Ann: Retraction of Announcements, page-23

When the tide was full, everyone was having a good time in the water so no one cared about the immense compensation paid out to management (esp in ridic quantities of performance shares) but the tide receded, the emperor clearly is stark naked.

For stocks that have yet to prove a real market for its products/services, any research house that makes forecast for tens of millions of revenues is only doing that on the basis of an assumption that its products/services would gain market traction. Market traction depends on a whole host of factors- including competition, implementation hurdles etc and in a lot of cases takes considerable time (see case of YOW). So any products/services that provide great value proposition, we tend to have the bias that it would materialise in the next couple of quarters but in reality it takes much longer. So for these sorts of companies that put management ahead of holders (paying handsome salaries and outrageous performance shares), you should expect more CRs before its eventual revenues can cover overheads/expenses. We have seen significant dilution across many microcaps- MYQ/YOJ/BUD/GSW/3DP/SHO from performance shares well ahead before management has realised tangible revenue achievements. And what was their hurdle to get the performance shares? To maintain share price above a targeted level, as holders we love this if we bought much earlier because we know we will get there but unsuspecting new buyers overlook this when they buy after its issuance. Why cant they get their performance shares if they achieve revenue or profit targets instead if they are really fair dinkum. Fact is they are! And that's why its a red flag as I had posted earlier, not just this stock but all those where it occurred.