The following assumes that auditors are anything but Matin's soldiers.
The USA operation did generate no revenues in 2001, if my recollection is right it did generate $261,000 in 2002 and no revenues again in 2003. Except for non repetitive losses (transport), the 2003 loss considering no revenues is $243,502.#
As for the Bengladesh operation, we know from the audit that it was acquired by Veltex Corporation on Sept 1, 1999 (Note 1.1). The auditors do not refer to a partial buying but a buying.
Based on information I received in the past:
- A plant with a Veltex sign in front of it exist in Comilla (whatever that says)
- Matin lost control of this asset thru notes he signed putting his asset as garanty but having the right to get it back whevever he could payback his notes.
Based on information we found out over time:
- Matin did try last August to issue 18,000,000 shares (if my recollection is right, then worth about $15,000,000) to buy the portion of the Mills we did not own at the time (???)
- Matin thereafter issued 5,000,000 new shares (then worth $10,000,000 plus) to do something we do not know about (???)
Related to 2004, we now know:
- That we start with an accumulated loss of $1,812,176
- That the company did a lot of marketing activities (the next audit should say if this was successfull or not and up to what point)
Excluding anything from Bengladesh and assuming 7,000,000 shares outstanding by the end of 2004, for the shares to be worth $1, assuming a multiplier of 12, the company would have to show a profit of more or less $600,000 in 2004.
Question: Could that be the bottom line if the numerous business shows did lead to revenues of significance (let's say a couple of millions)?
Looking at it this way (USA only) we have shares in a startup operation more or less 3 years old having gone thru hard times but apparently coming out of it.
THEN THE QUESTION TO ANSWER SO WE KNOW IF THIS OFFERS A SIGNIFICANT POTENTIAL SHORT TERM IS:
WHAT IS THE BENGLADESH OPERATION ALL ABOUT AND WHAT DOES IT ADD TO THE ABOVE PICTURE?
BOTTOMLINE:
- I do not beleive this to be a scam as claimed by some
- I need to know much more to start beleiving this to be the dream of many
- I consider the 2003 audit to be one small step toward getting a clearer picture of the situation ... hopefully sooner than later.
- I expect a 2004 audit (if it comes) to shed some more light on a still quite dark picture
- If everything goes right, I do not expect to "know" before an audit of FY2005 is released.
Till the good luck to traders enjoying this opportunity.
AI
