Veltex Corporation (VLXC)

[mytejano]

Gocats:Share dilution is not a major concern at this point imho as long as they keep the shrs O/S under the 50 mil authorized before the official audits are out.The Dec.23 PR plainly states why they have gone from the 27mil since sept to the current 43.2 mil...Consider that they put up $135000 seed capital cash to get the financing on the 20 trucks purchased in December..The next phase of truck buying VLVT has stated they will do will be in the 80-95 range and that news would come out in January..No small deal..That means they will likely have to come up with aprox $600,000 cash to secure the financing on those trucks..I would say if we go all thru January with no news on this trucking deal then there will be valid reason to be concerned they can't come up with the cash.I say give them a couple more weeks to put a deal of that size together before complaining too much..Watch the chart action also..As I've detailed in prior posts VLVT is Mirroring the trading action of Oct.-Nov..The stock is currently where it was on aprox the 3rd trading day of Nov..Next week should complete the process of putting in a major bottom..I paticularly liked friday's action of trading over 600,000 shrs in such a "tight" range of .036-.039..Look back on the chart since Sept and you will see that is the "tightest" trading range the stock has traded in with that level of volume..From a T/A perspective this action is giving a strong signal a "trend reversal"is near since it has occurred after a prolonged downtrend..Tejano