As many of the negative posts have indicated, rightfully, the poor performance of this company management eroded the investors trust significantly. It is clear that currently this company value is not based on numbers but on the potential it still represent for the future. Again some will dispute it but I can't find any other reason for this company maintaining this market cap.
Regarding some of the potential which is currently wrapped with the prospects of the Malaysian deal I have listed below some further indications I found for members review.
1-The Likelihood this is NBS who performs this contract:
High, As I posted few days back, there was an indication in the newspapers with quotes from Malaysian officials that NEXCODE is the product used in the system.
2-Indication on the potential income, to Malaysia, from this project can be found in today SMH.
http://www.smh.com.au/world/malaysia-plans-amnesty-for-illegal-migrants-20110607-1fr7h.html
2 million workers with 250$ per registration = $500M. What % of that from royalties will come to NBS. still a big ?
3-When is this going to happen? clearly, NBS got it wrong in previous communication to the market but the interesting thing is that it seems there is no going back for Malaysia this time with so much of international pressure to finalize their illegal workers issue as well as very firm announcements by the government about their commitment to implement the system in full (by end of June 2011)despite the "hic-ups"
4-On the calendar:
7/6/11: Malaysian Cabinet to discuss/approve the plan.
http://www.nytimes.com/2011/06/08/business/global/08iht-amnesty08.html?_r=1
"The plan, which is expected to be discussed at a cabinet committee meeting Wednesday....reduce human trafficking and increase tax revenues"
" ?We are starting with the biometric system, as we can use thumbprints to register illegal immigrants,? The Star, a Malaysian newspaper, quoted him Tuesday as saying.
The minister?s comments were confirmed by a ministry official who requested anonymity because he was not authorized to comment publicly on the program. The official said that although the plan had not yet been formally approved, it had already been discussed extensively by several ministries. ?It will eventually take effect,? he said."
As this is GOV.. The formalization of tariffs and royalties can take few days and also few weeks but it looks as if the likelihood for this to happen in the near future is greater than ever and I assume this what keeps NBS market cap where it is now.
Time will tell.
note: Although I hold this stock my sentiment will remain LT sell until this company improves its transparency.
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