Replies to post #10839 on Veltex Corporation (VLXC)

[ImakeMONEY]

The only problem I can see with that theory is as follows:

if he wanted to buy shares why would he make any attempt to put out newsreleases regarding ontrack or positive sentiments? These are the actions of someone who wants the share price to increase or at the least stop declining.

If he was sitting on a bunch of cash and wanted to buy shares, I suspect he would put out a newsrelease that was clearly negative and would have a negative effect on share price. It would not even need be specific, just something saying "veltex may not meet earnings expectations" or "recent economic factors are expected to negatively impact recent earnings".
A negative newsrelease with as much fluff and lack of content would still hurt the share price and should be easily recovered from, clarified, or retracted at a later date.

I can't say I really have a better theory of what is going on, but I believe Matin knows his business much better than he knows the stock selling business. As a CEO who tries to wear both hats (pardon the pun) shareholder interests, company interests, and management interests are not always the same. Nor are they always compatible.

I would like to see Matin appoint someone specifically to the board of directors in the position of 'director of capital structure and development'. A position that would focus upon maintaining and increasing market transparancy, shareholder value, and the market cap of the company. This would go a long way to increasing the credibilty and the share price which would in turn benefit everyone involved.

I'm sure Matin would rather the share price was at $2, which should be extremely easy to achieve and maintain. I fear however that his expertise is the garment industry and not capital markets or investment chat rooms.

Robert