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Veltex Corporation
Stock symbol: VLXC.PK …………………………………..Float: 1,300,000 (est)

Stock price 10/28/04: $2.60……….Common shares (10/28/04: 2,000,000 est)

52-week price range: $.50 - $3.00………Equity market capitalization: $5.2mm

 

Recent News…..Stock Price…..Chart…..SEC Filings

Listen to the Interview with Dan Seifer
October 28, 2004

 

HIGHLIGHTS

Growing market: provides very cost-competitive apparel and textile products to the U.S.

  • Strong, experienced management team
  • Excellent profit margins
  • Sales growth year-in, year-out:
  • 2001: $8.7mm

    2002: $13.9mm

    2003: $19.9mm

    2004: $30.8mm for the nine months ended September 30, see below 'recent developments'

  • VLXC plans to become a fully reporting Company upon the completion of its 2003 audit, expected the end of November
  •  

    RECENT DEVELOPMENTS

  • VLXC reported record third quarter net income of $2,210,550 or $1.10 per share. This represents an increase of over 142% from the third quarter of 2003, which was $910,177. Total net sales for the quarter were $9,880,200, an increase of over 119% from $4,500,888 last year.
  • Total net sales for the nine months ended September 30, 2004, were $30,880,200. Net income for the nine months ended September 30, 2004 was $5,070,550 or $2.53 per share.
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    Address: 19977 Harrison Avenue, City of Industry, CA 91789
    Telephone Tel: (909) 595-1977 FAX: (909) 595-1969

    CEO: Javeed Matin

    Web Sites: http://www.veltexcorporation.com, http://www.veltexapparel.com

    State or other jurisdiction of incorporation or organization: Utah

    Transfer Agent: American Register and Transfer Agent, Salt Lake City, Utah

    Investor contact: Dan Seifer, 248-321-0121, DSEIF2@aol.com

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    BUSINESS

    As a low-cost producer VLXC

  • Custom manufactures for mass merchandisers, wholesalers, and can produce consumer brands
  • Imports and distributes textiles and apparel
  • VLXC's vertical manufacturing process includes three subsidiaries
  • . Velvet Textile Mills

    . KCA Garments Industries

    . Veltex Apparel

     

    TARGET MARKETS

  • Major warehouse club stores in the U.S.
  • Retail stores
  • Contract ready-to-wear
  • Promotional products (with no middlemen)
  • Low-cost, high quality products direct to consumers from a new web site
  • http://www.veltexapparel.com

     

    MARKET TRENDS
    Department stores

  • Today most department stores are primarily apparel and accessories stores
  • When consumers shop at stores like Nordstrom, Neiman Marcus or Marshall Field's, they find floor after floor of shoes, clothing, accessories and cosmetics
  • E-commerce

  • National apparel chains are employing bricks and clicks successfully
  • Other firms, such as Bluefly.com, sell apparel through the Internet only, often at everyday discount prices
  • Catalog retailers continue to do reasonable well, particularly if they operate well-designed web sites to supplement their printed catalogs
  •  

    PRODUCTS

  • High quality, specialized textiles, primarily for use by manufacturers of automobile interiors, upholstery for furniture manufacturers
  • Caps and apparel for the promotional products industry
  • Ready to wear garments, especially on denim, microfilament, velvet, twill, canvas, duck and pinpoints oxford fabrics
  •  

    COMPETITIVE ADVANTAGES

    Low production costs

  • Factories in Bangladesh, including its large shirt manufacturer KCA Garment Industries, and Velvet Textile Mills
  • . Allow the Company to be extraordinarily competitive

    . Offers quality products at the lowest price of any major provider to the U.S. market.

    . Labor costs in Bangladesh are 95 percent lower than the U.S., even though Veltex pays generous salaries by Bangladesh standards

  • Many of the materials are imported quota free into the U.S.
  • Direct to the retailer

  • VLXC does not use middlemen, dealing directly with its markets, which is key to profitability.
  • Veltex produces the textiles, manufactures the apparel goods, and can ship the order to the customer eliminating at least two markups in the process.
  • Veltex Apparel is unique in its ability to manufacture the textiles, manufacture the garments and deliver orders in the United States.
  •  

    JUST-STLES.COM

    Recently said "Leading stores are also looking to source more from Bangladesh and India"

     

    BANGLADESH

    The textile and apparel industry in Bangladesh occupies a prominent position within the country’s industrial structure. It is the largest manufacturing sector, providing jobs for some 50% of the total industrial workforce and contributing 9.5% of the country’s GDP. Also, it accounts for almost 77% of total exports, making it Bangladesh’s leading foreign exchange earner.

     

    In the early 1980s exports were dominated by jute while garment sales were insignificant. But today garment exports are by far the leading export category. In 2001/02 the clothing sector generated as much as US$4.58 bn in foreign exchange.

     

     

    IPOdesktop (ID) SAFE HARBOR STATEMENT: Statements contained in this document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. ID provides no assurance as to the subject company's plans or ability to effect any planned and/or proposed actions. ID has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, nor experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company or its agent and related sources believed by ID to be reliable, but ID provides no assurance, and none is given, as to the accuracy and completeness of this information.

    DISCLAIMER: The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report and audio interview is a paid advertisement and is for information purposes only and should not be used as the basis for any investment decision. ID has been compensated one thousand five hundred dollars from the company for preparation and posting of this report, radio interview, and other advertising services. This constitutes a conflict of interest as to ID’s ability to remain objective in its communication regarding the subject company. Analysts, principals, associates and employees of ID do not own or trade equities under coverage. For detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934 contact IPOdesktop, 11693 San Vicente Blvd., #350, Los Angeles, CA 90049. ID is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities but is a paid advertisement. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results. The opinions contained herein reflect our current judgment and are subject to change without notice. We encourage our readers to invest carefully and read the investor information available at the web sites of the U.S. Securities and Exchange Commission (SEC) at http://www.sec.gov and the National Association of Securities Dealers (NASD) at http://www.nasd.com. The NASD has published information on how to invest carefully at its web site. Readers can review all public filings by companies at the SEC's EDGAR page.