NSOL & AGORA VS. Asensio - PART 3
Asensio and Co. is at it once again. However, once again, we are here to show you that Asensio does nothing more than take simple concepts and make them sound complicated, thus, attempting to scare investors into selling stock.
Therefore, please find enclosed another dissection of the Asensio fear mongering by AGORA. Please do all NSOL longs a favour and get this out to as many boards and discussions as possible. We put our work into dissecting the Asensio reports and we need you disseminate the information.
ASENSIO EXCERPT #1
"The DOC has thus far rejected NSOL's cost arguments and $16 proposal. In fact, the DOC has solicited and obtained information concerning operating cost and capital requirements for the
maintenance of an Internet domain named Shared Registry Service (''SRS'')."
AGORA REPLY
1] Asensio has no way of knowing the current status of negotiations between the DOC and NSOL. The fact that NONE of us do means the firm can make such claims without being refuted. The only people who can refute, DOC and NSOL, are not about to take their negotiations public
2] Having said that, the fact that "the DOC has solicited and obtained information concerning operating cost and capital requirements" should come as no surprise to anyone. This is the kind of reasonable action taken by any party that is outsourcing work. The DOC is just doing their homework but Asensio writers use "solicited and obtained" to make it sound more serious.
In other words, next time you "solicit and obtain" info about the cost of fixing your basement, see if your contractor shakes in his boots. All you are doing is getting a general idea with respect to costs so the contractor does not take you to the cleaners.
ASENSIO EXCERPT #2
"A fair SRS price must be established before the test bed can commence. Therefore, the DOC may be willing to accept a temporary compromise to facilitate the planned, timely termination of NSOL's contract. This compromise would merely last until NSOL's contract is terminated. Thereafter, ICANN may elect to operate
the SRS as a cooperative."
AGORA REPLY
This is Asensio's CMA statement (cover my a$$). "Willing to accept a temporary compromise" is another way of saying NSOL may very well get their $16. Secondly, "planned, timely termination" is a FEAR MONGERING way of saying what we already know - that sometime in the Year 2000 (September), NSOL's exclusive contract will end. Tell us something new but WITHOUT the adjectives.
Finally, this is the best statement of all. "This compromise would merely last until NSOL's contract is terminated." In other words, NSOL may very well get the $16 price for as long as they have a CONTRACT. Remember, NSOL is in no danger of losing their contract, just their EXCLUSIVITY. Another nice way to CMA for Asensio, as well as, the opportunity to use the word "terminated" in consecutive sentences.
Have to admit, his writers have a real way of making a walk to the park sound like a tour of duty in Vietnam.
ASENSIO EXCERPT #3
"NSOL has failed to provide the ICANN accredited registrars with a DOC approved SRS price."
AGORA REPLY
Yes, of course. This is why it is called a NEGOTIATION. It would be just as accurate to state: "the DOC has failed to ratify an approved SRS price for ICANN accredited registrars.". Sounds fancy and scary but we could have just as easily told you "the DOC has yet to accept NSOL's latest proposal". The difference is that we are not looking to scare investors.
ASENSIO EXCERPT #4
"The DOC's actions may indicate that the U.S. government is
considering an earlier than expected termination of NSOL's contract in the event NSOL is unwilling to deliver the required SRS on time and at a fair price."
AGORA REPLY
How convenient for Asensio. The DOC and NSOL have yet to come to terms, therefore, it MAY indicate the government will throw NSOL out the front door. In law, this is called circular reasoning. In other words, "I think he committed the murder, therefore, that gun must belong to him".
Sorry, Asensio. It does not work.
ASENSIO EXCERPT #5
"NSOL has no legal or technical leverage it can possibly use against the entire Internet community or U.S. government. Its contract already contains strict termination clauses and the InterNIC database can be readily transferred to another maintenance organization."
AGORA REPLY
Is there any company that has any kind of leverage it can use "against the entire Internet community or US gov't."? Secondly, "strict termination clauses" exist in every contract in the world. This is how contracting parties make sure the other side lives up to their end of the bargain. We can guarantee you the same contract contains strict penalty clauses against the government for not living up to their end of the bargain.
Nonetheless, Asensio would lead investors to believe and fear that NSOL is walking a fine line and may get thrown out any day now.
Sorry, Asensio. That doesn't work either.
ASENSIO EXCERPT #6
"Therefore, there is no reasonable basis to believe the DOC will
accept any compromise price remotely close to $16. On the contrary, inappropriate use of SAIC's possible political influence, along with NSOL's baseless, exorbitant demands, may lead to an earlier than planned termination of its entire domain name contract."
AGORA REPLY
There is also no reasonable basis to believe the DOC will NOT accept a price at or close to $16. Thanks for giving us your opinion but Prudential and others have also stated theirs. Secondly, "inappropriate use" of any kind of influence can lead a party into trouble. Just ask MSFT, INTL and others. It applies to every company in the world but thanks for telling us it also applies to NSOL...and AOL, Yahoo, Phillip Morris, Lockheed, Boeing...do you get the picture?
CONCLUSION
This is the second rebuttal we have written to ASENSIO reports. If they had any merit, we would seriously consider them. After all, ASENSIO is not slamming a family member, just one stock in the portfolio. Unfortunately, there is no merit to the reports. Asensio employs the tactic of telling investors what we already know but words it in a way that makes many investors fearful.
We have brought you only the best examples of such tactics in this latest report. There are many more but these examples should expose the reports for what they really are. Fear mongering, self-serving reports intended to benefit nobody but a vulture.
Don't be pushed around by someone who has the ability to issue a press release. Don't even blindly listen to AGORA. Just take a minute to re-read the latest report now that you have an objective opinion. If you peel away the big words, is there really anything more than old news, the obvious and Asensio opinions? If you find any, let us know because we sure did not find anything.
Regards,
AGORA
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