I don't know if anyone has proof, and indeed we don't know if CM's relentless crusade was what got NOR to 'fess up' with the now infamous market release that removed any revenue expectation from many of their contracts, but for me it's a simple matter of trust.
In the most recent Annual Report (31 August, 2018) with both PO's and Shane's name plastered all over it have a re-read of the 'Highlights' that presumably lead to PO's payrise:
"Norwood continued to achieve robust client progress in 2018 across its targeted key segments: Virtual Business Mobile Services (VBMS), Compliance, CRM, Cyber Security and Loyalty, with pipeline and contract negotiation activity advancing robustly in all segments.
"Norwood has now established significant partnerships with Oracle, Veritas, Global Relay and AddCom for Norwood’s Enterprise (B2B) offerings and has developed strong partnerships with Affinion International and Collinson Group for Norwood’s Loyalty offerings."
As we know NOR did remove any expectation from the Loyalty agreements, so I'm not accusing them of breaching any disclosure obligations, but do you think it would be fair/ethical/reasonable to update the shareholders when your closest WiFi competitor (ASX:UNL) signs an agreement with Collinson a few short months after you have made these type of statements?
Yes, I believe holders should take their own responsibility for monitoring competitors, and I'm astounded that no-one else here had even made mention of the above, but even so, do you think management are ethically bound to report significant news, both good and bad?
The independent BDO justified pay rise. Do you realise that ASX:FRX Also used BDO as auditors for their most recent Annual Report? Yes, the same ones in Perth!
Now we know that Audit and Remuneration are legally separate and that their would be 'Chinese' walls through the organisation but, does anyone seriously believe working in the same building that they wouldn't be aware of FRX and more importantly what the CEO of FRX was earning? Blind Freddy knows for years it was the ZIP, NOR, FRX wars and we all passionately defend our investments, but do you think they shouldn't be the peers you should be bench marking salaries against?
Until NOR disclose further detail on the Spark NZ, no-one can truly judge it's true value. Even when they do, it will be too late for retail holders, they had to make their decision last week.
NOR Price at posting:
0.5¢ Sentiment: Sell Disclosure: Not Held
