Replies to post #1138 on Veltex Corporation (VLXC)

[nightstocker]

dag,
I don't want to argue or even discuss this issue but
the entire discussion of shorts is so seriously overdone by every penny stock CEO looking for excuses it is no longer anything but hilarious. The vast majority of short positions in any penny stock is held by insiders and those involved intoxic financing deals.
Individual investors (including small institutional) wouldn't waste their time due to the extremely high margin requirements and high risk/reward ratio. In short, it is an urban myth. Also, as a matter of interest, a reverse split would have no effect upon a short position, nor does any of the other straategies and techniques that various penny ceos have tried in recent years.
The only way to prevent shorting of a stock is positive progressive growth.

ps. As an example, my broker would allow me to short this stock but would require me to tie up 48 cents for every 2 cent share I shorted. If you figure out how much money I have to tie up to make a maximum return of 4% if the company went bankrupt, you would see just why it is completely improbable (not impossible) that anyone would waste their efforts. Look at the type of stocks professional shorts like Anthony@pacific target, they are not 2 cent pinkies.

[luc100]

dagnyish - Besides the reverse split, I am curious if Matin commented on the other two proposals that will be voted on at the Monday Special Meeting of Shareholders. Did he comment on the huge increase in authorized shares? The other proposal is listed below as exactly as it is worded on the "Notice Of Special Meeting Of Sharesholders Of Veltex Corporation."

(c) To issue 20,200,00 shares of the Company's post split common stock for 100% of the shares of Velvet Textile Mills Limited.
The number 20,200,00 is not an error but is exactly what appears in the proposal. Did Matin say anything about proposal c?

[Miamimice]

For The Record Post No. 1138 By DAGNYISH

Cutting & Pasting again

"I called Matin to ask about the reverse split.

The reverse split, according to my understanding, is not intended to take place until it can be useful for the purposes of listing VLVT on the American Exchange. As you know, listing on the AMEX requires a stock price of $3 minimum. VLVT is trading well below its value because of various things - in my opinion, an important problem is the virulent and obsessive bashers protecting large outstanding short positions by terrifying any existing or potential stockholders with wild unfounded stories.

Personally, I am rarely in favor of reverse splits. However, if combined with the proper additional precautions, they are handy tools for forcing the shorts to cover. In this case, a reverse split might be just what VLVT needs. I would rather see the stock price rise to $3 on its own, but I am sure you will agree that appears unlikely at this time unless the bashers leave the stock alone or people pay attention to the facts of the company and not the wild stories.

As I understand from Matin, the reverse split is being presented at the shareholders meeting to avoid having to hold another such meeting in the future to consider a reverse split. In other words, the company wants the ability to quickly do a reverse split if needed. I doubt that such a thing will happen if the stock rises to $3 by itself. Surely the bashers will work to keep the stock low so as to not approach a level where the reverse split would be useful.

In my opinion, it is a shame that people listen to the trash being thrown about on the stock bulletin boards. In my experience, Veltex is a very normal small company. The company releases a lot of information and everyone associated with the company has been quite open in talking with shareholders, and like all small companies, there really isn't much to tell. The trucks are running. The company is pursuing business in its textile and apparel divisions as well as the trucking division and money is being made. The company has had a problem keeping attorneys and auditors because of the volume of phonecalls and the threats these people receive. These are facts.

I would love to see the stock rise on its own to $3, and I am not too worried about more shares. What I am worried about is the strength of the bashing that is going on at the Brand X board. I hope Matin continues to threaten a reverse split! That will force the bashers to cover their shorts! No wwonder they are coming out of the woodwork to bash this stock!"