Replies to post #171 on Veltex Corporation (VLXC)

[daniello]

dagnyish,

I agree with everything you said ... but IMO it is a question of convincing people like me that the potential risk of increasing the authorized shares is more than offset by the potential rewards.

If Veltex had an operating history of several years to base some confidence on I might have different feelings ... but given the current scenario I would want some assurances that the additional shares would be used primarily to grow the company. I see nothing wrong with the request to increase the number of authorized shares being part of a specific business plan that says up to XXXXXX shares will be used for acquisitions, up to YYYYYYY shares will be used for employee salary and benefits, up to ZZZZZZZ shares will be used for operating capital, etc.

If something like this could not be done I would be more in favor of a series of incremental increases ... say 50,000,000 at a time ... to give us shareholders an opportunity to experience how much confidence we are willing to place in management and its decisions.

At this point we have nothing to base opinion on except some seemingly desirable expansion. There are no numbers available to us to use in determining whether or not the price was right and if the bottom line justifies the expense. While I think that what has gone on over the past 3 months has been very good for me as a shareholder ... I don't have anything to back that thought up with except my gut feeling at this point.

I have seen some blunders, particularly in the area of PRs, that tell me the management has a long way to go before it can justify "blind faith" on the part of the shareholders as a reasonable expectation. For example, the new web site is IMO a communications disaster. It speaks loudly of big ego trying to impress but fails miserably in communicating basic information. My guess is that that the site is a reflection of whoever at Veltex was responsible for selecting the PR firm who developed the site ... lots of glitz and no beef in their communications style. The PRs full of hype with few facts are another example. My training emphasized that the first law of effective communications is KISS (keep it simple stupid). If the company can't see the wisdom in the KISS approach towards communications and combine it with a full disclosure policy I think it will have a hard time convincing shareholders to approve any increase in authorized shares.