Veltex Corporation (VLXC)

[pual]

Here are some comments I noted from Shane Rogers interview. I do not know when this interview was made but based on its content it is very up to date (including 2003 recently released numbers).

1 - The fact that VLVT is currently trading at 1 time earnings may be explained by the fact it is listed on PS market. To attract required capital needed to finance expansion this will have to be changed (management expect to do it). Normal multiplier in the industry should be in the 5 to 7 range (I consider that conservative).

2 - 900 employees in Bingladesh and 30 to 35 in USA (wharehousing and head office). 15 people actually in sales all accross USA. Plan to grow to 35 in 2004.

3 - Fixed assets are worth $ 10,000,000, the company has very small debts and Matin has invested $ 7,000,000 himself in the company.

4 - Low earnings (???) of 2003 do reflect departure of the transportation sector (40 trucks). Wasn't it for that, earning would have been 50 to 60% higher. Therefore, forecasting revenues of $ 25,000,000 in 2004 and not having this impact, earning would make the real value of the stock great.

5- The company expect to participate in most of the 24 business shows available to them in 2004. Key to getting new customers.