Veltex Corporation (VLXC)

[ImakeMONEY]

Up to date info, VLVT puts out info through market-pulse in an effort to raise awareness

http://www.market-pulse.com/veltex.htm

I don't know when this profile was released but at the time they had only 4 trucks, that number has since increased. Also, it is interesting to note that the company MSI has sold it's 200,000 free trading shares as of December 6th for 3.5 cents a share($7000).

Here's the text from the link, but I would encourage everyone to check out that website and see what the 7000 bought.
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The Company


Veltex Corporation (OTC PK: VLVT) is a rapidly growing manufacturer, distributor, importer and wholesaler of high quality specialty textiles primarily for use by manufacturers of furniture, automobile interiors and ready-to-wear garments.

Taking advantage of a window of opportunity offered by increased revenues in combination with decreased competition from textile manufacturers and exporters, Veltex Corporation has embarked upon an aggressive expansion plan which involves:

1. Opening a major distribution center in the United States.

2. Purchasing a fleet of trucks.

3. Expanding two product lines: T-shirts and caps.

Veltex has a manufacturing facility in Bangladesh and a sales and marketing office in Diamond Bar, California and distribution centers located in Diamond Bar, California; Dallas, Texas; New York City and Frankfurt, Germany. The Veltex US operations is a distributor of high quality fabrics for apparel, consumer and industrial upholstery industries and an importer of caps, T-shirts, twill shirts, shorts and other ready-made garment products for the promotional products industries.

Veltex also owns 4 trucks (18 wheelers), carrying Veltex goods as well as providing trucking services to one of the largest trucking companies in the US. The company has plans to increase its fleet to a total of 10 trucks by the end of 2002, with additional purchases currently under negotiation.

The Products

Velvet Textile Mills, a wholly owned subsidiary of Veltex, has been in operation in Comilla, Bangladesh since 1994. The company is currently producing 100% cotton twill, duck and sheeting to fill existing orders and has also started to produce caps, twill shirts and T-shirts to meet the demands of additional buyers in the United States.

In September 2002, Veltex acquired LA Cap, a larger Ontario, California textile company, creating a manufacturing, warehouse and distribution operation which moved to Diamond Bar, California, allowing Veltex to distribute products to all 50 states. This acquisition will nearly double Veltex revenues and improve its bottom line earnings. Veltex had 2001 revenues of $9,954,882 and pretax earnings of $1,986,494. The new company will have annual revenues in excess of $15,000,000 and earnings of nearly $2,000,000 according to the company.

In 1998, Veltex invested over $7 million in plant and equipment for the manufacturing of high quality textiles. It was shipped from the US and installed in the Bangladesh facilities. Labor costs in Bangladesh are 95% lower than US labor costs (lower even than India, Pakistan or China). These low labor costs in combination with modern looms gives Veltex the ability to produce a top quality product and compete on a global basis with some of the highest profit margins in the industry.

The Market

The market in the US is particularly favorable for Veltex because there are currently no US quota restrictions on Veltex products imported from Bangladesh. Veltex US operations (the distributing company) has started importing goods from Bangladesh and has already imported 10,000 (dozens) T-shirts, 2,000 (dozens) twill shirts and 5,500 (dozens) caps. This gives Veltex a distinct competitive advantage. The US Operations also opened three more letters of credit to import $230,000 more of goods from Bangladesh. The volume of orders Veltex has received should be very encouraging to the shareholders of the company's stock.

Veltex is slowly gaining market share in the trucking and distributing business. According to Javeed Matin, chairman and CEO of Veltex, "The purchase of the two additional trucks in September 2002, Veltex will be able to double its carrying capacity and will add $600,000 in revenue, along with $240,000 in profit per year. Along with the other two trucks the company already owns, this results in $1.2 million in revenue and $480,000 in profits. These two trucks will have a positive impact on the earnings per share for the remainder of 2002, and into the future." Matin is also negotiating the purchase of a Memphis trucking company and is "cautiously optimistic" about working out a deal which will result in the purchase of many additional trucks.

Financial and Operations Strategy

Veltex announced in September 2002, that it had recorded first half 2002 profits of $350,000.00 up 26%, compared to the first two quarters of 2001, which was $277,072.00 This results in over $0.01 EPS for the first half of 2002. Revenues from the period were $6,283,183, up over 25%, from $4,977,441 recorded a year ago.

According to G.S. Gill, secretary/treasurer for Veltex Corporation, "What is most encouraging is that Veltex has grown our profits and revenues above our expectations. The efficiencies we have put into place in our manufacturing facility have proven successful, and that has gone to our bottom line. Veltex is in the process of arranging purchase and delivery terms to maintain and grow the earnings for the company. I expect that our capacity will increase by 50% or more from that point forward."

Veltex is projecting possible revenue for 2003 of $33,000,000, and potential net profits of $8.6 million based on the company's current and acquisition and internal growth. That conservatively could lead too earnings of $0.25 per share for the next fiscal year. Veltex currently has a book value of $0.40 per share.

Veltex is in the process of looking at many acquisitions that will increase the earnings and revenue for the company. Veltex would like to in the near future, file to get listed on another exchange, their goal is to reach the AMEX or the NASDAQ SmallCap. The company's main goal is to build Veltex into a large company, and in the process, have shareholders benefit.

Management Team

Veltex Corporation's consists of a high caliber management team and a well-trained technical personnel. It's manufacturing facilities are managed by former US textile industry executives with more than 30 years of experience.

Javeed Matin, Chairman and CEO - has extensive experience in international trade and trade finance. Before founding Veltex, Matin worked as an officer in international trade finance for City National Bank in Los Angeles and was Chairman of Machintech Bangladesh Limited, a company engaged in textile machinery financing, leasing and sales. Matin has an MBA from Ashville University in London, England.

G.S. Gill, Secretary/Treasurer - has served as President of three companies and has an extensive experience in industry analysis and sales tracking. Gill currently manages the financial affairs of the Bangladesh operation.

Victoria Duff, Corporate Advisor - is a veteran of 20 years in top-tier Institutional Investment Banking on Wall Street. Duff structures start-ups and advises existing companies on corporate and Internet strategy through her consulting company Bold Ventures Group.

With the earnings and equity they have built into the company, Veltex management believes that it will soon be recognized on Wall Street.

Veltex's ability to continue to produce a high quality good at a competitive advantage of low cost will ensure that Veltex will develop as a market leader in the textiles industry for years to come.

Disclaimer- (cut and pasted from the disclosure page by me)

MSI has been compensated in free trading shares of common stock, available for public trading as follows: Veltex Corporation compensation from a third party: 200,000 free trading shares of stock in Veltex Corporation, already delivered and 300,000 shares of restricted stock in Veltex Corporation already delivered from the company. As of December 6th, 2002 MSI has sold 200,000 shares of Veltex Corporation for proceeds totaling $7,000.00.