Replies to post #6527 on Veltex Corporation (VLXC)

[shrotker]

I have to disagre with you on this one Roger.

While 4 million pennies is 40,000 dollars in the case of Veltex shares the analogy is not the same.

If you were a partner in a bank account that contained 7 million dollars and there were 2 million other equal partners each of you would hold about $3.50 in value.

If your bank account suddenly took on 5 million new equal partners your share would now be worth only $1.00.

Just like my dollar and your dollar.

I see some value in talking about 500 million shares versue 5 million because while there was a r/s of 1 for 100 there was no corresponding reduction in authorized shares. The total possible dilution must be considered as 100 to 1. No one is suggesting that this will happen, but it can and it doesn't even require a BDO meeting. This may be significant in view of your comment regarding Matin perhaps allowing some manner of control to lenders. If this happens he can issue himself enough shares to maintain control. Sort of a reverse of death spiral financing.