Veltex Corporation (VLXC)

[pual]

I had not seen this release posted today November 1 on FreeReal Time at 12.57 AM. I do not realy understand why this is posted within the "news section" related to Veltex at this time.

May be I missed something ???

Veltex Research Report Issued But What About Compensation?


Nov 1, 2004 (financialwire.net via COMTEX) -- (FinancialWire) A Veltex Corporation (OTC: VLXC) Research Report is available from IPOdesktop.com, according to an announcement this past week.

IPOdesktop.com said its editors are quoted by Dow Jones' (NYSE: DJ) Wall Street Journal and Dow Jones Newswires, Viacom's (NYSE: VIAb) and MarketWatch's (NASDAQ: MKTW) CBS MarketWatch, Reuters and USA Today.

What the press announcement didn't do was to disclose any compensation, as needed for transparency as well as to meet the requirements of the U.S. Securities and Exchange Commission. The report itself also did not disclose its author or the credentials of the author as required by almost all organizations publishing research standards and ethics.

The U.S. Securities and Exchange Commission Regulation 17(b) states:

"It shall be unlawful for any person, by the use of any means or instruments of transportation or communication in interstate commerce or by the use of the mails, to publish, give publicity to, or circulate any notice, circular, advertisement, newspaper, article, letter, investment service, or communication
which, though not purporting to offer a security for sale, describes such security for a consideration received or to be received, directly or indirectly, from an issuer, underwriter, or dealer, without fully disclosing the receipt, whether past or prospective, of such consideration and the amount thereof.

"The SEC has told FinancialWire that Regulation 17(b) means full and complete compensation for research and any other services provided, including amounts and sources, must be disclosed in 'every press release' as well as other
published documents. The SEC states that third party compensations must include the relationship of the payer to the issuer.

"In an email to FinancialWire, John J. Nester, a spokesperson for the U.S. Securities and Exchange Commission, confirmed that regulators interpret 17(b) to mean that specific compensation information must be contained in press releases, and that a link to a disclosure somewhere else, for example, is a violation of the regulation. He further stated that the compensation disclosure required by the SEC includes 'amounts and sources in any press release mentioning the company under research coverage'."

CFA Magazine says its task force with the National Investor Relations Institute proposes that analysts:

"Accept only cash for their work and to decline any compensation that is 'contingent on the content or conclusions of the research or the resulting impact on share price';

"Disclose the nature and extent of their compensation, along with any relationship they may have with the issuer or an affiliate, their credentials and professional background, and any matters that might reasonably be expected to impair their objectivity; and

"Certify that analysts and recommendations contained in the report represent their true opinion."

The SEC had previously told FinancialWire that it intends to enforce its provisions so that investors may have a fully transparent understanding of any potential agenda or lack thereof.

In a January 2000 research report, for example, the SEC said outside analyst Paul Bornstein, who it has charged with 17(b) violations and fraud, "failed to disclose that at least part of Bornstein's optimism about CyberCare (OTC:CYBR), then on the NASDAQ (OTCBB: NDAQ), resulted from his simultaneous employment by CyberCare's public relation's firm.

In subsequent communications with Nester, the SEC's spokesperson, he appeared to equivocate on the subject of whether public companies bear the same disclosure responsibilities as do the research firms covering them. Nester said there is currently no authoritative interpretation from the Commission as to public disclosure transparency by public companies themselves.

On September 20, an Investrend Research proposal for the U.S. Securities and Exchange Commission to clarify Regulation 17(b), including confusion about the requirements of public issuers for full compensation transparency, was adopted by the annual SEC Business Forum on Small Business Capital Formation, and it has been reported out for submission to the Commissioners.

Investrend has also asked the National Investor Relations Institute and CFA Institute joint panel developing guidelines for independent research providers for permission to amend its March 20 comments to ask the panel to require public company issuers "to make all disclosures contemplated by Regulation 17(b), whether or not the SEC has issued an authoritative interpretation or the company's counsel states that it does not have to do so by law."

While independent research by standards-driven providers are "growing in legitimacy," according to the Dow Jones (NYSE: DJ) in a recent article that singled out Investrend Research in that category, the article went on to quote Lou Thompson, president of the National Investor Relations Institute, which had issued new Guidelines in 2002 endorsing legitimate "paid-for" research, as warning of "various mutations of paid-for research."

The SEC Forum is the annual event mandated by Congress to secure opinions and recommendations from public issuers, financial industry professionals and the public.

Companies in the FinancialWire series about questionable research practices and disclosures have included Horizon Medical (AMEX: HMP), Nymox (NASDAQ: NYMX), Genesis Technology Group (OTCBB: GTEC), Martek Biosciences (NASDAQ: MATK),
Ecolab (NYSE: ECL), Clorox (NYSE: CLX), Dial Corp. (NYSE: DL), AdZone (OTCBB:ADZR), American Water Star (OTCBB: AMWS), Markland Technologies (OTCBB: MRKL), Transnational Financial Network (AMEX: TFN) and Telkonet (OTCBB: TLKO), Cytomedix (OTCBB: CYME), LocatePlus (OTCBB: LPLHA), Rockport Healthcare (OTCBB: RPHL), Universal Express Co. (OTCBB: USXP), Lifestream Technologies (OTCBB: LFTC), Home Solutions of America, Inc. (AMEX: HOM), AirRover Wi-Fi Corporation (OTCBB: AVWF), Raike Financial Group (OTCBB: RKFG), CareDecision Corp (OTCBB: CDED), Life Energy and Technology Holdings, Inc. (OTCBB: LETH), TeraForce Technology Corporation (OTCBB: TERA), and Flight Safety (OTCBB: FSFY);

Also, Playtex Products (NYSE: PYX), Ericware Technologies (OTC: ECWR), NuTech Digital, Inc. (OTCBB: NTDL), Terra Nostra Technology Ltd (OTCBB: TNRL), and NanoSignal Corp. (OTCBB: NNOS)., DNAPrintGenomics (OTCBB: DNAP), Syndication Net.com (OTCBB: SYCI), Quintek Technologies (OTCBB: QTEK), GeneLink (OTCBB: GLNK), Quality of Life Health Corp. (OTC: QLHC), Environmental Remediation Holding Corp. (OTCBB: ERHC), Cornerstone Entertainment (OTC: CNRH), Medifast, Inc. (AMEX: MED), Workstream, Inc (NASDAQ: WSTM), SIGA Technologies (NASDAQ:
SIGA), Sub Surface Waste Management of Delaware (OTCBB: SSWM), Xfone, Inc (OTCBB: XFNE), Offshore Systems International (OTCBB: OFSYF; TSX: OSI), American Ammunition, Inc. (OTCBB: AAMI), Electric City Corporation (AMEX: ELC), Digital Recorders Inc (NASDAQ: TBUS), Sonoran Energy, Inc (OTCBB: SNRN), AeroCentury (AMEX: ACY), CTI Industries Corp (NASDAQ: CTIB), MFIC Corporation (OTCBB: MFIC), Vermont Pure Holdings Inc (AMEX: VPS), CytRx Corporation (NASDAQ: CYTR), World Golf League, Inc. (OTCBB: WGFL), Gaming & Entertainment Group, Inc (OTCBB: GMEI), Misonix (NASDAQ: MSON), Destiny Media Technologies (OTCBB: DSNY), Chicago Pizza and Brewery (NASDAQ: CHGO, BioSante Pharmaceuticals Inc (AMEX: BPA), a21, Inc. (OTCBB: ATWO); and

Also, OrderPro Logistics (OTCBB: OPLO), Military Resale Group, Inc (OTCBB: MYRG), Timber Resources International, Inc. (OTC: TMBN), OptimumCare Corporation (OTCBB: OPMC), Command Security (OTCBB: CMMD), Molecular Imaging Corporation (OTCBB: MLRI), TechnoConcepts Inc (OTCBB: TCPT), Sequiam Corporation (OTCBB:
SQUM), MEMS USA, Inc. (OTCBB: MEMS), Provectus Pharmaceuticals, Inc (OTCBB: PVCT), eFoodSafety.com (OTCBB: EFSF), Intelligent Business Systems Group International, Inc (OTCBB: IGII), Chilmark Entertainment (OTC: CMKK), Tech Laboratories, Inc. (OTCBB: TCHL), BodyScan Corp (OTC: BDYS), Wireless Frontier
Internet, Inc. (OTCBB: WFRI), Ableauctions.com, Inc (AMEX: AAC), UFP Technologies (NASDAQ: UFPT), Systems Evolution Inc (OTCBB: SEVI), Resin Systems, Inc (TSX Venture: RS; OTCBB: RSSYF), Touchstone Applied Sciences (OTCBB: TASA), Daxor Corporation (AMEX: DXR), JMAR Technologies (NASDAQ: JMAR),
WWA Group Inc. (OTC BB: WWAG), TravelZoo (NASDAQ: TZOO), I-Trax (AMEX: DMX), Axonyx Inc. (NASDAQ: AXYX), ACL Semiconductors, Inc (OTCBB: ACLO), ImageWare Systems (AMEX: IW), DXP Enterprises (NASDAQ: DXPE), and Epixtar Corp (OTCBB: EPXR).

Veltex Corp. had enrolled in Investrend Research's unique and pioneering professional analyst program, which facilitates independent analysts to provide financial coverage for shareholders and investors in companies that otherwise
would have little or no analyst following. Enrollment in standards-based research is an important measure of a company's commitment to transparency and Good Governance.

Investrend Research analyst David G. Tildesley, CFA, had been preparing a Focus report on the company, but after awaiting corporate information for its completion, it was decided that the company would instead be enrolled into an Investrend Broadcast webcast.

The Investrend Research program is the largest in the world and includes a number of safeguards to reduce or eliminate conflict. These systems, including media coverage and endorsements, may be accessed at http://www.investrendresearch.com

Investrend Research subscribes to the "Standards for Independent Research Providers" at http://www.firstresearchconsortium.com, and adheres to the
Guidelines for independent providers jointly endorsed by the National Investor Relations Institute (http://www.niri.org) and the CFA Institute (http://www.aimr.org).The Dow Jones Newswires has stated that independent research has been growing in credibility over the past 18 months, specifically citing Investrend Research, and the New York Times has reported a survey by Charles Schwab & Co. reveals an astonishing 78 percent of active stockholders now "value research from independent firms over analysis by Wall Street firms with financial ties to the companies they are rating." A survey at
Investopedia reveals that 74.7% of investors say that "legitimate fee-based research is objective and useful," and 70.9% say that a company that enrolls for "legitimate fee-based research is making a positive statement about its
investment potential."

Enrollment fees for Focus coverage is $3,640, and the fees were paid by the company. There are never any fees associated with FinancialWire, which independently covers a wide range of corporate news, including but not limited to those that are or have been enrolled in Investrend's platforms.

Complete information about any company enrolled in an Investrend shareholder empowerment platform, including those of its affiliates and independent analysts and webcasters, including disclosures and disclaimers, is available at the
company's InvestorPower page at
http://www.investrend.com/company/list.asp?sPathParam=yes , and on each report and press release, and investors are advised to read those disclosures carefully before trading in the equities of any enrolled company.

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