Veltex Corporation (VLXC)

[Growth And Value]

You expect growth without an increase in Equity?

Get real! Yes, shares outstanding has increased, but earnings have increased at a HIGHER percentage.

My research shows the following revenue breakdown:

Velvet Textile Mills 15 Million
Veltex Apparel 6.64 Million
KCA Garments 20 Million

Total 2004 Revenue 41.64 Million

Net Income increased to 6.03 Million

Now, instead of Velvet Textile selling to KCA (in 2003), and KCA selling to Target, Nike, etc. Veltex Corporation sells (in 2004) to Target, Nike, etc. Therefore, Veltex Corporation through vertical integration has cut out the middleman and can book even greater profits than before.

If you knew much about growing companies, you would realize that as sales grow, so do Inventories and Accounts Receivable. You need more inventories to keep up with demand (hence moving into a facility 5X the size of the old facility).

Prior audits backed up P.R. releases regarding sales and earnings and I'm confident that the 2003 and 2004 audits will as well. Notice how Matin's P.R.s are all about reality now? Hence, 266 new contacts. Veltex is REAL my friend!