I like what Matin does (even if I often express my dislike for what he doesn't do ... yet).
IF we accept released financials, business is great in Asia and that makes us(me) look at Veltex as an established operation growing rapidly and having an undervalued stock. This is not wrong but the market obviously has a different view.
Veltex (as an American operation) is a startup. In that context, considering it's access to supply of quality and low cost, developping a market is THE single most important priority initially.
In such a context, we have to admit that Matin is realy going at it focussing 100% on this priority.
Anyone having been involved in such a context (I have) has to agree with him.
Therefore one way to look at our shares is as some of a startup operation having to succeed in developping its market. With this view, a capitalization of a couple of millions is a very nice position to be in and it offers a great growth potential in a very reasonnable risk context.
Forgetting completely about Bingladesh (however it seem to be there), let's assume an initial step of $ 5,000,000 sales in U.S. and the same kind of profit the company showed during first quarter. The profit (7.87%) $ 393,000 would then mean a profit (always very significant with a startup) of $ 0.002/share (basis of 200,000,000 O/S).
Only on that basis, a conservative multiplier of 15 would justify a PPS of $ 0.03. Even at 50% more O/S (300,000,000) this stock would easyly justify a PPS of $ 0.02.
Just hope I did not miscalculate herein.
The the question is how long will it take for Matin to claim $ 5,000,000 sales in U.S.?
Then out of country revenues will come into play as an add on.
We shall see ...
