NavStar Technologies Fails To Meet Promises (PINK:NVSR)

It has been almost a month since NavStar Technologies Inc (PINK:NVSR) announced a “Major Breakthrough” in the Middle east on October 8, 2009. They anounced that “Details will be provided to shareholders in the next 5 to 7 days” on this “Major Breakthrough”. Now investors have been in the dark for 22 days and NavStar failed to meet its promise.

I had a chance to speak with Pat Bannister, CFO, at NavStar who advised they were “waiting on important documents from the middle east”. When asked if these documents were an inked deal or contract he replied “it’s probably just a letter of intent”. I let Pat know that investor confidence is most likely going down when they tell the market 5-7 days for more details and we are now going on 22 days. Pat was not very reassuring and responded “well, it is what it is, and the CEO is traveling around”. Apparently we are now waiting for more information “sometime next week” but I am not holding my breath.

A letter of intent is not a signed contract and I am not sure if this would qualify as “Major Breakthrough” in the Middle East. A letter of intent is known to be a non-binding agreement, in fact many specifically state the letter of intent is intended to be non-binding and no legal obligation will arise until a real future agreement is made.

It will be interesting to see when NavStar will actually provide their update on this “Major Breakthrough” and I am very interested to see if this letter of intent will become an actual contract or if NavStar just has good intent.

About NavStar Technologies, Inc.

NavStar is focused on the creation of products and services that provide tracking and monitoring of vehicles and high value cargo, equipment, and other valuable and personal assets.