From "The Red Light District", a list of potential "Stink Stocks" at Stockdetective:
stockdetective.com
Veronex Technologies Inc. (OTCBB: VXTK) is just another face in the growing
field of companies claiming to have THE answer to the world's Year 2000 computer
glitch. However, Veronex doesn't appear to have any proven product, but claims that
its program is a one-stop quick fix for most large corporations with COBOL-based
systems. Another warning sign to investors is the company's stock price. After an
apparently successful mini-pump in April, when shares rose to almost $16, the price
dropped by almost two-thirds in less than three weeks. Now the stock appears to be
on the rise again, luring a fresh batch of investors. None of this is lost on long-time
penny stock fans who will remember Veronex as a heavily promoted penny mining
stock. Perhaps they're betting Y2K solutions are the next fool's gold. An added note:
In February, Veronex proudly announced a licensing agreement with Venture Tech
2000, a California computer company. Last week, Venture Tech 2000 was raided
by investigators based on an affidavit claiming that Venture Tech 2000 lied to
investors and sold unregistered securities, according to a story in the L.A. Times.
Nor is it likely Veronex did much due diligence on its prospective partner, or they
would have known how unlikely it is they'd ever get paid. According to investigators,
the company had only $2,000 in assets. |
