For those not looking at RB board
My view on VLVT is that it is highly speculative, looks good but we do not realy have the possibility to validate company's information from second sources.
Recently (Dec 7th) Matin presented his plan of action, it was covered in details on the other board and I studied it as well as I could.
Following are my comments (negative but honest) on that presentation:
I Read the material given to us by DunitB4
A week has past since Matin's audience received that material and the stock value hasn't changed. Now I think I know why..
As with the recent releases, this pitch is very vague and trying to oversell therefore has very low credibility (the worst ennemy of a selling effort).
Additionally, even when the possibility to be specific did exist, Matin did blow it by remaining unnecessrely secretive.
"The company already supplies the largest discount department store in the nation, and has just signed a deal with a 100-year old national department store chain.". Nice opportunity to be specific but...
Other examples:
"Veltex is a regular exhibitor at textile and promotional products trade shows, worldwide.". Why not give names and dates of at least a few...
"Go Vacations currently has under contract over 100 resorts." Dropping the name of 2 or 3 would have been nice...
"Veltex also employs a sales staff and has sales agents throughout the world." Could have expanded a bit...
"As of July 15, 2002, the number of shares outstanding stood at 27,393,808, with an estimated float of 9-million shares." Why in the world quote a four months old figure?
These are only few examples of missed chances to add credibility to his presentation.
Describing for half his time the industries he is targetting does not add to the information his audience was looking for, trying to assess a pink sheet stock. That the markets do exist is fine but being very specific in explaining how you are going to get your market share would have been very important. As an example, naming some existing customers of the different units would have been nice. Not doing it, an audience start to wonder why there is no secondary sources given to help validate the information given.
Matin having been away for two years, reading his material, I felt that he was presenting as all the dotcoms were 3 years ago. Unfortunately, investors now found out that between potential and reality there is quite a step to make. The time when enthousiastic promisses were sucking in investors is history. Now that the bubble has been blown, we are much more demanding and want specific checkable secondary sources to validate the effective potential of an organisation.
Personally I still think that the first step toward credibility will be audited financials and normal "quaterly" reporting ("Each subsidiary will be responsible for providing audited year-end financials to Veltex" ...Matin should have added that quaterly report will also be produced on a timely basis.)
Second, transparency will have to become an objective of the company and specificity will be mandatory, considering history. We must be able to at least know what has been done and know it in a way making validation from a second source feasible.
Finally, Marketing the company will have to be done by a professionnal sales person having both experience in selling and understanding of what the basic techniques of the art of selling are. Matin and those having developped this presentation definitely do not have it. They may be outstanding in different disciplines but selling and marketing is definitely not their bag.
Having read everything I could find up to now, my position remain the same:
-This could very well be a scam (if so however, it's not working very well, considering the value of the share after 3 months of major activities)
-This could very well be a great project that, if successful,
could make us all much richer (If it end up being what they say it will be, within 3 months, Matin will be on Moneyline in April and be the market story for years thereafter.)
However for this "project" not to become another dot.comm type of dream, realism and requirement to be credible will have to be taken into consideration.
Concluding this quite empty speech Matin said: "the company anticipates a stock price of at least $2.00 to $5.00 per share by the end of the First Quarter 2003".
How would you have reacted sitting there and having listen to him for 20 minutes. He is buying companies and will buy some more with shares worth 4 cents, he gets millions of financing for a company having a capitalisation of 1 to 1.5 million dollars and he will multiply the value of his shres by 50 to 125 within 3 months ??? and we have no way to check.
I think that what we saw last week in the market, gives us the answer.
To nice to be true but, just in case, let's put spare money just to see...After all I built my life on a blind date ... and never regretted it...
Let's keep our fingers crossed...
Roger
