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You expect growth without an increase in Equity?
Get real! Yes, shares outstanding has increased, but earnings have increased at a HIGHER percentage.
My research shows the following revenue breakdown:
Velvet Textile Mills 15 Million
Veltex Apparel 6.64 Million
KCA Garments 20 Million
Total 2004 Revenue 41.64 Million
Net Income increased to 6.03 Million
Now, instead of Velvet Textile selling to KCA (in 2003), and KCA selling to Target, Nike, etc. Veltex Corporation sells (in 2004) to Target, Nike, etc. Therefore, Veltex Corporation through vertical integration has cut out the middleman and can book even greater profits than before.
If you knew much about growing companies, you would realize that as sales grow, so do Inventories and Accounts Receivable. You need more inventories to keep up with demand (hence moving into a facility 5X the size of the old facility).
Prior audits backed up P.R. releases regarding sales and earnings and I'm confident that the 2003 and 2004 audits will as well. Notice how Matin's P.R.s are all about reality now? Hence, 266 new contacts. Veltex is REAL my friend!
Related information regarding bashers:
By Jack Burney
Published by OTCNN.com
If you have a nasty disposition, an undefined anger at the world in
general, and a gift for venomous verbosity, here's the perfect job for you:
Paid Basher for the MMs.
Any illusion that such tactics are beneath the MMs was shattered recently
when a Florida court issued an injunction again one of the defendants,
"Cats3," in the lawsuit filed by QuestNet Corp. (OTCBB: QNET). "Cats3"
turned out to be Jerome Rosen, senior trader with J. Alexander Securities
(ALEX), a major market making firm.
Rosen was enjoined from "publishing any false and defamatory statements
concerning QuestNet and its current and former officers, directors, and
employees in any manner," and from "interfering with any
contractual/business relationships between Quest Net and its employees,
customers, suppliers, consultants, shareholders and/or investors."
Now, InvestAmerica (OTCBB: INVT) has subpoenaed Raging Bull to identify 14
INVT-bashers who posted on RB's message boards, and is waiting for the
response.
"Purpose of the suit," said Bryan Kitts, director and secretary-treasurer
of INVT, "is ultimately to find out if any of these 14 bashers is employed
directly or indirectly by a market maker or by a member firm of the SEC or
the NASD."
If they are, as INVT expects, then ultimately, the next question is: "Is
the entity that employed the bashers responsible for the actions of its
employees?" If anyone is transmitting messages designed to enhance the
position of his employer or influence the price of the stock to the
employer's advantage, what is the employer's culpability?
....
The INVT complaint asserts causes of action alleging violations of the
Racketeering Influenced and Corrupt Organization or RICO Act, the
Massachusetts Consumer and Business Protection Act, and common law
defamation. It alleges that the defendants have conspired to post
statements on Raging Bull. The message here...BASHERS BEWARE!!
I Called Chisholm,Bierwolf & Nilson
But the lady who answered would not tell me anything because I am not an officer of the company. How are you able to get any information from them? Do you "claim to be an officer"?
PR Contact did say Audit would be Friday or Monday
I was told by the investor relations guy (909) 595-1977 that the audit is done and is being delivered by Courier today. The audit will be released to the PR firm tommorow, but it may take a day or two for it to be published. He said we should see it on Friday or Monday at the latest. This confirms what MM said on a post recently.
He told me they are "very busy". They are in the process of hiring sales people, but they want to hire people who already have established sales contacts.
I asked him "Why can't I find a Veltex logo in Target? He stated that they manufacture the garments, but Target, Nike, etc. use their own Brand lable on the garments.
George Point well taken!
But, if you were me and you bought INNO at $2.80 based on a good earnings report and suddenly the stock started dropping what would you have done? I can understand having good loss dicipline and selling at say $2.40. But I knew AEOS was doing well so I decided to stick it out. At $2.00, I saw a 1,000,000 transaction one day. I checked the S.E.c. Filings and found that an institutional investor bought more than 5% of the outstanding shares. Bingo, I knew if "smart money" was on board, I should be too and I bought more. With a little knowlege and pactience I was fortunate enough to hold for a nice gain.
VLXC needs to prove itself with a good audit, then lets see what happens.
Miami, When it comes to the Textile/Apparel Industry
You know more than me and I will listen to you. Of course I would appreciate the truth and nothing but the truth.
When it comes to Financial Statements, that's my area of expertise. I am an accountant. I'm trying to point out some positives for VLXC. You can decide to listen to me or not.
George
Overall, I would agree with you. However, pinksheet and thinly traded stocks are easier for these manipulators and MM to "play" with. I watched INNO go down repeadedly on 100 shares sales that drove the price down about 50%. I trusted the fundamentals and I bought more at $2.00 a share.
Within two months I was greatly rewarded with over a 100% profit. With INNO, I knew their customer AEOS was doing really well.
Hang in there Texastex
I know you are taking a lot of grief from these guys. I'm staying the course. The Financial Statements from the Auditor in Diamond Bar and Anne Tahim have some minor errors in them, but nothing that says "scam". Anne Tahim may have overstated income by $78,400 in 2002 as this dollar amount of common stock was issued for services in 2002. Instead of 1.65 Million, the true number may be 1.575 Million for 2002 net income. The Diamond Bar CA. audit firm Aaron Sherman & Associates audited all the divisions of Veltex Corporation. Matin changed to Anne Tahim probably because see was a bigger firm and A.S.A. made a mistake of not understanding the Bangladesh "tax holiday" and thus overstated accounts payable and understated "Retained Earnings"-Restricted-tax holiday.
Why am I bringing this up? These auditors have been bashed hard and yes they made some errors. However, as long as they verified cash and accounts receivables, and ALL auditors do, VLXC IS Profitable! Cash flow IS VERIFIED And it proves profitability!
I would not be surprised if the recent additional shares are for a new acquisition. It makes sense to me that Matin would not release any news on it until the audits are complete. Also to keep the growth rate high, one or more acquisitions are probably necessary. Hopefully, Gidget will take off and the e sales will start working better!
Miami the official Fear Generator:
I talked to this person, that person. I said __________.
You said you taked with Anne Tahim in one post, but later said Anne Tahim never returned your call or email.
Freedom of speech does not = Freedom of Truth.
KCA was a private company for 13 years employing 750 hardworking people. Veltex acquired them in early 2004 and now is using both the VLXC distributors and KCA distributors. This acquisition has also "cut out" a middleman boosting profit margins. There is no way KCA could stay in business for 13 years if they were not making a profit. They were a private co. get it? No stock sales! KCA is one of the largest shirt manufacturers in the Dahka region.
I think the only truth you ever told about VLXC is that Matin paid 80% of Velvet Textile Mills. The Anne Tahim audit said that VLXC is the "Majority" shareholder of Velvet Textile Mills. So as of 12/31/02, that may have been true.
Fear Factor?
I see, Fear is a part of the investing "game" isn't it?
Through the deal, Velvet will produce woven textiles for KCA to manufacture into shirts, pants and other garments, cutting out middleman costs.
Veltex Apparel, in turn, will import and distribute the garments, further cutting costs and resulting in a price advantage for the corporation.
Miami,
Let's face it, you say alot of things that just don't add up. Sorry for whatever caused you to be so mad at Matin. Why spend you whole life trying to get "even"? I know you say you are trying to help people, but really you just want us shareholders to suffer more pain. Why????? I guess you get some satisfaction seeing more new investors give up and sell. Matin is growing a profitable business. Why don't you do the same since you know so much about this business?
CHINA: Many countries Still Cheaper For Clothes - Research
23 Feb 2005
Source: just-style.com
China, as many predicted, has dropped its clothing prices since the US, EU and Canada removed quotas against it on January 1. But competitor countries – all a lot nearer its main markets and some actually in the EU – are still cheaper according to post-quota data.
An analysis of the EU’s import licence scheme in the February edition of ‘The Source,' a monthly apparel industry newsletter published by UK-based apparel sourcing consultancy Clothesource, shows that in almost every category of clothing, China’s cuts this year are so limited that even some EU members now still undercut China for some clothes categories.
“China was always a relatively expensive place to buy clothes from,” said Mike Flanagan, Clothesource CEO. “For instance, in autumn 2004, T-shirts arriving in the EU from China were 168 per cent more expensive than from Bangladesh, which had no quota limit and wasn’t subject to import duty.
"Chinese T-shirts for shipping to Europe are now 35 per cent cheaper than they were a year ago. But that still makes them twice the price of T-shirts from Bangladesh. And China’s still being undercut by other countries in suits, coats, trousers, underwear, dresses, blouses, shirts, sweaters, socks – every apparel category except formal men’s jackets.
“And reports of the death of the rest of the world’s apparel industry are very much exaggerated. Socks cost Europeans 72 per cent more in China than in Egypt. The Chinese are going to have to sharpen their act a lot more before many Europeans are going to go all that way to pay twice as much as they can in their own backyard.”
Sam Do you still own 2,000 Shares?
No offense, but why would you hold them if you thought this co. was a scam?
If you are not short why are you bashing?
Do you want me to sell shares to you cheap?
I'm not selling PERIOD.
P.E. update 1.67
I would think short sellers would be more interested in P.E.s of say > 100!
Thanks for the update!
I have no problem with actual facts!
If they announce an acquisition soon, we will all know how many shares they paid. If not, there are many reasons why shares might be issued. Some bad, some good.
More details on the KCA Acquisition if you are interested.
USA: Veltex Signs Letter Of Intent To Buy Bangladeshi KCA
23 Jan 2004
Source: just-style.com
Apparel, textile and transport group Veltex Corporation has signed a letter of intent to purchase Bangladeshi shirt maker KCA Garment Industries.
The California-based company, which counts KCA as a customer, hopes to reduce the cost of finished goods imported for local resale as a result of the acquisition.
As part of the prospective sale, for which financial details have yet to be finalised, Veltex will inherit KCA’s long-standing customer relationships with distributors and buyers.
KCA is one of the largest shirt manufacturers in the Dhaka region with 750 employees and total revenue of US$14.1 million in 2003.
The company sources denim, khaki, twills and pinpoint oxford fabrics from Veltex subsidiary Velvet Textile Mills.
USA: Veltex Buys Bangladeshi KCA Garment Industries
05 Feb 2004
Source: just-style.com
Veltex Corporation subsidiaries Veltex Apparel and Velvet Textile Mills have acquired Bangladeshi firm KCA Garment Industries in a cash plus stock deal.
The purchase, for which Velvet Textile Mills will supply the cash portion, is expected to make Veltex competitive in the lucrative membership warehouse store and mass merchandiser marketplace.
Through the deal, Velvet will produce woven textiles for KCA to manufacture into shirts, pants and other garments, cutting out middleman costs.
Veltex Apparel, in turn, will import and distribute the garments, further cutting costs and resulting in a price advantage for the corporation.
KCA will also receive common stock as part of the deal.
US assistance for RMG sector growth sought
Chittagong Bureau
CHITTAGONG, Feb 27:–Minister for Commerce Air-Vice Marshal (Retd) Altaf Hossain Chowdhury said here yesterday that the ready-made garments (RMG) had become the largest contributor to the national economy sharing 76 per cent of the export earnings.
He said that the garment factories had not only earned foreign exchange but also created employment for the backward segment of the society.
He was addressing as the chief guest at the inaugural ceremony of the Chittagong Apparel Fabric & Accessories Exposition (CAFAXPO) 2005 held at city’s CJKS indoor stadium this morning.
President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Annisul Huq presided over the function.
He sought all-out cooperation from the US envoy in Dhaka Harry K Thomas Junior for attaining duty-free access of Bangladeshi garment products in his country.
He hopped that the manufacturers and exporters including representatives of buyers would benefit from their participation in the CAFAXPO-2005.
While addressing as the special guest the US Ambassador to Dhaka Harry K Thomas junior said that only this business, the backbone of the national economy, could change the Bangladesh in a positive fashion.
Appreciating the emerging sector he said that the garments industry had created job market for women all over the country and changed the earning power of countless families in this country.
He added that the United States government would stand by the local business leaders in promoting the rule of law, transparency and infrastructure development.
He also said that a Trade and Investment Framework Agreement (TIFA) between Bangladesh and the United States would soon be signed that may gives a forum for sharing trade information, explore and address the scopes and hindrances.
“I’m eagerly awaiting to see Bangladesh’s continuous progress during my tenure here,” he added.
I think you are right King!
Having a well known, good looking actress as a model for Gidget is a great idea. This could be great for future sales growth!!!!!!!
Miami Since you know so much, What is kCA's phone # in Bangladesh?
You should know this and you should not be afraid to give this number out if your facts are real.
I would like to call KCA myself.
Please let me know their number!!
G & V
I'm not selling!!
KCA Ownership and additional shares-Some Thoughts
I am no insider, so I don't know the facts. But, I can think of possible ways the K.C.A. Garments acquisition occured.
1) Follow the sales! VLXC sales increased dramatically in the first quarter of 2004. The acquisition did at least begin in early 2004.
2) I'm not a lawyer, but don't a lot of companies assign performance goals along with the total acquisition value? Let's say VLXC pays $2 Million cash up front no matter what. They had to invest 1.8 Million due to the Bangladesh "tax holiday anyway". Either they reinvest or they pay taxes, so reinvest is a good answer.
3) K.C.A. probably would rather have 1.9 Million shares at about $2 per share than 190 Million at $0.02 I would think. So, let say K.C.A. meets the sales goal after six months, so they are awarded the shares. They are given the shares post R/S.
4) Matin probably didn't give up 50% ownership, so maybe it goes something like this.
6.8 Million Total Outstanding
3.45 Million Matin
1.9 Million K.C.A.
1.45 Million (float) Us Individuals
5) Perhaps some of the nearly 5 million shares were used in 2004 were to convert debt to equity and the other part were issued to K.C.A.
Just my thoughts, I don't know, but this makes sense to me.
Anyone notice what ABLE did after getting on a major exchange?
ABLE was less than $2.00 2-3 months ago, now just after getting listed on NASDAQ small cap, it's trading for $12.10!
I'm not saying ABLE is a good buy right now since I would say it's extended. Look at the possibilities for VLXC if they get listed on a major exchange. Yes, they have work to do and no I'm not saying VLXC will necessarily be $12.00. However, VLXC makes more $ per share than ABLE.
Institutional investors most often can't buy a stock until it files it's form 10 and has audited financials.
IMHO VLXC has been manipulated and bashed to keep the price down for big investors until they get a chance to buy in. VLXC really does make money. Cash flow proves it, you can't fake bank account balances. Accounts Receivable balances also can be verified. Trade receivables show that a factor also believes in the A/R. Recent posts regarding distributors (Sears) also add up nicely for me !!! Good Luck !!!!!
Very nice work TEXASTEX !!!!!!!!
Sears!! Oh the bashers might think Sears is a scam too!!!!!!!
I'm going to buy more on Monday!!!!
YES!!!!!!!!!!!!!!!!
Just an Individual Investor Miami!
Plain and simple. I just try to do my homework that's all.
I've never seen or communicated with Matin in any way.
Should I post the Financial Statements?
I was thinking about posting the Financial Statements for 2002 here. I have all the statements on an excel spreadsheet and they all balance.
I just don't know if I should post it now, or wait until the audit is done.
I'm not afraid of Full Disclosure.
Miami if you even bothered to look at the Anne Tahim 2002 audit, you would clearly see that Loans payable from stockholders as of 12/31/02 was $3,195,517. That is the "Related Party Payable" that I was taking about.
Funny how these bashers have nothing to back up their claims.
Personally, I'm glad that Matin is a "tight wad" who doesn't waste money on expensive office furniture. He also don't get a big paycheck judging by the income statement. He is not like some C.E.O. that give themselves millions of dollars in salary.
As far as dillution: $6.03 Million earnings / 6.81 Million Outstanding shares = $0.89 eps. $1.26 stock price / $0.89 eps = 1.4 P.E. Is a 1.4 P.E. too high? You want the P.E. to be less than 1?
This link proves Veltex and KCA Garments are registered in Bangladesh!
To be registered companies must provide alot of documentation to the Bangladesh Government. Notice how KCA Garments has been in business since 1991. I'm not making anything up like the bashers do.
http://roc.gov.bd/search1.asp
Are all these distributor's scams too?
http://www.alibaba.com/company/10208826.html
http://207.122.589.com/miragemarketingco/bagsearch.htm
http://www.imprinteditems.com/ProductSearch/PSLineResults.aspx?DPSV_Id=132666&CATY_ID=&pF=&a...
http://www.promopeddler.com/Search.php?offset=524&go=20&cat=Shirts&un=1
http://207.122.589.com/cgi-bin/products.asp?asi=93505&footer=&cat=Clothing&pt=All&py...
http://www.promotionalproducts-promotionalitems.com/products/totags.html
http://www.fapromotions.com/product.asp
Maybe the Auditor's wanted VLXC to pay off debt
Seems the additional shares were issued after the auditor was hired on 9/28/04. Would it be too hard to imagine that the auditor wanted any loose ends with regard to ownership and "related Party Debt" taken care of? Yes, this is speculation on my part. I'm willing to let you know when I'm speculating. Most of the time, I post links to prove my point.
Why did you bring up an old lie on your post on RB in November 2004? Did you sell and you hated to see the price keep going up? Did you short in the hopes the price would go down?
I don't try to hide where I'm coming from. Why do you?
FYI Average Growth rate is 16.24% for Bangladesh Apparel
http://www.bgmea.com/data.htm
Fiscal Year Wise (value in Mn. US$)
Year
Export in Mn. US$
Y-O-Y Growth Rate (%)
1990-91 866.82
1991-92 1182.57
36.43
1992-93 1445.02 22.19
1993-94 1555.79 7.67
1994-95 2228.35 43.23
1995-96 2547.13 14.31
1996-97 3001.25 17.83
1997-98 3781.94 26.01
1998-99 4019.98 6.29
1999-2000 4349.41 08.19
2000-2001 4859.83 11.74
2001-2002 4583.75 -5.68
2002-2003 4912.09 7.16
2003-2004 5686.09 15.76
Average Growth Rate : 16.24
Source : Export Promotion Bureau (EPB)
Rawnoc don't wait too long before you get back in !!!!!!
On second hand, I hope you miss the run up!!
Why else would you be "hanging around". To HELP us?
When you are in, will you be pumping too?
Like most bashers, you are not here to help honest, longer term investors.
SHORT and BASH! SHORT and BASH!
You have been successful up to this point though.
I can't wait until the stock "opens" a buck higher! If you wait until the news is out, you will be too late!!!
Paul, yes I see your point
The audit of 2003 has been delayed. I agree with King that the auditor probably wanted to wait until 2004 year end, then verify bank balances, accounts receivable, cash flow etc. Then, after a balanced set of books was attained, he/she could then effectively "back into" 2003 numbers by taking the end of 2004 balance sheet, subtract 2004 income statement and have the end of year 2003 balance sheet calculated.
In my opinion the delay is actually a positive from the standpoint that the auditor is exercising due diligence.
You also can't predict exactly when someone will answer the auditor's questions? Remember, the auditor sends questions to banks, suppliers, customers, etc. He/she will not complete the audit until they receive all or nearly all of the responses.
Hi Texastex Welcome aboard
I am long in this stock and I'm looking forward to the next few months. With a P.E. of 1.36, Book value of $2.82, this stock SHOULD go higher with any positive development.
There are quite a few professional short sellers in this stock. Unfortunetly, they make money by cleaver, detailed lies that lead new investors to sell. They tell these lies over and over again until they convince themselves it's the truth.
Without question, this stock is making money and is cash flow positive. You can't fake cash flow, bank accout balances, etc. but that doesn't stop them.
In 1999 the company did have a US audit done. The auditor went to Bangladesh and spent a month looking at everything in detail. Guess what happened? Bashers trashed the auditor.
Some research into the bashers show that they are BIG! there are GOOD small companies that are being killed by these bashers that wrap themselves in the American flag and pose as concerned citizens out to save the poor investors!
Miami - What stocks do you own?
Here is where VLXC purchased the trailers:
Southeast Trailer Mart
4936 Moreland Ave
Ellenwood,GA 30294
404-361-6411
I thought you said she (Ann Tahim) did reply to you?
Which is the correct answer? Did she say she was "duped" or did she not respond? You claim both????????
You think Ann Tahim would sign her name
And not verify bank balances?
Not verify Accounts Receivable (A/R)?
Not verify Accounts Payable (A/P) ?
Not check internal controls?
Make sure segragation of duties exists?
Not statistically sample Sales?
Oh by the way, why did Matin hire an accountant in Utah to audit 2003 and 2004? Why would he hire someone in the same state that his company is registered in? Isn't Matin a large shareholder? Doesn't K.C.A. garment Industries want to see their 4,000,000 shares appreciate in value? Doesn't the present auditor know the he faces scrunity? Matin is "ALL IN". Remember, he know more about this company than ANY of us!
If he is willing to risk it all and he knows the odds, why shouldn't I risk some money too? I like HOUSE ODDS!!
Audit provides more proof than you think
Miami, you must know something about how auditor's go about auditing a company don't you?
1) They send self addressed stamped envelopes out to all banks, all the people listed in the Accounts Receivable subsidiary ledger, etc, etc.
2) I have trust in accountant's because they get the information directly from the source, not from management. In my job I occasionally receive requests from auditor's to list A/R balances, A/P balances, credit references, etc. I sign with the understanding that I face criminal charges for erroneous information.
3) Auditor's have many tools available to them to go at numbers backwards and forwards. If things are not "reasonable" that would raise a red flag. I.E. A.R (Which is verified should be a certain percentage of sales). I've said before that VLXC's audits proved "reasonable" A/R to sales numbers.
4) Cash flow if a very effective tool.
Now, I'm sure you can bad mouth auditors and all of that, and audit's might not be perfect, but they can show actual bank balances, actual fixed asset purchases, actual A/R balances, and many other things that I don't have time to explain.
Snow the jury is still out
Miami could be right that Matin overstated original equipment costs. But, even his numbers vary. One time, correct me if I'm wrong, he said equipment purchases in 1996 was only $25,000. Later, he said Land was $125,000, Machinery was $800,000 and Matin put up 80% of these costs with his own money. I'm to assume that the 3 doctors either own 20% of Velvet Textile, or Matin/Veltex owes them $160,000. All of this could be true.
However, my question is how did KCA Garments survive since 1991 with no revenue to cover their 900 employees? You can't say stock issue because the company was private prior to Veltex's purchase? How has Veltex survived for 9 years with no revenue? How do they pay their employees, rent, electric, etc. If you say stock sales, that just doesn't add up. In 2001 no stock was issued for cash or services. Do the math and let me know what you think!! GL