posted
realize that Veltex has moved from a sub to over a $1.... Today $1.71
This stock could easily 4x over the next several months...
It is still a tremendous opportunity to make money in my opinion... good separation on the MACD.
(Any thoughts would be greatly appreciated. Realize this is the subs forum but it gets the most coverage...)
Veltex Finalizes Major Canadian Acquisition 6/8/2005 8:01:13 AM CITY OF INDUSTRY, Calif., June 8, 2005 /PRNewswire-FirstCall via COMTEX/ -- Veltex Corporation, ( VLXC ) a vertical manufacturing, import and distribution company for apparel and accessories, announced today that it had completed an acquisition of the promotional products division of a very successful Canadian manufacturing and distribution company. The company has exceptional license agreements, like Tommy Hilfiger, in place and manufactures and distributes high quality, brand name promotional products, such as baseball caps, polo shirts, and shoes.
This acquisition, with over 80 Canadian employees, will be renamed Veltex Canada and continue operations at its existing location of 10 Konrad Crescent, Markham, ON, L3R 9T5. Importantly, this acquisition was consummated for cash and very little stock dilution. Total outstanding shares for Veltex are now approximately 10 million and the Company anticipates total net income to exceed $12 million in 2005.
The Promotional Products industry represents a $1 billion marketing industry in Canada with over 4000 distributors. This acquisition is projected to contribute an additional $7,000,000 to Veltex's 2005 revenues with about $1.2 million more to their net bottom line. Veltex forecasts that 2005 net earnings will easily exceed $1.00 per share. Furthermore, Veltex's client and distributor base, as well as market penetration in North America, will dramatically increase.
Javeed Matin, CEO of Veltex Corporation, stated, "This acquisition is another important milestone in our overall plans to become one of the world's leading, vertically-integrated companies in the manufacturing and distribution of high quality, competitively-priced apparel and accessories. Veltex will gain many new clients and distributors, and immediately benefit from this international expansion. We clearly feel that our shares are significantly undervalued relative to our strong growth progress and projected record profitability. We greatly appreciate all of our loyal shareholders and will always continue to work diligently to maximize share valuations through strong revenue and earnings growth."
Gerard Lee, the previous owner, commented, "We are delighted about becoming part of Veltex, as we wanted to have a strong United States presence, and the synergy of our two companies is perfect for rapid sales growth. Our company has had over 30 years experience in the manufacturing industry and this timely opportunity offers us much greater revenue growth!"
Veltex Corporation is a vertical manufacturing, import and distribution company composed of three divisions: Veltex Apparel, specializing in caps, apparel and apparel accessories for the Promotional Products Industry and distribution of merchandise; Velvet Textile Mills, specializing in the manufacture of high quality fabrics including velvets, 100% cotton twill, denim, sheeting for consumer and industrial products; and KCA Garment Industries, specializing in the manufacture of garments.
Safe Harbor: Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, volatility of market prices, product demand, market competition, risks inherent in the Company's international operations, and the Company's ability to replace and expand.
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