The pumpers' level of knowledge and influence has come to an all-time low perhaps because of desperation and because it is very difficult to find anything positive to say for this company going forward.......remember, the market values companies based of proven and sustainable growth and even more so on potential growth.
Several thinks are clear for those who have their eyes opened about the current state of affairs of this company:
- NTWK has not grown revenues at all since 2008 and are projected to stay in the $35 M +/- $2 million through at least 2013
- Gross margins have plummeted from almost 70% to about 40%
- Dilution is rampant from 5 million shares after the 2003 R/S to the current 75 million outstanding.....an now they are asking you to increase the authorized to 150 million shares (Proxy proposal 4)
- Horrible execution....several years late in the completion of NFS Release 2
- Totally random and unnecessary global expansion
- They admit material weaknesses in every filing admitting that they don't have qualified accountants (including the CFO who does not even have a CPA)).....but when they say that they will hire a US-based CFO the give the job to a dude that settled out of court for securities violations for several million while working at another company. They gave up trying to hire a US-based CFO and now they are trying to hire "Professional Fitness Trainers"....that tells you about how responsibly they run this sinking ship. Their auditor has been reprimanded by the board several times for gross errors/omissions/mistakes
- Lies, more lies and videotape (sounds like a movie right?....it is not) - Lies about share repurchases, lies about projected Vroozi revenues, lies about raise guidance like in 2011, lies in institutional investors meetings about 30%/year growth, lies about when they will complete all the NFS Release 2 modules - This leadership team has ZERO credibility....they can cry wolf all they want, serious and informed investors would not touch this garbage with the proverbial 10-foot pole
OK now about the comparisons to 2010 when they barely avoided delisting....they did so because of the following:
- they fooled everybody with one of their BIG LIES ...."another 2.5 million share repurchase plan to be completed within six months, " this time it worked. They admitted later in a filing that they did not buy any shares. And a year later they declared another one using the same exact wording only to announce a month later that they are looking to get their hands on $40 million because they have no money.
- they reported a strong 4Q with an almost 70% gross margin and almost double digit growth (margins are now 50% lower and per the pre announcement the net income will be a paltry 2c/ share on $12 Milions in revenues - there go your 1Q and 2Q 2013 revenues)
- they announced a huge global deal with Mercedes which went dry because MB is waiting for NFS release 2 Nd they onlly have one ready to go....they are hiring like crazy and lower their margins try to finish the remaining 5 NFS modules in Release 2 or cloud... But they are 1 or 2 years away fro
Fully commerciacializibg them because after they finish them they have to do beta to try and debug)
- in 2010 there were 50% less outstanding shares and did not have the 20 million share overhang they have now per the March share sale at 40c/share
- the street did not fully understand the extent of the unscrupulous and deceiving management attitude
- there were no haters and the pumpers were educated and smart
...............I will continue with my comparison to 2007 in my next post......:)
If you take at good look at the vast majoity of these super pumper post you will see a striking similarity. They all have three paragraph head liners,They all have exactly the same verbage almost a cut and paste they all read exactly the same ...... there are about 3 legititmate people posting the rest you can attribute to NETSLLONG.
OK....let's move to the comparison to 2007.
Paid pumper netsollong keeps posting that the 2007 Golden Cross lifted the pps from $1.5 to $4.5......and he expects the same to happen now.
- In late 2007 NTWK reported a blockbuster quarter with 10c/share net income and guidance was bullish. Gross margins were close to 70%
- A couple of weeks ago they pre-announced "the largest quarterly revenue of $12 million" but the expected net income is about 2c/share and the prospects for 1Q 2013 are terrible because they inflated 4Q 2012 to avoid R/S. That did not work and they will be getting into a week 1Q for 1/10 the number of shares. A 2c/share loss now will be 20c/share loss after R/S and this puppy will be right back under $1 in no time
- in 2007 the share count was 1/3 of what it is now,
- In 2007 the investment community was not fully aware of the unethical and deceitful nature of this company's leadership.
- Margins were over 70% then compared to less than 40% now,
- Growth was positive then (the 30%/year the CEO claims now was correct at the time)....We know now that there has been no growth since 2008 and projected to persist in 2013 and probably beyond (if they survive)....(per recent research of new analyst Taglich).
- in 2007 we were were still in a bull market and any low floater (this bloated pig had a low float then) took off to unreasonable valuations
OK...I rest my case......I can go on and on and on.....And there is nothing that anyone can show me with facts that would change these conclusions...(from filings, company PRs, Pakistan filings, etc.)