article with a question, page-4

the guy who wrote that report Russel Wright owns shares and Patersons the company he works for was the lead manager and underwriter for the IPO

the company didnt produce a profit when it said it would.

I'd say there would be a lot of disgruntled shareholders out there. That may be why he so positive on the stock in order not not to lose their business.

Might be worth while you looking at a company called Avanex in the US.

It was headed up by Simon Coa during the dotcom era.

I think it was over $300 in 2001. It is now .70

check out the chart

http://au.finance.yahoo.com/q/bc?s=AVNX&t=my

Take a look at the products. They look a bit similar.

http://www.avanex.com/ProductsSolutions/transmission.htms

Avanex has been in business for seven years and has only just started to make a profit.

http://investor.avanex.com/releasedetail.cfm?ReleaseID=272790

Cao was dumped as CEO halfway through the crash.

Cao owns a 13% of ARR through his company New Commence Investment

I think he purchased the chip making technology from JDSU and on sold it to Arasor for his stake in the company. Where investors paid $1 a share, he bought his ARR shares for about 60 cents each I think but not sure. He is still making a profit but only just.

Patersons the people who put out that report were the lead manager and underwriter for the IPO

"Disclosure: Patersons Securities Ltd acted as Lead Manager and Underwriter to the IPO that raised $35,000000
through the issue of 23,333,333 shares at $1.50 per share for Arasor International Limited in October 2006. It
received a fee for this service. Patersons Securities Ltd acted as Lead Manager and Underwriter to the IPO that
raised $34,300,000 through the issue of 11,250,000 shares at $3.05 per share for Arasor International Limited in
March 2007. It received a fee for this service. Patersons Securities Ltd acted as Lead Manager and Underwriter to
the IPO that raised $12,000,055 through the issue of 5,714,312 shares at $2.10 per share for Arasor International
Limited in August 2007. It received a fee for this service. This analyst declares a beneficial interest in Arasor
International Limited securities. "

I WOULDNT TOUCH THIS COMPANY UNTIL IT STARTS TURNING A PROFIT.