They're going to need some supportThe way the announcements were made, i.e. halting the stock for most of the day and THEN preparing the announcements is very odd, considering the nature of the announcements. Why wouldn’t NSI have already prepared these announcements concerning management changes and financial results? These are not (hopefully) spur of the moment decisions. Why would NSI NOT want to have the stock both trading actively and upwards? I am not so sure why NSI thinks that they are to perform the roll of securities regulator. There is anticipation/rumours that additional news (hopefully positive) is forthcoming, but because it was not part of this announcement or HALT, then it has no bearing.
Hopefully the new BOD members and Fogg are able to perform better then the previous group, but judging from this first action, it appears that they are cut from the same cloth.
I am also confused as to why such a small company, especially one that is now described as an accelerator needs a “newly appointed executive committee” to monitor day to day operations. To me, this is a clear signal that the BOD is not very confident with the operating managers and that the operating managers are temporary. NSI is truly developing into a very odd company.
Also, they have issued another ~6.5% of the company’s pre-announcement outstanding shares to I assume Fogg and one new director. Hopefully existing directors did not receive additional options, as they haven’t been earned. The stock option announcement pretty much confirms why the stock price was traded down during the last 60 days. We all know from insider trading reports that Pinnell actively trades his stock and can hardly be considered a “strong hands” stockholder, so hopefully he didn’t receive additional shares at $0.67.
NSI’s stake in Answers will be reduced to ~65% assuming that the current private stock issue of $5 million closes. (Current total value of Answers is $US50 million, NSI owns 72% as of date of announcement, and another $5 million in Answers stock is to be sold privately after the announcement).
I have heard that there is some serious buying support for NSI ready to enter the market, which if true, should be a strong signal that some REALLY exciting news is forthcoming.