i have owned this stock for a few years and now
totally confused. was their ever a business at
veltex or was it a total sham. if their was
nothing, what can the new board of directors
do? i had assumed that some some sort of
business did exist.
They are not investing in a textile business. What they did was to remove Matin and the existing BOD and take over the company. The new BOD is trying to figure out what to do with the corporation going forward. Right now it is nothing but a shell so forget about the textile business that is history.
This may turn out to be nothing at all, but we all need to forget about the past. Those who scammed us are gone from this entity.
The IRS has a rule concerning stock fraud that allows you to write off the total stock loss if it is proven to be a fraud. That loss can all be taken the year of the sale or in the event the stock just evaporates. Veltex would certainly qualify as a fraud. Also, why would a group of wealthy investors want to invest in an industry that is suffering and has such low margins. Plus, they don't know anything about the industry other then they got ripped off just like the rest of us.
Well I'd sure like to know how you think you Can deduct all of your losses from your 09 taxes so please enlighten me. If you sell or declare it a total loss it is a capital loss which is an allowable offset against capital gains, but only 3000 dollars can be used each year as a deduction against income.
The BOD consists of three wealthy individuals each of whom holds a large position in Veltex, and one of whom is the guy who is suing Matin in CA. One of the other two is Steve Macklem who you should all remember as the guy who fought to legitimize Matin. The other guy is the plaintive in the Utah suit. I understand your skepticism, but unless and until they ask you for money I can't see any reason not to give them a chance to make our shares more valuable. If you want to sell your shares here and you have them or can get them in certificate form let me know and maybe we can work something out.
The shell is nothing more then the legal documents filed in the corporation department. Anyone can form a corporation for $300.00. The BOA is selling what ever they can, (which is much of nothing) and will close the corporation as soon as everything is gone. Write this one off as a fraud, which by the way is deductible in full for 09 taxes, regardless of the amount.
The present BOD has put up the money it took to rest control of the company from Matin and his cronies. They did not do this to save you or for your thanks. They did this because they had a lot invested here and they are willing to spend a few bucks to try and salvage their investments.
Right now there is a BOD and a shell corporation and nothing else. Nothing, no business, no assets, no nothing. Do you get it?
Without the present BOD there would be nothing except Matin scamming people like you and me. Matin is not through with the courts, not by a long shot.
Once the judge cleans up the shell, which they are empowered to do, we will see what happens. If any one of you has the resources to provide financing, or can get financing for any new business venture please step up. I feel quite confident that you will be welcomed to the BOD along with your financing and ideas to make this a viable company.
I can tell you one thing and that is if this does start up again it will not be a scam. If the shell is sold then you won't be holding stock in it and should no longer care what it becomes.
I will defer to Roger on this one. There is the truth and then there is bull. I suggest Roger concentrate on what really went on over the last three years. I do know but Roger may have a better spin on the whole thing.
There was a business, however it was not what it was claimed to be. Veltex was a "jobber" in that they took orders for various garments and paid legitimate mills and garment makers to produce the goods under whatever label the buyer wanted. Veltex also bought large lots of finished garments from overages of mills and garment makers. Business consisted mainly of reselling these goods to wholesalers and retailers. I think that they made some money by warehoussing goods for other jobbers as well, but like all things Matin, there are few if any records to track down.
The scam was the overstated business. There was no mill or garment maker. The sales never amounted to even a small fraction of what was claimed.
What I don't understand is why they can't make a case against him based solely on the fact that there was no mill as he always claimed.
The new BOD is not involved in the textile industry. They are a group of shareholders who have taken the initiative to have Matin removed from the corporation. They have seized and sold all of the assets they could find to fund their efforts and now they have a corporation without a business.
In the worst case they have a shell that can be sold, but that will not give us much more that a few cents (if that much) return for our shares. They can try to raise funds and start a business of some kind (no idea what that might be). There may well be other options, not being a businessman your guess as to the possibilities will probably be better than mine.
So forget about the textile business. No one on the BOD is a textile person as far as I know.
Hey! Maybe they'll start a hedge fund?