Veltex Corporation (VLXC)

[nightstocker]

In the December 5th press release they mention that they had taken delivery of 7 of 20 new trucks and that "All of the trucks are being bought under the Veltex Corporation name with an initial payment of $135,000 and the remainder financed through Daimler Chrysler Finance."

Then on Dec 10th they mention:

TRUCK ACQUISITION REVIEW
-- Recently added 20 trucks for a total of 66
-- Expects to purchase up to 95 more by year end
-- Plans to purchase another 100 during Q1, 2003


That indicates that they intend to acquire another 195 trucks, which based upon previous financial requirements would call for approximately 10 times the downpayment utilized in the most recent purchase. Approximately $1.3 million dollars.

Based upon the most recent figure provided by Javeed Matin, they had about half a million in cash in the bank, plus they had raised some more cash by issuing some more shares. (estimate 10 million shares X an average price of 4 cents = $400,000) Giving VLVT a new total of just under 1 million dollars cash to use towards purchasing more trucks.

Now assuming that all previous truck acquisitions have resulted in positive income flow, the projection of being able to afford to purchase the additional 195 trucks within the next quarter seems right on target as a growth strategy.

That's just my take on the numbers.
JR