>Please answer YES or NO as to whether the following are your views: > >1. James Tsiolis and the Board of NET have conspired to defraud shareholders, >potential shareholders, the ASX, China Telecom, the Chinese Government (who >gave them some sort of award recently), Bluetech, and others, because this >is all a hoax. The product does nothing and is worthless (quoting @Mr2izgte).
NO.
I do not know James Tsiolis and have never met him, but his bio shows he is a money man, not a technology man. I have no reason to believe he is anything but honest and sincere, and that he believes in his technology. But I also believe that he, like you, is listening to the wrong people, is hearing only what he wants to hear, and does not know enough to ask the right questions of the right people and understand the implications of the answers to those questions.
Answering your very last sentence separately: NO, like GNU GVPE the product does do something and is not worthless. It works under tightly controlled conditions on laboratory based networks, and on such networks it can be useful. And demonstrably so, which is why the glossy presentations are truthful, and why executives from China Telecom (and Telstra, etc.) are impressed when they see it working under demonstration conditions. The problem is that it is completely unsuitable for the role NET are trying to sell it for (communications across the open internet).
>2. At some stage the world will discover this is a massive hoax and the >company will go broke and everyone with a financial interest will lose all >of their money.
(Just to clarify, I never said this is a hoax. That is your word. I never claimed it and do not believe it. My answer below applies to the second part of your question.)
YES and NO. Which is the sort of answer you get when you ask multi part questions.
YES: the company will go broke. The company abandoned the (admittedly rubbish) VSP product and has put all its eggs in the VIN basket. It then put the basket in the China Telecom basket. I fully expect that China Telecom will notice that their customers are not using VIN, will then realise they are paying NET to bundle a product which is not being used, and will cancel the deal with NET in favour of some other technology which works. When they do so NET will have no business. The product has failed in the west, once it fails in China the game will be up.
NO: "a financial interest" is an ambiguous term. Tsiolis is clearly a very clever man. He has made millions out of NET, taking a handsome salary and very large sums in payments to his SCM vehicle in return for achieving just about nothing. That money, and all the rest he will take while this story plays out, will be his to keep. Shareholders, on the other hand, will find their stock valueless, so YES, they will lose all their money.
How long that will all take is anyone's guess now the GEM Global deal is in place. NET are not going to make any significant money from their products, but they have another $29million available now. While shareholders continue to tolerate the issuing of more shares, Tsiolis will keep the plates spinning.
>3. James Tsiolis and the Board of NET will all go to jail for the massive >fraud they have performed.
NO.
Once again, I never said it is a fraud, or a hoax, or anything else malevolent. I am saying they are attempting to develop a business around a technological solution which will not work. It is not a crime to fail in business.
NET Price at posting:
9.1¢ Sentiment: None Disclosure: Not Held
(20min delay)