does nbs have responsible management?, page-2

Like many I've been considering the report today, and read their response to ASX with interest and some thought. First, note that I hold NBS however the number is extremely immaterial. Also, first time on HC today and not read any other thread yet.

Before I make a few brief comments, after spending time considering the response to ASX I am actually starting to appreciate the company position. Yes, they realise they provided too much by way of announcements in the past. One of these is the $10M cash (why announce that when it will be in the financials barely a month later). But if they announce a new cash holding now, then they will almost be obliging themselves to answer every time the market wants to know what is happening. HENCE, my interpretation is that NO NEWS IS GOOD NEWS in that business is happening as normal. Have they collected it? No idea. Is it bad debt? NO as that would be material (ie. like a major loss for a bank) and require disclosure. Collecting a debtor does not chanage profit or alter equity. Merely the shape of the balance sheet. As such, although I would be much more comfortable knowing it was collected I will work off the theory that they are following disclosure guidelines so have nothing negative to report. Half yearly report in 5 months should see cash and the share price soar. Until then, well, no idea.

To comment on a few of your points vibemaster:

X exposure (Page 40, Note "i")
They have no need or reason to state how currency movement impact the income or profit on any date. Why would they?? They day after they publish it is already out of date. They have stated the sensitivities which people can work out if they want, as you have.


Debtors terms (Page 34, note "k")
30-90 days is very broad. Yes, but they are also "standard" debtor terms in business. They state a range as I presume different debtors are offered different terms. Nothing strange or sinister here.


Vietnam project
Agree with your comment here. Actually, the whole bonus thing is very very poor as if I recall correctly it is a "guaranteed" bonus!


Future developments, prospects etc
You might call it vague, however I don't think it strange or unreasonable. In short, why would a company disclose contracts that are as yet not signed or complete, or that might be undergoing confidential negotiation? The market will be advised when they are a "done deal".


Corporate governance items:
Generally agree with you. I feel the "guaranteed bonus" is the worst thing that exists.


Options issued 12 June (then cancelled)
These were cancelled on 24 July and re-issued (after obtaining advice bla bla - see announcement of 24 July – though non clarity of what this advice was). This happened (cancel and re-issue) due to market dissatisfaction with the price of the previous options. So they took feedback and did them longer dating but higher price. Fair enough really.


Just my thoughts. Don't like the share price and can understand why it is where it is, however am starting to appreciate the company's stance even though it goes against what I would prefer. Willing to wait with my few cents invested and see what happens.

MJS