Drop in VLXC probably due to people overreating on technicals. Since the stock broke $1.50 by trading down to $1.43 on a 500 share trade, it's been weak.
The fundamentals warrant at least $2.40, not the current $1.20 stock price.
Sales exceeded estimates in June and they have not reported Q2 yet, but they should very soon and they should be very good numbers!!! http://www.veltexcorporation.com/
Javeed Matin Chairman of the Veltex Group commented, “ We are delighted with the result. Synergies between the companies have also allowed us to reduce operating costs in Canada and maintain sales volumes. Clearly Explorer is a mature company with excellent penetration in the Canadian Promotional Marketplace” he added, “ the addition of a Fall line in Canada should further improve profitability as sales will be increased with little additional overhead costs”
Commenting from Canada, Benji Falkenstein, Vice- President and a twenty year industry stalwart said “the new fall collection represents outstanding quality and value and has already been extremely well received by our major customers”
The collection which includes twill shirts, fleece and denim jackets will be marketed under existing brands.
Falkenstein added “Traditionally we have only marketed Spring and Summer offerings and the addition of the Fall product should increase sales significantly”.
Veltex currently has approximately ten million shares outstanding and forecasts that 2005 total revenues will exceed $60 million with net earnings easily surpassing $1.00 per share.