I sent an email to investor relations related to the euro question. I'll share if they respond. Or if I'm allowed to respond.
ICR will have their work cut out for them to re-establish trust and public image. Hopefully, Najeeb will listen to ICR. You can't continue to dilute shares via stock options and awards and attract new investors. Dilution is only second to EPS. However, they are closely connected. My biggest beef with the Ghauri's is their compensation packages. As I sometimes sit and ponder about adding to my position the thought of their compensation packages stops me from entering a buy order and in fact sways me towards hitting the sell button.
If you read the sec 4 it indicates the $3.88 options run from June 30, 2014 to June 30, 2016. They already knew what 2014 was going to look like in terms of revenue and yet they went ahead with awarding the options. Thieves
He now owns 25k more shares of NTWK @ $3.88. His option to buy more shares @ $3.88 expire on June 30, 2016. You are confused. ESO's (Employee Stock Options) are different than Standard Exchange Options. The company dips into the authorized shares which dilutes shares and sells them to him @ 3.88 p/s. He could hold them forever if he chose to. You are referring to call/put options. Why he chose to purchase shares @ $6.40 (Open Market) is a mystery to me when he could have purchase those shares for $3.88. It is common for companies to offer ESO's for incentive purpose. However, he did not deserve the shares.
Yes, I am aware of the revenue p/employee. Sadly, the Ghauri's aren't going anywhere. Neither is their love for Pakistan. No doubt they care more about Pakistan than Netsol. The image of Pakistan will never change, at least not in the next 10 decades. Even if they were to announce something favorable investors will use the opportunity to sell and get out. I'm going to. I would like to say the Ghauri's are stupid but they aren't, we the shareholders are. The Ghauri/Pondel team isn't working for shareholders and it never will. I made a bad choice investing in Netsol. Shame on me not the Ghauri's. I've learned a costly valuable lesson.
How much of the competitive advantage reached the bottom line? How much business has the company lost as a result of being situated in Pakistan? How many investors won't invest in Netsol because of Pakistan? How much of the advantage moved to the Ghauri's wallets? Don't hang your hat on cheap labor in Pakistan because it doesn't help shareholders. Pakistan is curse not a blessing.
If Netsol's products are as good as they proclaim the company will be bought out. The leasing market in China is growing much to rapidly and leasing companies will have to purchase financing software. Unlike the US, China consumers are just now warming up to the leasing market. Netsol's current staffing level could not support the demand if in deed it is the go to software. Again, the US leasing market is mature and China is in the infant stage. I continue to monitor job vacancies at Netsol and have not witnessed a dramatic increase in job postings. This is where Netsol drops the ball. They are not competent enough to explain to the shareholders all the potential and what is really in the Pepeline.
I can't stop laughing. If you were Pondel would you approach Merrill and ask them to take a look at Netsol when the eps is 97x's earnings, and although we continue to dilute our shares, we have new leads in the pipeline and it only takes about 9 to 18 months to close a deal and we have no plan in place to repurchase shares nor pay a dividend. And you think they would steer their clients to Netsol. Get real.
What's appropriate? The stock is selling for 97x's earnings. How much slack can you give a company that has been in business for 20 years? Share dilution kills eps and investor sentiment. Their greed has cost the rest of us shareholders dearly. Integrity is vital to rebuild trust. Trust is the cornerstone of a successful company.