VEXPQ.PK Sector: Services --- Industry: Air Delivery & Freight Services

[setravis]

eliteG..............got any thoughts on this one?


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Velocity Express Corp.
One Morningside Drive North
Building B Suite 300
Westport, CT 06880
Phone: 203-349-4160
Fax: 612-941-6440
Web Site: http://www.velocityexpress.com

DETAILS  
Index Membership: N/A
Sector: Services
Industry: Air Delivery & Freight Services
Full Time Employees: 1,241


BUSINESS SUMMARY  
Velocity Express Corporation provides transportation and distribution/logistics services to individual consumers and businesses principally in the United States. It provides scheduled, distribution, and expedited logistics services. The company's scheduled logistics services consist of the daily pickup and delivery of parcels. Its distribution logistics services include the receipt of customer bulk shipments that are divided and sorted at metropolitan locations and delivered into multiple routes. Velocity Express' expedited logistics services consist of expedited point-to-point service for customers with time sensitive delivery requirements. Its customers operate in the commercial and office products, financial, healthcare, transportation and logistics, technology, and energy sectors. The company was formerly known as United Shipping & Technology, Inc. and changed its name to Velocity Express Corporation in January 2002, pursuant to a merger with and into Velocity Express Corporation. Velocity Express is headquartered in Westport, Connecticut.

[eliteG]

at first I wanted to say it looks like a nice buy here...but its showing up some heavy distribution on my charts as well as I-Watch(link)
http://thomson.finance.lycos.com/lycos/iwatch/cgi-bin/iw_ticker?t=VEXP&range=30&mgp=0&x=14&y=15&hdate=

still its tempting...

sorry, I know not much help there.

[setravis]

thanks...you are alot of help
i put the link in my favorites

[setravis]

Great time for entry.Follow the chart.
Its due for a bounce off the ema
10 to 15%     

[eulogia]

Can anybody, who is more technical comment on this ticker? 
Thanks In Advance.

[setravis]

go to VEXP post in Stock Picking.
It is located on page two

[bula]

Trading near support levels $6.7 and the *k was just filed 20 minutes ago.  No formal PR is out yet on this but any news on formal closure of the delisting issue could trigger a nice short cover to $8 or $9.

I'm in at $6.7 avg, stop set at $6.5.  Let's see if this baby has legs.

BB

[Adam]

where did you see that?

[bula]

http://biz.yahoo.com/e/050715/vexp8-k.html

Notice of Delisting or Transfer



Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard.
On July 11, 2005 Nasdaq contacted the Company regarding the Company's compliance with certain Marketplace Rules. On May 2, 2005, Velocity Express Corporation, a Delaware corporation (the "Company"), submitted a Listing of Additional Shares Notification Form to The Nasdaq Stock Market ("Nasdaq") relative to the Company's sale of a Series N Convertible Preferred Stock (the "Series N Preferred") through a private placement. Subsequently, Nasdaq notified the Company that the sale of the Series N Preferred violated Marketplace Rule 4305(i)(1)(D) (the "Rule") concerning the need for prior shareholder approval of the issuance of securities under certain circumstances. In response, the Company provided to Nasdaq agreements from the investors in the Series N Preferred that they would not be entitled to receive any shares of Series N Preferred for payment in kind interest or anti-dilution adjustment prior to obtaining shareholder approval for such issuances. Additionally, the Company submitted an agreement from TH Lee Putnam Ventures, L.P. and its related entities stating that it would vote all of its shares in favor of approving the sale and issuance of the Series N Preferred. On July 11, 2005 Nasdaq notified the Company that based upon it submissions, the Company was in compliance with the Rule and that Nasdaq considered the matter closed.

[AustinPowers]

surprised this is still in neutral.

[VikingFan]

Sorry, guys, but this isn't good news.  Actually, it's bad news.  There wasn't any "delisting issue" with VEXP, at least none that anyone knew about.  This 8-k is the first mention of this issue that only came up on Monday (July 11, 2005).  There won't be any "relief" rally at the resolution of this issue that nobody knew about -- the stock had not sold off at all since Monday.

Basically, the Nasdaq had an issue with the private placement of over 2.5 million shares of Series N stock on April 28, which was sold to some accredited investors at $3.685 per share.  As specified in the April 28 private  placement, VEXP had to issue an S-1 registering that stock, thus allowing the investors to sell those shares, within 60 days.  They did so on June 28, but the Nasdaq had to approve this registration.  Apparently, they didn't like something about it, but that is now cleared up.  Now the investors can sell those shares they got at 3.685.

The June 28 S-1 wasn't just for those 2.5 million shares, but it was for 8.76 million shares.  VEXP ran up a lot a couple months ago because traders thought it had a float of under 100,000.  However, misinformation that showed that has now been corrected to show a float of 11.5 million.  The sale of these shares will bring the float to over 20 million. 

Fundamentally, VEXP just continues to burn through tons of cash, and they only keep operating by selling more shares and doing reverse splits when their price drops down.  Just pull up a long-term chart.  It's about as close to a scam on the public as there is.

I'd be very careful holding this one.  It recently broke its uptrend and is consolidating near the lows.  Combine that with these 8.76 million shares now being freed to be sold, and this thing can collapse back to pennies unless they can somehow get the volume way up to allow these shares to be unloaded.  You don't want to be an "investor" in this one if the short-term trade doesn't work out...

[bula]

The preceding post is an exact copy of another person's post from the yahoo boards with one added line at the end.  See http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=13990409&tid=ushp&sid=13990409&mid=21601

I assume that the poster here (VikingFan) is also the original poster (alohamart from Yahoo).  If not, VikingFan should make sure her properly credits the original source of this infomation since these words are not his.

[VikingFan]

Yep -- that's me.

[bula]

kudos then, good post.  Thanks.

[Stocky2000]

short covering soon ? has support in the low 5