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Microcap & Penny Stocks : Veronex Technologies Inc. (VXTK) -- Ignore unavailable to you. Want to Upgrade?

To: DD™ who wrote (282)	4/8/1998 3:02:00 PM
From: Jeffrey S. Mitchell	Read Replies (1) \| Respond to of 684

Is VXTK a SCAM? -- Part 3 -- In Defense of VXTK (a talk with VentureTech 2000) I talked at length earlier today with Ray Madeiros, Executive VP of VentureTech 2000. I found him to be open and honest about his company and their relationship with Veronex and Global Mining Consultants, the company recently shut down by the FTC for allegedly fraudulent telemarketing. Ray did confirm that VentureTech is operating out of the same building that once housed Global Mining and that one of the major investors in Global Mining is also a major investor in VentureTech. He also confirmed that, originally, 12-14 of VentureTech's sales staff worked for Global Mining, but that only 5 of those people remain. He stressed that while Global Mining was about selling shares in a mining venture, the current sales effort is directed toward corporations in order to inform them about VentureTech's products and services, including their Y2K offerings. VentureTech has 7 programmers on-staff and also operates a factory in India with 200 employees as the result of a joint venture with a company called IIS. Ray said the programmers think that the Veronex I\|Nova product is very promising and that VentureTech "firmly believes it can be a company maker for us." VentureTech currently is doing pilots with 3 Fortune 500 companies using the Veronex toolset and hopes to win those Y2K contracts when they are awarded. These leads were obtained using their own efforts, not via Veronex. Ray also said that, as stated in a Veronex press release, VentureTech is obligated to pay Veronex $2.5M -- cash, not stock -- for a license for I\|Nova. As of yet, they have not paid Veronex this amount, but have given them some money up-front. I found it interesting that VentureTech is trying to get Veronex to charge less per line of code to be more competitive. Currently they are trying to get around $1.50 a line for COBOL. To me this indicates either Veronex is wildly out of touch with the .30-.50 going rate, or they really truly believe their product is worth that kind of money. I am impressed with the credentials of Veronex's President, Thomas Price, and although the marketing claims are laughable and the hype truly of the scam variety, it appears to me that there is an actual product at the bottom of all this. I personally think that Veronex's CEO, David Hite, should realize that you can't run a software company like it's a mining company. While you can argue all you want about how much oil is in the ground and the cost/benefit of extracting it, you certainly can't dispute whether a piece of software does what it claims to do. Furthermore, I think David Hite should stop his laughable "call in your certs" type posting, which only makes VXTK appear more like a scam. Add to that the "review/articles" which are clearly paid marketing materials and its not hard to see why VXTK is a laughingstock among investors here and on the Yahoo boards. I would urge David to get Thomas Price to start posting here on the SI thread where he can address some of the programming precepts behind the marketing hype. And if David insists on continuing to post, which I hope he does, that he point by point address people's questions rather than just assert how great I\|Nova is, regardless if that claim is true. - Jeff