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.
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.
