Here's some old news. I bought a few today as well.Stocks with...

Here's some old news. I bought a few today as well.

Stocks with the bow-wow factor
Email Print Normal font Large font Scott Rochfort
December 30, 2006
Page 1 of 3 | Single page
REFLUX

Norwood Abbey has taken out the Crap Cap award for 2006, Year of the Dog. The biotech whose "primary focus is the development of technologies that solve drug delivery problems" edged out pig drug developer Chemeq to become the worst performer on the All Ordinaries. Norwood's shares fell 87 per cent over the calendar year.

The company failed to provide Reflux with a comment on its latest achievement. Earlier this month it stated it could not "be sure as to the reasons for the share price fall and market sentiment".

Despite its posting an impressive $22 million loss for the 12 months to June 30 and its auditors raising concerns about its ability to continue as a going concern, the market appears to have overlooked positive developments at Norwood.

For instance, it signed a research agreement with the University of Crete during the year and had two patents granted in Singapore.

One patent was for an "attachment for laser emitting device" and the other for an "applicator for facilitating delivery of a solution to a surface". Beware of people with attachments on their lasers next time you visit Singapore.

While Norwood has been attempting to cut costs, it is refreshing to see executive chairman and chief executive Peter Hansen has not let his company's dismal share price performance affect his pay packet. In the year to June 30, Hansen's base pay rose 13 per cent to $519,405. He also pocketed a $363,000 "provision" to help him "formally relocate to the US".

This is despite the fact Hansen already spends more than 90 per cent of his time outside Australia by his company's own admission. He even scored an extra $60,689 to chair a Norwood subsidiary. His overall package for the year nearly doubled to $1.04 million.

At this year's Norwood annual meeting, Hansen reasoned: "The costs and disruptions involved in international relocations can be very significant."

Yes, indeed. The company paid chief financial officer Jeff Bell $450,000 to relocate to the US. But for the year ahead, Hansen said: "In view of the disappointing share price, senior management have voluntarily agreed to reductions in executive remuneration." Maybe they can just go back to the normal rate of inflation.