Replies to post #303 on Veltex Corporation (VLXC)

[nightstocker]

I agree with most of your aprehension surrounding the future of this stock. I believe that the shares were sold to get immediate cash to use as downpayments to daimler chrysler financing for the nw trucks. As you can imagine there would be a significant cash requirement needed to cover that.

As for audited financials, I am not expecting them until the end of February, but sure would like to see them earlier. As per the Dec news release VLVT had an auditor in place, so I assume that means that the actuall process would have started that month. Now if the books were in reasonable condition, which they should be considering they had been perused by a Bangledeshi accountant of some type, it may be quicker than starting from scratch.

I expect that there will be some evidence of frontloading or increased buying volume immediately prior to the results hitting the street. Watch the tape and we may know a day in advance.

JR

[daniello]

pual,

"The company said: "company currently has over $500,000 of cash on the books. Veltex has over $11 million in total assets with very minimal debt." and "We expect to continue to announce record profits for the remainder of the year and into 2003"(Dec 2nd)"

As I understand the situation most of the $500,000 is in Bangladesh and it would be subject to substantial taxes if transferred to the US. In addition, having it on the books may have influenced their ability to get financing for the new trucks.

"In this context, why did they have, since then, to dump millions of shares in the market at between 3 and 4 cents? (Each 1,000,000 only generated only $35,000 or so ???)."

This sounds as though you think Veltex sold all the shares that have been issued recently on the open market. Could it not be that Veltex issued many of the shares in exchange for professional services, etc. and the recipient of the the shares did the selling? This would be a typical scenario for a rapidly expanding startup company with limited cash.

I share your frustration at seeing the shares go so cheaply but I have to face the fact that they went at the current market ... and that I am very pleased that I could buy in at these prices.

daniello