This whole thing has nothing to do with management of NTWK it has all to do with BW and various partners of BW's.
Clearly the German Pegasus group was not the ones being short a good chunk since last May. One other group that can be short legally (legally as it is reported in NASD) may be BW and relations borrowing shares from BW.* – Remember, at that time there were no shares available (in such volume) in the market to borrow.
This April the short position went up while it looked as if NTWK was on the road to de-listing.
NTWK gets coverage, Dr. Ashraf gets the GSA, and the stock goes up.
Then this action from BW and its group is initiated.
Hype talking about going to 10 or 20 is just smoke and mirrors trying to get support for the take over group - possibly also causing people to buy while pumping the market while BW and BW relations continue to short.
If they get to the board (we do not think they will be able) then they will ruin the company as having been presented here before - and they will end up on OTC and cover.
If they don’t get to the board new instruments will be invented and another scenario will emerge.
Whether individual investors still in BW will recover from this or the group management keeps the outcome is currently an open question depending on to which books the short position belong.
It does indeed look like a conspiracy to manipulate the market – (This could be important for anyone seeking damage relief.)
Of course the above are opinions based on both speculation and facts.
Of course no good management will participate on these boards as we have seen it done from that particular group.
*) Adrian Cowler is also a possibility, if the shares in escrow could be shorted legally. What talks against it being Cowler, is that he have had the opportunity to earn so much by covering long ago. Same goes for Tremont and the ones who sued BW last year. Only BW with 2.1MM shares at 20$ has the incentive to go further short in order to recover.
Kr
Jens
