Veltex Corporation (VLXC)

[SAMNOTSAMUEL]

George,

Given the stock price during the period of most of escalation of shares, I think up to $2.00 per share.

The prevailing theory has been discussed before for best-cased scenario for the past shennanigans.

It is roughly as follows:

2003 trucking fiasco caused loss of total control over mills. We still are very unclear on the status of mills.

Purchase of KCA was needed and maybe some money forked over regarding mills as well, in order for the $6 million in earnings for 2004 to be true.

At time Matin stated the $6 mil, purchase was not done, mill situation was not fixed. He had to announce the big earnings to drive up stock price to then do these actions so hopefully we now do have a money machine.

This is one scenario, so it is possible should be viewed as just a false dream. I don't have a good alternative theory beyond what you suggested which is this is a real company from out of which a long-term scan is being operated.

This comes back to topic of 2005 acquisition. If Matin has used the price surge in the fall to develop a current money machine, then he could have access to some money flow to help with purchase. The other view though is rapidly expanding young businesses can legimately be something of a black hole for cash needs for some time even when profitable. The trouble I have though is why should anybody put faith in the company without more evidence than press releases to date.

sam