Veltex Corporation (VLXC)

[Growth And Value]

The Mill and the Garment Manufacturing plant are both real.

It's a matter of when the revenue is recognized. Most of the fabric is made at Velvet Textile Mill, then it goes to the K.C.A. Garments manufacturing plant to cut and sow into shirts, pants, etc.

What I don't yet fully understand is what percentage of the sale and profits go to Velvet Textile Mill, what percentage of the profits go to K.C.A. Garments, and what percentage is earned by the U.S. operations. The fact that the U.S. operations is finding and making sales means that a percentage of the profits deserves and must be recognized in the U.S.

Matin and the Bangladesh auditor stand behind the $41 Million sales and $6 Million profit in 2004. I will continue to press for a higher percentage to be recognized as revenue IN THE US !!