Veltex Corporation (VLXC)

[Growth And Value]

Snow the jury is still out

Miami could be right that Matin overstated original equipment costs. But, even his numbers vary. One time, correct me if I'm wrong, he said equipment purchases in 1996 was only $25,000. Later, he said Land was $125,000, Machinery was $800,000 and Matin put up 80% of these costs with his own money. I'm to assume that the 3 doctors either own 20% of Velvet Textile, or Matin/Veltex owes them $160,000. All of this could be true.

However, my question is how did KCA Garments survive since 1991 with no revenue to cover their 900 employees? You can't say stock issue because the company was private prior to Veltex's purchase? How has Veltex survived for 9 years with no revenue? How do they pay their employees, rent, electric, etc. If you say stock sales, that just doesn't add up. In 2001 no stock was issued for cash or services. Do the math and let me know what you think!! GL