really the good guys"
- "Maybe the good guys are really the bad guys".
That's the essence of a message board particularly relative to a non-reporting PinkSheet stock that people "speculated on".
I was not suggesting you were supporting the scam thesis.
As for your speculation, I realy do not know how he can do it ... unless normal rules do not apply to non-reporting public companies. I doubt that ...
"nothing but unsupported speculation and paranoia (hopefully I spelled that right). Let's try to stick with the facts, and not rehash over and over again the maybe's."
Very honestly, considering the source of whatever FACTS we can find and the current CREDIBILITY of the official sources we have, SPECULATION is of the essence of this situation.
Without becoming paranoïac (hopefully spelled right also) trying to layout informations and to link them together is about all we can do, trying to understand what is realy going on out there.
"I'm beginning to lose interest in following this board."
This board is the only place I found worth looking at, except for the stupid unsupported AFFIRMATION made by few imports from the other crazy board.
Let's hope Matin soon stop confusing everyone by his releases generating more questions than answers.
Remember this one ???
Since I only have the canadian stocks to work on today, let me follow up on your going back, by summarizing my thinking based on what I saw over the last 15 months or so.
FWIW let me use this opportunity to check point on my reasons not to beleive this situation to just be a scam.
The following does exclude my previously outlined "mathematical" (???) reasonning leading to the conclusion that the constantly low PPS doesn't realy fit with a scam scenario... in my mind.
I hope the following to be helpfull to those not having followed this stock as long as I have.
I, over the last couple of years, developped relationships with few people who, over time, were closer than I to Matin and, keping their names confidential on their requests, I still can share obtained information herein. You take that for whatever it's worth (we after all are on a message board) and do your own DD.
1- Business plan outlined by Matin on December 4th, 2002:
At the time, an enthousiastic (cold have written naive) presented a business plan projecting fast profitable growth of the company thru synergy between multiple complementary operations. He then wrote:
***"The combination of manufacturing, import/export, trucking and distribution give Veltex Corporation a powerful advantage. Distribution of apparel promotional products gives the company wide access to customers and allows easy introduction of additional imported product lines, while the ability to control transportation costs and delivery options can often make for a deal the customer cannot match elsewhere."
At the time, Matin planned to develop great synergy between:
- Veltex Transportation, formerly known as MultiModal Transportation (fast acquisition of trucks envisaged)
- LA CAP, the distribution and wholesaling subsidiary of apparel promotional products
- GoVacations, Inc.,a Nevada Corporation ("GoVacations adds a dimension of marketing skill particularly suited to the distribution of apparel promotional products and conventional clothing lines.")
- Velvet Textile Mills ("Veltex is presently examining the purchase of additional manufacturing companies")
Matin then summarized his grand view writing: "Veltex Corporation plans to build the company into a diversified holding company with assets in manufacturing, distributing of wholesale apparel and other goods, and trucking as well as other industries that are synergistic". He added: "Each subsidiary will be responsible for providing audited year-end financials to Veltex for inclusion in audited consolidated financials of the holding company".
2- Enthusiastic and unaware of the troubles ahead, Matin naively went to the market effectively issuing the following release: "02/18/03 Veltex Corporation Anticipates Audit Completion By March 31st".
3- One week later, still optimistic he released that: " Veltex Corporation Purchased 40 Trailers".
4- One week later he announced: "03/06/03 Veltex Corporation Announces New President" ("Roger Brunetti has been promoted from Vice President to acting President").
5- One month later, lying or still not being aware of his real situation (???) Matin came out to the market again: "04/02/03 Veltex Corporation Announces Update on Audit and Business Conditions".
6- two weeks later Veltex came out with:"04/15/03 Veltex Corporation Publishes Audited Financials for 2001 & 2002, Veltex Earns 3 Cents EPS for 2002" (Bottom line was: "Veltex Corporation (VLVT) has announced its results for the Year 2002. Total revenues for the Year 2002 were $13,770,987, up $3,816,105 from 2001, or up over 38%. Earnings per share were .03 based on roughly 35 million shares issued and outstanding"
7- 3 days later however we read: "04/18/03 Veltex Corporation Issues Clarification" ("The numbers released were the preliminary financials and the audited financials will be available to the public in about 2 weeks. Veltex apologizes for the confusion. The error was a communication mistake."
That when I seriously started to look for less directly company related sources.
8- A month and one half later, I considered that Matin finally found out that his situation was not as nice as he wanted to beleive up to then: "06/10/03 Veltex Corporation Update" ("The progress with the audit continues to move ahead but is taking longer than anticipated. So far, there have been no accounting irregularities found and everything is going as intended. Veltex has decided not to set a finishing date for the audit, but will keep investors informed as the audit is near completion.")
I then found a better source that wrote (confidenciality of his name requested):
***Sept 10th 2003, (3 months after the previous confession)"I am sure you can understand how frustrating it is to see value in a company, give excellent advice, and not have it listened to. HOWEVER, it seems Javeed is paying more attention to what I say these days and is taking some steps in the right direction."
"I believe there is lots of value in the Apparel company because Veltex is one of the few vertically integrated [textile mills/sewing shops/US distribution] companies and that is the Holy Grail of the apparel industry. Unfortunately, as he was adding the final coup, the trucking, he got 'coup-ed' ........... the trucking business is full of thieves and it cost him a LOT of money. Mostly all the money he raised through his stock. I think he has the trucking business under some semblance of control, now" (that was only 5 months ago).
My contact added: "The truth is he has little money to play with, but the apparel will, IMHO, pull him out of trouble. Contrary to what the bashers say, he is very bright and, if he knew a little more about our business and stock market cultures, he would be King of the Mountain. Unfortunately, he had some lessons to learn."
*** NOvember 4th,2003: Someone wrote me: "All I know is that the trucking company has been a BIG problem throughout 2003 and I can't tell you for sure whether that is resolved" and: "Matin is not an idiot and I believe that in two or three years the shares will be worth quite a lot. He is wonderfully creative and extremely bright. A good man to bet a few hundred on."
9- Company issues: "11/11/03 Veltex Corporation Moves to Larger Facilities". Thru our board, we were able to have someone confirm that this was a fact (however the source is a message board).
10- VLVT announced: "11/19/03 Veltex Corporation Announces New Head of Apparel Marketing and Sales". "Veltex Corporation (VLVT) announced today that Jameel Ahmad has agreed to spearhead the company's marketing and sales efforts". (His credencials are available on internet).
11- Then over the last month we got: "01/14/04 Veltex Audited Financials for Years 2001 and 2002 Show Record Increases in Revenues and Profits". "Veltex Corporation (VLVT) today released its audited financial statements showing the company had Net Income of $1,653,494 on Revenues totaling $13,902,120 for Fiscal Year 2002 representing an increase of 26% over FY 2001 Net Income and 60% over FY 2001 Revenues. Audited Net Income for FY 2001 was $1,313,839 on Revenues of $8,741,348."
Comparing these numbers to those released "by error" earlier (see point 6 above) the story is quite consistent ... except for the number of shares having gone from 35,000,000 to 42,000,000 in the interim.
Discussing these with a very experienced source of mine, I was told on January 24th,2004 that:
"it is almost impossible to start a company in the United States without 'fudging' on SOMETHING."
"Now, that doesn't mean all entrepreneurs are crooks, but it does mean that employment regulations, taxes, the large school of sharks circling all the time [investor relations, investment bankers, corporate service providers, people who make a living off suing other people, etc.] makes it very difficult to make good decisions and make any money at all."
"Matin is by no means an angel, but he is not a devil, either. For the most part, certain of his advisors painted a very rosy picture of the trucking business for him and he got badly burned" (I wonder if that caused the number of outstanding shares to go from 42,000,000 to 130,000,000 or so in 2003. After all this wass only generating about $650,000 (remember we then were looking at a PPS of $0.007 or so).
My contact ends up by saying: "He is not stupid, so he is not paying too much attention to what those people say these days. Nevertheless, everything I have said about 'cultural mistranslations' is pretty close to the mark. He just doesn't see the signs we see when dealing with people, and he also misinterprets other signs according to his culture. However, he is learning."
The above leads me to beleive that MAY BE what we look at is the story of a man that had a dream, faced grave problems, fought for his survival and is on the verge of pulling out of it.
I hope we effectively get the financials of first half of 2003 released soon (based on the above I assume we could see the promissed progress in Bengladesh but less than positive numbers related to USA operations during that time).
If the above is not only an effort on my part to justify my hope, I can imagine that the "he is learning" statement is demonstrated by the arrival of new "partners" (Jameel Ahmad and the Anne Tahim firm) and more carefull forecast of future events (Q1 and Q2 in FEW WEEKS, FY2004 in FEW MONTHS, confirmation of the LOI WITHIN THE NEXT FEW WEEKS). The last commitment was effectively met WITHIN 2WEEKS.
May be "HE IS LEARNING" after all ...
Buying them himself or having close one doing it to secure direct or almost control seems stupid to me if you effectively are only trying to conduct a scam in view of getting money from naive buyers.
If you conduct a scam, you most likely throw away shares, loose absolute control and try to get the PPS as high as possible (pushing up the buy and ask now and then) for the duration of your effort in view of collecting as much as possible, as fast as possible, before you shut down the operation with great excuses.
Matin has been at it for years and most likely collected less than few millions during that time (let's say 150,000,000 shares at $0.01 on average). All along, he incurred some expenses reducing his net proceeds and I have a hard time beleiving that this is all there was to this story all along.
I may be dreaming but I personally cannot beleive that this is all there has been to it.
I prefer to beleive that Matin is a hard worker, having a dream but learning on the job (and not listenning very well to those trying to help) making errors after errors but also succeeding somewhat in putting something together. Will he end up succeeding? Who knows.
Another scenario I "imagine" (probably trying to justify my dream) is that Matin effectively tried hard, succeeded better than obvious and accumulated cheap shares all along, creating confusion and doubts in the market so the PPS didn't grow to fast (If he wants to get funding and at the same time keep full control he must buy shares all along. A low PPS is then in his interest).
Whenever he can (short term financing becomes less required), he then let go of the stoty in a CREDIBLE manner (for a change) and the PPS becomes what we did hope for all along.
Whatever the outcome, I am pretty sure it will become known in 2004 ... hopefully sooner than later.
Very tempting, isn't it ???
Personally, I tell myself that "speculation" based on nothing verifyable got us from $0.0101 to $0.017 within days, attracting many curious traders, many of them obviously giving in to the perceived potential opportunity.
If Matin effectively comes out with the type of Q1 Q2 of FY2003 he alluded to, the observing crowd that did not yet jump in, supported by Money Manipulators could easyly push our PPS up to 4 or 5 pennies for few days.
Then I would give in and sell some shares and get my money back and ride my remaining shares to wherever this will go, having no more of MY money on the table.
On the other hand, not selling at current PPS may end up being an error but who knows???
I know (I advised them) that the local auditing firm, which accepted to put its name on the recently issued financials, will verify better what they receive from Bengladesh, before they assign their name and reputation on a next Veltex' financial report.
We should soon be better informed on the real value of both past and future reports, assuming that the Anne Tahim's firm is what it seems to be, reading their internet site.
Let us pray (if you do for this type of thing ???)
I do not know anymore how many shares are realy out there, even less taking into consideration that some, worth $0.012 were used to buy the new company (if you beleive we did).
For each $100,000 worth of shares used in this transaction would mean having added 8.5 million new shares but we do not know what was the total acquisition price of the new asset and the portion paid in cash and the one paid in shares. Another one of these great enlighting news release by the company. Matin's objective would be to secure as low a PPS as possible (nice scam???), he would not behave any differently ???
Another interesting question effectively relates to how Matin succeeds in keeping his total control of the company, considering the number of shares he didd issue over the last year ???
I sincerely have no clue what this guy is doing but, whatever it is, he certainly succeed in keeping everybody in total darkness relative to what Veltex is all about.
As for the presumed new buyers, I can only assume that they are traders playing for percentages of a penny, trying to make $100 profit now and then. In my view, $0.0152 or $0.017 PPS is either ridicusly high (if this is a scam) or much much to low (if what we are told is only half right).
Honestly, having been very much involved in stock markets for over 10 years, I never saw a stock for which I could not have any serious opinion ... ONE WAY OR THE OTHER ... right or wrong.
You realy want to know if Veltex is a stupid scam or the best potential gainer you ever saw??? FLIP A COIN! This is not an investment, it not even a speculation it's a GAMBLE if I ever saw one.
To start with let me address: "Hey Roger, do you know if I can open an account with a Canadian Broker so I can trade on the TSE on US holidays?"
I didn't know you needed one. I trade both in Canada and U.S. and have no american broker. If you realy need one I will ask my broker at Canaccord what can be done.
Second, it seeme more logical to me to do whatever is needed to get credibility thru appropriately audited financials and normal reporting than to keep issuing millions of shares at prices presumably not representing the facts.
However, if facts are not what we are lead to beleive, issuing millions of shares hoping to exploit possibly "unlimited supply of fools in the world" may be the preferred strategy. Quite a lot of trouble to only steal few millions (minus required expenses) and run the risk to be arrested.
Up to now whatever scenario one wants to beleive is acceptable.
All we have right now is information coming from the company, information that is not normally reported to SEC. Additionally, recently we got audited financials issued under the logo an apparently honest auditing firm, under the protection of a disclaimer saying that they cannot confirm finacials audited by an unnamed auditing firm in Bengladesh and not verified by the U.S. based firm.
Considering that 99% of the released financials relate to the Bengladesh operation, such a report is not worth the paper it is written on.
This being said, who knows what's realy going on out there ???
Personally, I beleive that the spique of friday probably was caused by Money Manipulators and some traders (insiders included) having accumulated cheap shares over the last few months and behaving so they can suck in new speculators. Almost 100 trades worth on average + or - $1,500/trade leads me to beleive that that's what we saw friday.
I also need credible and verifyable news before I interpret this type of PPS growth, as a sign that what we have been told (and I do not mean necessarely supplying rapidly majors in the industry) is for real.
I recently advised Anne Tahim that the next time they issue audited results (presumably Q1 and Q2 of FY2003) they should make an effort to validate what they get from those presumably auditing the Bengladesh operation. After all, up to Year end 2002, that's where all reported activities presumably were going on and disclaiming audited numbers as was done the last time is the same as saying that "we do not know what the value of the audit was, assuming an audit there was". Curious behavior for a presumably serious auditing firm ???
I for one beleive that there is something behind my shares but I doubt that this something is as great as we were lead to beleive in January. Considering the on-going capitalization ($0.017 X 200,000,000) to still be in the $3,000,000 ballbark, I obviously am not the only one having serious doubts (I assume that, if the last release was true, using shares to pay for an acquisition, Veltex probably is running out of authorized shares to dump).
Let's see what the next events will show. In anycase, our shares were only worth half a penny not that long ago.
Personally IF SOMETHING IS EFFECTIVELY BREWING, I would expect it to be related to the release of Q1 , Q2 of FY2003 having leacked to some ... IF SOMETHING IS EFFECTIVELY BREWING... I hope there is...
Till we know more my assumption is that we witness the effect of actions by MM's, manipulation, daytraders and speculators ... hoping to be wrong...
I hope you are not going to start analyzing every moves of the PPS and keep saying I try to buy ..., I got ..., and so on analyzing every moves of the money managers and level2 and so on.
I have been on boards where dozen of such messages are being posted (most of them outright lies and the contribution on pumpers) and it renders a board quite Borring!
I beleive freedom of speech but would prefer you doing that on the other board.
Thanks!
Something must be up????
No doubt about it... but what the heck is the definition of "Something"?
Manipulation?
Leack of a good news in the works?
Speculation?
It could be any of the above and only time will tell ???
I sit on my shares and wait ... in any case, I am now used to it.
Wouln't it be nice if ???
I personally wanted to answer him, whoever he is and whatever his agenda, for two reasons:
1- He did try to present some kind of argumentation instead of doing as many and just plugging in "Matin is a crook" or "VLVT is a scam" type statements.
2- The answer was available to all to read.
I tought his questions were valid (since we do not have answers yet) and had to be addressed somewhat making it clear that presently no one can say herein what this is realy all about. We can argue on the importance of our perceived risk but we cannot be affirmative one way or the other.
Let's be honest, anyone can justify beleiving that this is a jewel in development or a stupid scam (1 penny per share).
This thing has been going on for 5 years but I think we should be able to figure out what it's all about within 2004 ... hopefully.
Once again, only Matin knows.
As for how easy it is to fool everyone, history shows that it is very easy, The problem is crooks look the same as honest people. Had we had this discussion before 2004, I would have said that the odds that Matin was a crook were 3 to 1 that he was.
However, considering whay came out since, including the disclaimed endorsement of an identifyable auditing firm, I now beleive the odds to be more like 50-50. Whenever FY 2003 financials are available (within weeks for Q1 and Q2 and few months for FY if we beleive what was previously said) we should be able to know better.
Till then, I personally beleive that their is a company behind our stock but, for the moment, only Matin and God seem to know what it's realy worth.
This being said, I presently look at this as a 50-50 bet with small downside risk and high upside potential.
Who knows?
This question seems to be impossible to answer HONESTLY ... unless you are in the pants of Matin. The fact is nobody (not even the U.S. based auditors) can tell you with certainty what this affair REALY IS.
Either it's a scam that, from here on will cost shareholders $0.01/share or it's the best kept secret that may end up returning 100 for 1.
Anyone (but Matin) presently being affirmative one way or the other is either lying or taking his desire as a reality.
Personally, a "Bet" or "gamble" offering a potential of 50 or 100 to 1 makes me HOLD on my share but I would not buy anymore.
If I had no shares and knew what I know (beautiful COMPANY GENERATED releases) I could chip in a few $$$ (close to 100 shares per $$$) just in case.
Even the audited report in disclaimed in a way that makes it hasardous.
If you get involved, place your "bet", keep your fingers crossed and pray.
If you want to play it safe, wait and see if, assuming the best, reliable and credible information becomes available. Then you could buy at higher price but reduced risk (no such thing as a no risk situation in stock markets ... even less if the said stock is a pinksheet one.
GLTY
Realy curious.
We presumably have some kind of profitable business behind our shares, shares are being traded by the millions and PPS doesn't move ???
Whatever way I look at it, this situation makes no sense whatesoever.
I wonder when we will endup finding out what is realy going on behind the doors at Veltex ???
Some beleive Matin is a crook conducting a scam. May be, may be not.
If so then the accounting firm that accepted to sign the recent audited report, NOTWITHSTANDING DISCLAIMERS, had to accept to help him blindly ??? I just wonder what for? How much would they have obtained to accept to tarnish whatever reputation they have?
If it is as nice as recent releases suggested, what do I miss. Granted the presumably availabel assets are in Bengladesh but are they realy worth nothing or close to nothing.
My broker says that Pinksheet stocks, even worse of a non-reporting company are all gimmicks for suckees and I sometime wonder if he is not right.
Just hope we see the bottom of it soon ... whatever it will be...
I wonder when (if ever and possible) Matin will figure out that something has to be done for him to stop unduly diluting himself (and us) by dumping shares at PPS "presumably" totally non related to the stories he keeps putting out?
I wonder when he will work toward becoming somewhat credible with the market?
Considering that many around him do own millions of shares, I wonder how come no one can help him behave so credibility of his releases is establihed.
The following must disturb him and generates questionning worth finding answers to.
1- CITY OF INDUSTRY, Calif., Jan 14, 2004 /PRNewswire-FirstCall via Comtex/ -- Veltex Corporation (OTC: VLVT) today released its audited financial statements showing the company had Net Income of $1,653,494 on Revenues totaling $13,902,120 for Fiscal Year 2002 representing an increase of 26% over FY 2001 Net Income and 60% over FY 2001 Revenues.
On that day the PPS went:
- Open $0.007
- High $0.015
- Low $0.007
- Clos $0.013
- Vol. 15,713,400
2- CITY OF INDUSTRY, Calif., Jan 22, 2004 /PRNewswire-FirstCall via COMTEX/ -- Veltex Corporation (OTC: VLVT), as part of its expansion of Veltex Apparel, announced today that it has signed a Letter of Intent to purchase KCA Garment Industries of Dhaka, Bangladesh, one of the largest shirt manufacturers in the Dhaka area with revenues in 2003 of $14.1-million and in 2002 of $12.7-million.
On that day the PPS went:
- Open $0.011
- High $0.012
- Low $0.009
- Clos $0.011
- Vol. 4,908,600
3- CITY OF INDUSTRY, Calif., Feb 4, 2004 /PRNewswire-FirstCall via COMTEX/ --Veltex Corporation (OTC: VLVT), announced today that its subsidiaries, Veltex Apparel and Velvet Textile Mills, have completed the acquisition of KCA Garment Industries of Dhaka, Bangladesh in a cash plus stock deal.
On that day the PPS went:
- Open $0.013
- High $0.013
- Low $0.01
- Clos $0.013
- Vol. 1,862,000
Today as of 11h30 our PPS varies between $0.0101 and $0.012.
A total capitalisation of about $2,000,000 for a company such as the one described above makes no sense whatsoever and the message must get thru to those shareholders owning millions of shares and having access to Matin.
Obviously, the credibility of the audit (and the firm that signed on it) is being questionned right now. The beleif that something outstanding is going on in Bengladesh is far from being existant right now.
I realy wonder what causes Matin and his close ones not to react to an unacceptable situation ... unless they, for whatever reason, prefer to accept being accused of being theives and criminals.
Till Veltex find a way to become credible, they can release whatever they want, but new ressources (reputable, credible parties) will have to be found so people start having positive instead of negative doubts.
Short of addressing the credibility issue, our PPS will remain what it is forever.
Note: being on Pink Sheet market is not great but some "credible outfits did succeed having their PPS grow being listed on this market. Therefore, this "excuse" is secondary if valid at all.
For once that you say something I can agree with, I decided to acknowledge it ... You definitely do not sound as "rocket scientist".
Personnaly I would like to see you a "rocket passenger" being sent to Neptune ... one way trip!
Very valid questions.
That is one of the causes of Matin's lack of credibility (therefore negligeable positive impact on the PPS, whatever the news). Almost every time he issues a PR, we end up having more questions than anwers therby playing in the hands of "the 3 or 4 non stockholder naysayers who wish to see Veltex's demise, at our expense".
Also whenever he tries to be specific, committing to deliver something, he misses the committed target date. There again, he calls for "frantic, misleading, and negitive postings" you refer to.
I do not know for sure what we hold or even if we hold anything at all but I hope someone succeed in educating Matin on how to communicate credibly with the market.
"The company plans to release preliminary financials for the First and Second Quarters of 2003 shortly. The full year 2003 numbers ... will be released in a few months".
All we realy know from that is that "shortly" seems to be faster than "a few months" and it hopefully measures in term of few weeks.
In any case, at this point in time, I give Matin the benefit of the doubt and try to beleive that he still tries hard to create a worthwhile business after major setbacks in his "trucking venture" of 2003.
Whatever is realy going on behind the walls, we must notice that we got a weekly update of some kind every week over the last 3 weeks. I just hope this will end up being the beginning of a process aimed at regularizing the situation of the company.
It will soon be 5 years since I (as many) bought my first shares in this company. It seems to me that time to see return is getting overdue ???
????????? EOM
To help support the waiting...
WHY GOD CREATED CHILDREN (AND IN THE PROCESS GRANDCHILDREN)
To those of us who have children in our lives, whether they are our own, grandchildren, nieces, nephews, or students...here is something to make you chuckle.
Whenever your children are out of control, you can take comfort from the thought that even God's omnipotence did not extend to His own children.
After creating heaven and earth, God created Adam and Eve. And the first thing he said was "DON'T!"
"Don't what?" Adam replied.
"Don't eat the forbidden fruit." God said.
"Forbidden fruit? We have forbidden fruit? Hey Eve..we have forbidden fruit!!!!!"
"No Way!"
"Yes way!"
"Do NOT eat the fruit!" said God.
"Why"
"Because I am your Father and I said so!" God replied, wondering why He hadn't stopped creation after making the elephants. A few minutes later, God saw His children having an apple break and He was ticked!
"Didn't I tell you not to eat the fruit?" God asked.
"Uh huh," Adam replied.
"Then why did you?" said the Father.
"I don't know," said Eve.
"She started it!" Adam said
"Did not!"
"Did too!"
"DID NOT!"
Having had it with the two of them, God's punishment was that Adam and Eve should have children of their own. Thus the pattern was set and it has never changed.
BUT THERE IS REASSURANCE IN THE STORY!
If you have persistently and lovingly tried to give children wisdom and they haven't taken it, don't be hard on yourself. If God had trouble raising children, what makes you think it would be a piece of cake for you?
THINGS TO THINK ABOUT!
1. You spend the first two years of their life teaching them to walk and talk. Then you spend the next sixteen telling them to sit down and shut up.
2. Grandchildren are God's reward for not killing your own children.
3. Mothers of teens now know why some animals eat their young.
4. Children seldom misquote you. In fact, they usually repeat word for word what you shouldn't have said.
5. The main purpose of holding children's parties is to remind yourself that there are children more awful than your own.
6. We childproofed our homes, but they are still getting in.
ADVICE FOR THE DAY: Be nice to your kids. They will choose your nursing home one day.
AND FINALLY: IF YOU HAVE A LOT OF TENSION AND YOU GET A HEADACHE, DO WHAT IT SAYS ON THE ASPIRIN BOTTLE:
"TAKE TWO ASPIRIN" AND "KEEP AWAY FROM CHILDREN"
In case the following is of interest to you...
Short Sellers Beware: The End Is Near
February 04, 2004
Sweeping changes are taking place in the world of short selling. Last month the Securities and Exchange Commission (SEC) approved amendments to NASD Rule 3370 that expanded the scope of the affirmative determination requirement to include orders received from non-member brokers and dealers. What this means is that naked shorting may cease to exist on the scale that it currently enjoys. All of this may seem vague and unimportant for most of our readers. You might be thinking what's the big deal because shorting is not something that pertains to your trading or investing strategies. After today's edition we think you will change your mind.
What Is Short Selling
Let's begin with the very basics. Short selling is the selling of a stock that the seller doesn't own but promises to be delivered. A short seller typically borrows stock from a broker to sell it into the market, betting that the share price will fall so that the shorter can buy the stock back at a lower price. Selling short is the opposite of going long.
When you short sell a stock, your broker will lend it to you. The stock will come from the brokerage's own inventory, from another one of the firm's customers, or from another brokerage firm. The shares are sold and the proceeds are credited to your account. Sooner or later you must "close" the short position by buying back the same number of shares (called "covering") and returning them to your broker. If the price drops, you can buy back the stock at the lower price and make a profit on the difference. If the price of the stock rises, you have to buy it back at the higher price, and you lose money.
Most of the time, you can hold a short for as long as you want. However, you can be forced to cover if the lender wants back the stock you borrowed. Brokerages can't sell what they don't have, and so yours will either have to come up with new shares to borrow, or you'll have to cover. This is known as being "called away." It doesn't happen often, but is possible if many investors are selling a particular security short.
Since you don't own the stock (you borrowed and then sold it), you must pay the lender of the stock any dividends or rights declared during the course of the loan. If the stock splits during the course of your short, you'll owe twice the number of shares at half the price.
Since you are being loaned the stock, you are buying on margin. In fact, you have to open a margin account to short stocks. Your broker will charge you interest on the loan and you are subject to rules of margin trading. This all sounds easy enough but keep in mind that most U.S. brokerage firms will only allow shorting of stocks that are above $5.00 per share because most brokerages will not allow margin on any stocks under this amount. Thus, it is widely assumed by retail investors that stocks under $5.00 and bulletin board stocks are not shortable. This is true for most people but there is a large loophole in the system.
The Loophole
Until the recent amendment, non-NASD members, like specialists, option markets and foreign brokers, weren't covered under the affirmative determination rule. This rule requires that no member or person associated with a member shall effect a "short" sale order for any customer in any security unless the member or person associated with a member makes an affirmative determination that the member will receive delivery of the security from the customer or that the member can borrow the security on behalf of the customer by settlement date. Non-NASD members didn't have to represent to the NASD broker through which they conducted a short sale order that they would be able to deliver the stock by settlement date.
It's often impossible to borrow the shares of companies trading on the OTCBB so investors and hedge funds looking to take negative bets on these stocks have traditionally been trading through Canada where it's not required to borrow stock before selling it short. The practice is known as naked shorting.
Naked shorting has caused some serious problems for companies trading on the bulletin board. It is a slippery slope that may eventually destroy a company's ability to raise capital. Take a scenario where a scrupulous hedge fund or short selling group decides to naked short a bulletin board company into oblivion. Since no shares have to be delivered, shorts may "hit the bid" until the stock hits zero. Perception is reality so shareholders will see the decline and naturally think that something is wrong and liquidate their positions causing a downward spiral. The shorted company will then be unable to raise any capital because their stock is worthless due to the shorts and not because of fundamentals.
Have you ever owned a bulletin board company or any stock under $5.00? Then you may have experienced shares of your company beaten down by shorts and not even know it.
Conclusion
We applaud regulators for amending the affirmative determination rule. The new NASD rule makes it the responsibility of U.S. brokers trading with non-members to make sure that their counterparts will be able to settle a transaction before completing a short sale. This should dramatically reduce the "naked shorting" that is occurring in the sub $5.00 and bulletin board world.
The SmallCap MarketWatch is not anti short selling across the board. On the contrary, we think shorting is healthy for the market to hold valuations in check when optimism gets ahead of fundamentals. However, it is not acceptable when shorts possess a mechanism to endlessly drive a stock into the ground that creates an imbalance that can hurt shareholders.
What do you think about the amendment to rule 3370? Let us know and you may win one of five copies of Kathryn Staley's The Art Of Short Selling. In our opinion, this is one of the best books on the topic.
Please send any and all comments to editor@smallcapmarketwatch.com
This thing starts looking serious ???
However, required for our PPS to take off (assuming this is effectively what it seems to be),
- releasing audited FY 2003 financials (hopefully showing some progress in USA),
- identifying who audited Bengladesh financials,
- normally reporting and
- getting listed on a real market
are steps required for Matin to get required credibility to make his (our) PPS represents what we presumably own.
A lot of work ahead for Matin but the year is still pretty young.
I hope he soon (right after issuing 2003 financials),
- starts to come out publicly and
- presents a beleivable NEW business plan.
For the moment, I remain with two main concerns, notwithstanding the recent apparently extremely good news:
1- Matin seems much to slow working toward establishing his credibility in the market (lacks tranparency),
2- Matin seems to continue to accept financing his claimed activities with apparently (if everything he released is true) baddly undervalued shares ("KCA will receive VLVT common stock"). He thereby dilutes us and himself unnecessarely and that behavior does raise valid questions.
For me and many others, to finally give him my/our confidence once and for all, Matin will have to seriously address his obvious major "credibility issue" with the market (by the way, I must say that the dumbazzes continuously posting unsupported affirmations have no influence whatsoever on my beleif).
The market (apparently limited to those involved in our message boards) reaction following this morning release demonstrates clearly that, for the moment, whatever Matin says is taken with total disbeleif.
I hope he finds out a way to address this issue as soon as possible.
Whenever you get bored with watching our stock, watch paint dry or grass grow waiting for SOMETHING to happen, try this:
Windows media player required,
Duration 9 minutes 18 seconds,
Very nice to watch and listen to,
http://www.digitalcampground.com/sand.wmv
Enjoy!
Then you probably were more frustrated than I !!!
Frustrated? Let the pressure get out!
http://www.auburn.edu/~alamysm/pinguin.swf
My best score was 283 feet!
Let's start the week on a light note...
Wouldn't it be nice if Matin ended up being a second Vinatiery?
Blew it the first time (1999)
Missed it the second time (Dec 2002 business plan)
Made in for the win the third time.
Hi,Hi,Hi,...
May be this is what Matin was refering to in in last PR:
"Through this merger, Veltex Apparel expects to substantially reduce the cost of the finished goods it imports for resale ..."