Well James, some of us have been following this for a long time. Occasionally stocks have a gestation period. I reckon this might be one of those. Yes, it has been a disaster for early adopters but when you look at the journey in its entirety it seems management has been the problem, not the technology.
Apart from actually winning awards (being recognised by peers)numerous businesses have seen fit to want to be associated with it by forming partnerships. While none of these partnerships have borne fruit, yet, they are still there, sitting in the background while all eyes turn to China.
As far as I know the technology has never been questioned. It has all been about the management and sales strategy. Given the new direction and sales model I wouldn't write it off right now.
Personally, I'm hoping it does relist before June 30 so I can pick some up around 1.5 and then wait to see what happens around the end of the year. Robert Turner and his associates have just stumped up over $6 million for this. He has been on the board for some time, has played in this space for 20 years, successfully, and should know what he's doing. I take a huge amount of confidence from that.
In addition, James Tsiolis, the Chairman, and his associates have put in a few million as well, some recently - I believe that is very positive too. Why would he be adding good money to bad?
The most frustrating thing about this, apart forom the disaster, is that a lot of early adopters have averages from 20-40 cents. All up, including escrow I think there will be something like 1.2 billion shares. My broker says a reasonable multiple is 5 times income for this sort of business. To make 20 cents the market cap would be 240 million so about $50 million of income required. China Telecom are going to be out their selling it. If NET get say $20 a year for a customer and China Telecom has 200 million customers and 1% of those customers opt in, that gives $40 million.......
I believe there is hope (perhaps where others see none), so I'm not ready to jump off this one just yet - stranger things have happened.
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