Charleoi,
I have a few thoughts.
1) you post: "how did Phil pay employees/contractors during that time?"
I would guess, they probably were paid with these shares that you keep pointing out that Phil has used to pay people with that we are unaware of. So maybe the large part of shares being issued as of late is NOT actually going to related persons. Paying these employees/contractors with shares would be understandable then, and in my view, would settle our minds a little. However, I would like Phil to lay out that he used x many shares to pay for the services of so and so during the period of such and such. That would be my ONLY complaint. I can accept a fledgling company using its shares to pay people while they get the approval of the quality of their contract performance for payment later.
2) "the magnitude of this issue is far greater than anything going on in Latin America. Do the math, if NMKT had "normal" DSO of 30 or 40 days, that means AR of $7million, not $15million (nor the $20million last quarter)."
BUT, as you have pointed out, NMKT does NOT have "normal" DSO of 30 to 40 days due to these contract payment arrangements, so wouldn't a DSO of 60 to 70 days correlate to an AR of $14MM or $15MM, and as that increase to 90 to 100 DSO, AR would progress upward to about $21MM and then......
THE MAGIC NUMBER of DSO of 120 days that you keep pointing out would correlate to an AR of about $28MM, Correct???? If you do direct extrapolation of the basic numbers.
Well, their DSO was 90 days and their AR are $15MM as of Q4 2005. This looks like they are keeping pace rather nicely, using our shares as another form of currency to help get the company going, which IS why a company offers stock on the open market and people invest in a company stock, is it not?
However, I probably do not understand this in any way that you are trying to lay it out for us. But, for a novice, this is one reasonable, perfectly legit explanation for this issue of some concern.
Can we not breathe easier about this issue now?
