Veltex is currently undergoing its 2003 audit and it is expected to be completed
in December. The Company then plans on becoming fully reporting and looks to be
listed on the American Stock Exchange (AMEX). Full year 2004 financial
statements will be audited early next year. Veltex expects to exceed $7 million
in net income or over $3 per share for 2004. Revenue is expected to exceed $40
million for this year.
1- "expected to be completed in December". As usual, Matin keeps everyone in doubt and, considering his current credibility, he certainly doesn't help the PPS. This being said he once more reiterate that an audit is in the works. Some will beleive this new (less specific) target date, some will use this delay to affirm that no audit is coming within a forseeable future. The fact is that all we got is Matin's claim which justifyably can be taken with a grain of salt.
2- "Veltex expects to exceed $7 million in net income or over $3 per share for 2004." If you beleive that it means that Veltex has issued no additional shares since the R/S. IF so, considering known information (Matin was looking for funding in return for shares, he attempted to issue 18,000,000 shares to buy Veltex Mills,...) something important must have changed the plans. I wonder what it could be if this is effectively the case. The only thing I could "imagine" (trying very hard) would be the new Tax agreement between USA and Bingladesh ???
Overall impression, IF honest and competent, Matin is a pretty sloppy CEO in his communications and investors relations activities. Secondly, presumably sitting on one of the greatest business success of the year, he keeps frustrating his shareholders (in total darkness) and partners (presumably knowing much more than we do.
I certainly do not claim the overall story to only be BS but I realy do not like the smell of this.
However, having waited that long, I plan to stick around and see what will happen, keeping most of my shares (may be even all).
