![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Friday, April 25, 2003 11:45:56 PM
The big issues right now are the implications of the presumed shareholders meeting and the proposed increase in the number and category of shares authorized IMO.
I don't know if the company (Mr. Matin) has, or has organized, a "controlling interest" (the right to control the vote more than 50% of the shares outstanding). If he has a controlling interest he can implement pretty much anything he wishes ... and no real accountability is required other than a real "Resolution" and "vote" and notation in the corporate minutes.
I think that the place where this action will undergo some real scrutiny in in the process of becoming "listed".
I personally am not too concerned about an increase in shares authorized because I think the money raised from the sale of additional shares is very likely to be used for expansion (more trucks, etc.) that will result in higher revenues and have a good chance of increasing earnings.
The question I am dealing with is whether or not I can see EPS increasing as a result of issuing more shares. Dilution in the form of number of shares outstanding is one thing and dilution of EPS is another. In this case it appears to me that there might be an immediate dip in EPS followed by an increase 3 to 6 months after the money from sale of the additional shares is utilized.
The authorization of additional common shares is much less worrisome for me than the authorization of preferred shares. At least we know what we are dealing with in the common. The terms of the preferred are a BIG unknown IMO.
Even though a R/S may be authorized I don't think Mr. Matin is dumb enough to implement it until and unless it could be of some real benefit ... and I don't see a probability of a real benefit unless the stock price were over $1.00 and rapidly esculating because of repidly esculating earnings. JMO
While I am truly disenchanted with the actions of the people at Veltex in the area of IR ... it doesn't blind me to the accomplishment they have demonstrated in the area of building a business. I am still LONG and do not intend to sell in the forseeable future.
I am involved in several projects that are taking most of my time lately and want to express my gratitude to those of you who are staying more closely connected and on top of what is going on.
daniello
ECGI Holdings Announces LOI to Acquire Pacific Saddlery to Capitalize on $12.72 Billion Market Potential • ECGI • Jun 13, 2024 9:50 AM
Fifty 1 Labs, Inc. Announces Major Strategic Advancements and Shareholder Updates • CAFI • Jun 13, 2024 8:45 AM
Snakes & Lattes Opens Pop-Up Location at The Wellington Market in Toronto: A New Destination for Fun and Games - Thanks 'The Well', PepsiCo, Indie Pale House & All Sponsors & Partners for Their Commitment & Assistance Throughout The Process • FUNN • Jun 13, 2024 8:18 AM
HealthLynked Introduces Innovative Online Medical Record Request Form Using DocuSign • HLYK • Jun 12, 2024 8:00 AM
Ubiquitech Software Corp (OTC:UBQU) Posts $624,585 Quarterly Revenue - Largest Quarter Since 2018 • UBQU • Jun 11, 2024 10:13 AM
Element79 Gold Corp Files for OTCQB Uplisting, Provides Financial Update • ELEM • Jun 11, 2024 9:25 AM