shrinking market, page-2

had another look at their malaysian migrant worker statement and it looks like they were stating they will recieve 60-80m over 5 years.


"The agreement is based on an initial term of 5 years and is for the supply of the NexCode on Immigrant workers existing immigration identity and travel authentication documents including Passes and Visa Stickers applied to Passports.
The agreement is expected to generate approximately AUD$60M to AUD$80M of revenue (on a full year basis), once the solution is fully integrated."

lets say they recieve 15-20m dollars revenue by jun09 from their malaysian immigrant worker contract and their other asset sapio AB recieves 15-20m dollars revenue by jun09 then profit after tax will be around the $20-25m mark, so how are they going to achieve the forecast $48m after tax figure by jun09.

clearly you can see its a pump and dump to get you to buy whilst those who bought around 4c (i believe 900m shares were issued at this price alone) will sell at 9-12c. after consolidation those same people will be buying again in another capital raising (need 15-20m to buy the 43.34% of nexbis they dont own) at a much lower price. then the cycle will start again and another pump and dump will be planned.

I am not saying their isnt potential in the application and their isnt money to be made in the long term but its the implied hype being priced into the stock to enable players to make substaintal profits whilst new long term holders are lured into the stock carrying all the risk.