There are always two sides to a medal and it's the same in a speculative situation.
Based on your message, we have pretty much the same background as shareholders of Veltex and till recently your argumentation was the one side of the equation that kept me in at the level I was prepare to put in this speculation. Therefore I am not going to blame you for your logic.
However, my evaluation of the risk became more worrying with time (I DO NOT PRETEND TO KNOW ONE WAY OR THE OTHER) not getting answers from neutral sources to many my questions.
The perception of the risk started to increase when I saw the handout of Matin, presenting to SCIA (see RB message #7870 on the other board). It was so vague, confusing or incomplete that I started wondering what was the justification for him not to give critical details supporting his views and described acheivements.
Then other questions came up:
1- Why hide the name of the respected auditing firm hired 2 months ago? The excuses I read did not satisfy me.
2- Veltex announced the hiring of a IR team on November 21... Why did they feel necessary to announce it again this week?
3- Why did the company let go of millions of shares at 4 cents (+ or -) having interesting liquidities as of Sept 30th and generating "strong cash flow"?. Why did they not issue details creating confidence, thereby better market value for these shares?
4- How was an unaudited, non reporting company able to get the initial cash and the level of financing they presumably got or were planning to get to purchase these trucks? (from a fleet of 46 trucks on hand on Nov 25, they planned to be up to 66 one week later, to 106 by the end of December, to 206 before next April 1). As per Matin's saying (Dec 5) this meant a down payment of $21,600,000 ($135,000/truck) plus financing. The funds generated from the shares plus the cash on hand as of Sept 30th made up less than $1,500,00. Where did the remaining come from?
5- Assuming these acquisition be for real, why was Shrotker's recent DD generating the kind of answers he got ("called the Business Tax Office in Memphis and they have not heard of Veltex or MultiModal. They say it is necessary to be registered with them in order to do business in Memphis")
6- Why didn't he get an answer from the up to recently very responsive V.Duff, asking "for a source for independent verification of the trucking operation. Specifically a trade journal or organization like ATA, the American Trucking Association". Trying myself I had the same result ... up to now.
...
In summary, if you want to be a beleiver, the facts you list are valid. On the other hand if you want to not beleive, the above questions will justify you.
In my case balancing both sides, in time, I went from "the ris is acceptable" to "yes but at a lower level". Let's see what will come up next and re-evaluate.
The info we get from the company makes this "dream" incredibly attracting. What makes it much less attracting is the lack of credible confirmation sources, supporting something seemingly incredible.
Roger
