NBS 0.00% 9.9¢ nexbis limited

key issues for new investors

  1. 722 Posts.
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    Reasons to stay well away from NBS:

    (1) Spearhead contract in Malaysia has been suspended indefinitely.

    (2) NBS management seem to have hidden the news of problems in Malaysia for as long as they could possibly get away with.

    (3) Now only one revenue generating contract: China. But China, while generating some cash, also looks very dodgy. At one point, James Mackay, a known figure in the online porn industry, was involved in the China contract, although he transferred his holding to an opaque BVI company called Saddington (see my last 10 NBS posts for more info).

    (4) The company's business plan seems to be based on having contacts within govts that have a reputation for corruption.

    (5) Former Chairman (John Houston) left company a few months ago and sold the bulk of his shares immediately for a huge profit.

    (6) The present CFO was the former CEO when the company went into administration two years ago. He and other directors dumped their shares on market after making an apparently positive announcement and a few months before the company went under. The CFO is presently on a good behaviour bond for drunken violence in Kings Cross.

    (7) IF you read back through the company announcements over the last year or so, little of what was promised has actually transpired, but virtually no explanation or corrections have been given.

    (8) All the claims made in the company's US patent application have already been rejected once. The new application doesn't look to have properly addressed any of the reasons for the rejection of the first application.

    Reasons to buy NBS

    (1) A couple of large instos are now stuck in the stock (i.e., they bought big before they realized that NBS isn't exactly the company it is pretending to be). Since these insto's can't exit on market (without sending the sp to less than 1c), they have little choice but to support the company.

    (2) The company has told the market that it is about to sign three new contracts.

    (3) Thee company has recently told analysts and instos that it is very confident of winning a large Vietnam drivers license contract in the near term.
 
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