Hi BB, I think that you have it in one! These guys give the...

Hi BB,

I think that you have it in one! These guys give the impression that they think that they are a bit better than everyone else courtesy of some past success with HFM particularly when it comes to listening and getting out there amongst the rank and file to market the SBN business model and opportunity.

In effect, they may be using the same strategy as HFM but unfortunately the world has changed and SBN is a company that very much requires management that are acutely engaged.

Given the SBN restructure that occured 18 months or so ago that effectively enabled the company to survive, we now have a Board that is made up specifically of individuals who are all primarily focused on multiple, unrelated matters and vocations over and above the operation of SBN. AP and PK sit on the Board to make up the numbers and JH runs the company from Collins Street in Melbourne, Australia in close association with JK who obviously runs all the day to day operations of SBN in the US.

Therein lies the problem as identified by Bantrybay.

SBN is an ASX publically listed company and owns a 100% of US operation on the other side of the world but potentially, its investors reside here. Very few private investment groups are aware of SBN or its potential of establishing a footprint in China with its IP based products or indeed creating a profitable business model in a growth sector that has the potential of being substantial. Fund managers may not be in the mood currently to invest in the likes of SBN with all the deleveraging taking place atm but unless someone starts to get out there and spruik the story, SBN will find itself in the same position this time next year and beyond. There are many small private investment funds in Melbourne and Sydney that could quite easily throw a couple of hundred grand at them if they were fully aware of the potential. They may not be interested given the tough conditions atm but I have always believed that if you have a story to tell, it is no good if it is sitting on a hard drive on a computer in Collins Street Melbourne under lock and key.

Unfortunately, this is the failing of this management. They have some money in the bank and given their collective tardiness in doing anything in this area, SBN could easily outsource someone to attack an investor strategy on very equitable terms.

But we all know that they are not marketers, that is a fait accompli!

cheers