Veltex Corporation (VLXC)

[pual]

This is an opinion I posted on the other board after reading:

http://www.kiplinger.com/magazine/archives/2003/February/investing/penny.html

referenced in post 11328.

I do not say that Veltex is not what it claims it is I just want to remind all that great prudence is still appropriate...

VLVT is only a few pennies stock but the following comments extracted from the article you referenced put the "news" of this morning in perspective.

GAMBLING on these stocks is fun but be sure not to commit fund you cannot afford to loose with a smile... But who knows? Don't exceptions make the rule?

Abstracts:

Jeff Helleberg is described as a newsletter editor and securities analyst and his report site contains the tiny disclaimer, "This is an advertisement,"and notes that his firm was paid $3,750 for his article.

Anyone investing in penny stocks "is essentially gambling," says Deborah Bortner, director of Washington State's securities division.

Mass e-mails are often just part of a coordinated effort that in some cases includes Internet chat-room posts, analyst reports distributed by paid promoters and a steady diet of press releases heralding new developments.

Adds Andrew Berger, editor of Walker's Manual of Micro-Cap Stocks: "About 85% of these stocks are extremely low quality and have no business being public."

The drumbeat is designed to draw attention to stocks that might not otherwise merit a glance. Those who respond are often "the elderly or low-income people who don't have the money to buy high-priced stocks," says Richard Chen, an accounting professor at Eastern Kentucky University, who has studied penny stocks. "These folks think they can buy stuff for a few pennies and have a 1,000% or 2,000% return."

Kiplinger's tracked 20 other low-priced stocks that were featured in cyber campaigns in 2002. In 18 cases, the stocks were lower three months after we received the initial pitches, and 13 of them were off 50% or more. One stock was up a little and another was up more than 50%. (The market was down for much of this period, but nowhere near 50%.) When the dust settled, who ended up holding the losing stocks?



Roger