GESMON's accurate depiction of this scam on another post this week:
Dwalker, I understand and share your frustration with this company. As for the current EPS vs the stock price, remember, it is not the current EPS you are buying, but rather the future EPS potential. Outside of the recession, I believe most of the problems experienced by NTWK are self inflicted and a result of the CEO. I think an apparent inability to learn from the mistakes of the past and the sum of the following management actions weigh heavily on the stock price. Also, these NTWK management actions have some eerie similarities to the China reverse merger scam companies.
- Inept CEO and unsophisticated management, hostile to US investors
- Unqualified CFO
- Board of Directors that rubber stamps whatever CEO wants
- Company came to US via reverse merger
- Suspect accounting practices
- Assets held outside of US legal jurisdiction
- Company management domiciled outside of US legal jurisdiction
- Rampant nepotism (you never get the best possible management with this practice)
- US share holders treated as second class (US holders get diluted while Pakistan holders get paid a dividend)
- History of consistent US stock dilution and reverse split
- History of hype, misinformation, and lying
- Story stock, always something way down the road that never seems to materialize, to keep you from focusing on the here and now (Land Record Mgt., Military contract, Stock buy-back, Partnerships etc. etc.)
- New products / services never delivered on time
- Ill timed geographic expansions
- Unsustainable cash burn rate
I don't believe that NTWK is a scam company like some of the China reverse merger companies, just inept management. However, what is the difference if you conduct your business as if you are.
I still think NTWK has an opportunity to succeed if they can execute. The CEO has no credibility, and the clock is ticking. It is a show me company.