Despite a number of critisms (mine included) of NBS there are...

Despite a number of critisms (mine included) of NBS there are still a number of positive points to consider:

1.Managing director purchased 500,000 shares in August (you would think he was unlikley to do this if the company was having problems.)

2.Directors hold approx. 15m shares plus 20m options and thus have a significant vested interest in NBS' success.

3.New respected chairman with strong connections particularly in Malaysia. Also unlikley he would risk his reputation by joining NBS if there were problems.

4.NBS are still hiring new staff including a business development manager for Thailand. Ironically one position is for an account executive who will be controlling receivables. Once again you wouldn't think they would be doing this if they were having problems.

5.No debt

6.Strong pipeline of new business opportunities including some that are apparently close to being contracted.

7.Unqualified audit of accounts.

8.Compelling valuation if objectives met, providing a margin of safety.

9.Very high profit margins (although these could reduce if patents not available & competition increases).

10.Participating in a growing market.

11.Winner of best security award in Asia.

12.Granted MSC status by Malaysian govt.

13.Product approved by IBM (http://www-304.ibm.com/jct09002c/gsdod/solutiondetails.do?solution=37074&expand=true&lc=en)

14.Clearly there is still some significant shareholder support as someone was buying yesterdays' huge volume & again today.

This stock is poised to go either way depending on the news flow in the next couple months.