Veltex Corporation (VLXC)

[pual]

I assume that Matin by increasing the issued shares from 2 to 6 millions, he got money for them (for whatever purpose).

May be he found people to hand him cheques in return for shares exchanged directly off the market. Then, whatever the PPS, these people must have had some reasons to beleive that these were to be worth (whenever they can sell them)something better than the PPS they got.

Alternatively, Matin played the market and the 4,000,000 new shares are in the float (therefore lying in his last PR"s).

Just looked at the volumes since the R/S.

Right after the R/S (2 tradig days) 643,000 shares were traded

Thereafter more or less 50,000 shares per day were traded at PPS under $1.00

Then on October 25th, Veltex Corporation Announced Plans to Become a Fully Reporting Company.

During October 25,26 and 27 trading days 1,372,000 were traded blowing up PPS from $0.90 to $3.10

Since then (October 28th) 3,842 shares were traded and many (I presume) were profit taking by those having low cost shares.

If effectively, over 4,000,000 new shares were issued and traded since the split, it looks to me as if the great majority of traded shares were acquired by some buying new shares issued by Matin.

Even worst if Matin waited after October 25th to dump 4,000,000 shares considering total volume of traded shares since is only 5,200,000.