Pump And Dump

[cpine]

Algae Dynamics: Anatomy of a Questionable Canadian IPO in US Markets


Algae Dynamics



Since 2013, NoHedge has assisted investors to navigate U.S. Traded Canadian company space (OTCBB) that has proven to be full of companies actively engaged in deceiving investors. As investors read our exposé on Algae Dynamics (formerly Carbon Converted Technologies) today they need to realize that our due diligence process employed similar tools, such as background checks, court records, transcripts, and SEDAR and EDGAR filing analysis that led to the halt and trading of numerous frauds. Today's report on Algae Dynamics combines these approaches and allows us to make our strongest impact of fraud to date: limit public investor losses before it can trade. The choice investors are left to make is very simple: Do I buy Algae Dynamics and wait for the rhetoric that its management and its fee collectors will spout or do I sell out prior to what we believe is the inevitable bankruptcy, trusting in our due diligence and track record? The choice is yours and yours alone to make. We have made ours.
Algae Dynamics is controlled by Richard Rusiniak and Paul Ramsay, former Cymat Technologies (TSX: CYM) founders, management and directors. Sandra Elsley, an Officer of Algae Dynamics and a marriage and family therapist, heads financing and investor communications. All three have colorful histories further discussed in this exposé.
ALGAE DYNAMICS RED FLAGS

• Algae Dynamics is controlled by former founders and management of Cymat Technologies (TSX: CYM), who ran the company into the ground for over $13,000,000 ($13 million) in accumulated losses by 2002. Over 4 years, they decreased annual sales of less than $300,000 per year to $0 in 2002 when Mr Ramsay and Mr Rusiniak were retired from the company.
• In the final year of employment at Cymat, these two Algae Dynamics Directors lost $7 million in just one year before they were retired.
• 86% of Algae Dynamics is owned by insiders who paid a total of $100 for all of their shares.
• No independent technology review.
• Only management is paid – no staff.
• Capital raised and grants exceeding $2M – most of which is accounted for as “expenses” as of March 2014 (per S1 filings).
• There are no employees or operations in the United States.
• Money is not spent on technology.
• Nominal equipment : $27,000 (as per 2014 S1)
• There are no operations, their focus is on shares sales and future share price.
• Offering documents in 2013 state future value at $250 million; however, the registration S1 statement proves no revenue, assets or profit.
• Primarily funded by a small group of unsophisticated Ontario-based investors.
• No registration, offering, prospectus or exemptions filed with the Ontario Securities Commission.
• The company has pushed for accelerated registration despite serious operating concerns and material omissions.
• No Canadian listing sought.
• Future securities litigation likely from regulators and Ontario investors relating to the Company’s prior private financing offerings.
• No independent engineering reports from a major recognized engineering firm.
• Classic pump-and-dump statements from their investor relations/financier.
• Reverse split prior to S1, masking numerous prior raises at different prices.
• Algae Dynamics goes to a new low in boiler-room share sales: Hire a family therapist to manipulate unsophisticated investors into parting with retirement funds with the promise of high returns. Details of this is covered later in this report.

S1 REGISTRATION STATEMENT
https://www.sec.gov/cgi-bin/browse-edgar?company=algae+dynamics+corp HYPERLINK "https://www.sec.gov/cgi-bin/browse-
The Securities and Exchange Commission is tasked to protect future investors, with limited resources, by determining whether a prospective company is real or not. In this case, Algae Dynamics filed a registration statement with the SEC under private cover pressing to accelerate the going public process without public view. Eventually in the fall of 2014, Algae Dynamics filed its public S1 statement which requires full disclosure of operations and audited financials. The audited financial statements share a new light on the “multi-million dollar company” with some audited numbers:
• 86% of the company is owned by insiders and they too are already seeking to sell shares.
• Insiders paid $100 total for 8.6 million shares.
• Executives were compensated in excess of $120,000 in 2014.
• The remaining shares for registration were purchased by a small group of unsophisticated Ontario investors.
• No revenue now or in the foreseeable future.
• Low/no cash (shows $63,000 in the bank as of March 2014).
• Shareholder agreement terminated with Waterloo University researchers (the technology and bacteria source).
• No money to sustain operations or build a plant.
• No operations people, employees, plant staff on payroll.
• Massive yearly losses.
• In 2014, $3,000 spent in Research and Development – hardly substantial R&D into new technology
• The S1 includes an employment agreement for Sandra Elsley, a family therapist in Niagara Falls, Ontario, who was paid to raise capital for the company and handle investor communications.
• No operational plant.
• No production.
• No Form 4s or Form 3s from insiders.

TROUBLING EXECUTIVE BIOGRAPHIES
The S1 statement contains glowing biographies for the executive team but fails to disclose material information:
Paul Ramsay, CEO and Chairman and Richard Rusiniak, Director
Management claims in their S1 that Paul Ramsay is “Co-founder and former CEO and VP Business Development of Cymat Corp, (TSX: CYM) with a market valuation over $150 million upon his resignation in 2002” and Mr Rusiniak’s is similar.

Fact Check: Cymat Technologies 1998-2002 Annual Reports prove the executives ran the company into the ground and the company lost over $13 million, no sales, and significant year-after-year losses:

Year (source: annual reports) Net Profit YTD accumulated losses Sales
1998 $490,000 loss (omitted from AS) $78,000
1999 $1,400,000 loss (omitted from AS) $265,000
2000 $3.13 million loss
2001 $2.9 million loss $6 million loss $264,000
2002 $7 million loss $13 million loss $0 (Ramsay leaves here)
2003 $2.3 million loss (Algae Dynamic Execs no longer employed)

The year 2000 financial statement could not be located for this exposé; however, 1998,1999,2001,2002,2003-2005 were available to fill in the gaps – you get the idea: huge losses. The inflated share value came from the Internet bubble. The stock became a penny share with massive losses shortly thereafter. Yearly losses were cut significantly when Algae Dynamics management “retired”. The Cymat 2002 Annual Report states:
“Paul B. Ramsay* A director since June 1998, Mr. Ramsay was a co-founder of the company and retired as Vice President of Cymat in March 2002. Richard J. Rusiniak* Mr. Rusiniak has served Cymat as a director since June 1998, and was a co-founder of the company. He retired as Vice President in March 2002.”
Sandra Elsley, VP Communications
Sandra Elsley S1 Biography: “Over 25 years of experience in human relations and the organizational development field as a communications and relationship expert, working in government, corporate and private sectors. Extensive experience developing, marketing and managing peak - performance programs to enhance individual and company dynamics in Canada and internationally. Was involved in the start up of an Ontario based company, was instrumental in raising funds and working as VP Corporate Communications/Investor Relations - share price went from $0.50 to $7.70. Has privately owned and managed a successful psychotherapy and consulting practice since 1991.”
Fact Check: SEDAR and EDGAR do not reveal Ms Elsley working for any public company that had a share price that went from $0.50 to $7.70. There is one public filing from a non-public company that states Ms Elsley’s employment with the company was terminated with cause. There are also numerous judgments and court orders against
In SPAM emails to new potential investors, Ms Elsley claimed the Mr Ramsey and Mr Rusiniak were "smart business men who made $50,000,000 Million about ten years ago and retired" and she goes onto say they "Spent alot of money, got bored, and decided to find the next best product to market." Ms Elsley failed to disclose to investors material information like the two men enjoyed high compensation, share sales to unsuspecting investors, while driving Cymat to a $13,000,000 loss, never achieving a profit, and little to no revenue in less than 5 years.
Ms Elsley will be further discussed in the capital raising detail of this exposé.
SEC S1 CORRESPONDENCE
The Securities and Exchange Commission has now published comments from SEC staff and answers from Algae Dynamic company executives. Highlights of the communications include:
• Get company public now, without quality disclosures.
• The S1 amendments are rife with material omissions and errors.
• The SEC required a material 424B3 filing immediately after the “automatic” Effect statement to ensure the company cannot go public or trade at this time.
• The SECs request and Algae’s management refusal to upload the material shareholders agreement with Waterloo University researchers.
• Numerous deficiencies in the S1.
• Brute-force immediate responses from the Company to the SEC comment letters and a demand for an accelerated effect statement without normal review.
OFFERING DOCUMENTS AND PRIOR FINANCING RAISES

(Figure 1 – financials used in prior financing rounds in 2013)
Fact Checking Highlights of Offering Materials vs. Audited Financials in S1
False Claim Offering Document Actual audit from S1 statement
Revenue 2014 $5.5 million $0 nothing
Gross Profit 2014 $3.6 million $0 nothing
Plant Equipment 2014 $2.6 million $27,000 + 1 computer
Net earnings YTD $2.5 million profit In excess of $722,000 lost
EBITDA (page 8 of document) $247 million value $0 profit x 15 = $0 value

SEED MONEY IN S1 IPO
Most troubling in this company is the lack of investment bank underwriting or financing. Offering documents and materials found on the internet paint a troubling pump-and-dump story. A family therapist, Sandra Elsley, is an officer of Algae Dynamics titled as “VP Corporate Communications”. In an unusual role for a family therapist, Ms Elsley’s job is to find money for Algae Dynamics and handle investor communications. Pacer court records and other public court filings detail numerous prior and current litigations over the past ten years involving Ms Elsley detailing a history of fraud and misrepresentations. A quick search of the names listed in the S1 reveal related numerous litigations, including a transcript from a Nevada lawsuit naming Sandra Elsley as an interested party.
In Pacer, case cv-01463 document 14-1 filed 11/25/13, contains a transcript of of one of many of Ms Elsley’s depositions. In the first 50 paragraphs, Ms Elsley reluctantly admits, after first denying, that the largest private placement investor in Algae Dynamics is a mental-health therapy client of Ms Elsley’s and that Ms Elsley borrowed significant money from her. Ms Elsley refused to disclose the amount she borrowed; however, she did indicate that she had not repaid the loan. This raises a serious concern of “nominee shareholders” whereby Directors and Officers of Algae Dynamics would benefit directly from an S1 investor selling into the market if the company became public. These monies could be disguised as loans to the insiders as they are in most OTCBB scams.
There are numerous SPAM emails by Ms Elsley seeking investors in Algae Dynamics, contrary to securities law. Prospective investors were promised the company would be public in 6 months, have a substantial share price, and that Ms Elsley had a lot of news to announce to pump the share price.
MATERIAL NEWS NOT REPORTED IN 8K FILINGS
Press Releases by Algae Dynamics are NOT filed with the Securities and Exchange Commission.
Algae Dynamics issued a press release dated November 25, 2014 that the SEC declared their S1 Effective after hours on Friday November 21,2014 however they failed to disclose they had to file a material 424B3 filing the following trading day, Monday November 24, 2014, thereby nullifying the Effect Statement. The press release included contact information to receive a prospectus for investment to seek MORE investors.
The S1 on page 12 states: “ Each time we file a post-effective amendment to our registration statement with the SEC, it must first become effective prior to the offer or sale of shares of our Common Stock by the selling shareholders.”
424B3: A form of prospectus that reflects facts or events that constitute a substantive change from or addition to the information set forth in the last form of prospectus filed with the SEC.
NO CURRENT 10Q or INSIDER FILINGS
Algae Dynamics has not filed quarterly financial statements since its year-end of March 2014.
None of the Directors, Officers or insiders of the company have filed mandatory Form 3 and Form 4s with the Securities and Exchange Commission reporting the shares they own and how much they paid for them.
LIKELY RECISSION OF INVESTMENT BY ONTARIO INVESTORS
The Ontario Securities Commission overseas investment and market regulation much like the Securities and Exchange Commission in the United States does. Ontario’s RIGHTS OF ACTION FOR DAMAGES OR RESCISSION mean shareholders who purchased shares in Ontario can demand a refund or file an action against the company and individual who sold them the shares illegally or by misrepresenting facts. Due to time limitations, we expect the Ontario S1 investors will soon commence actions against Algae Dynamics or the Officer who handled their share purchase to recover their money. The Ontario Securities Commission can be very helpful in this regard.
Boiler-room emails from IR blindly seeking fresh investors and press releases publicly seeking investors will likely draw the intervention of the Ontario Securities Commission.
SECURITIES AND EXCHANGE COMMISSION STATUS
At this time, the SEC is not permitting Algae Dynamics to trade on the OTCBB market. Future litigation and likely rescission of investment by Ontario investors will pepper Algae Dynamic’s filings for years to come.
In the unlikely event the company does go public, the only shares registered for sale are the S1 investors – the company did NOT file a shelf registration to sell its own registered shares in the future. If Algae Dynamics trades, the only shares available on the market would be the S1 investors looking to exit as quickly as possible. Presently, the Company is not publicly traded. It has not sought registration for any of its treasury shares for future financing.
Algae Dynamics is following the same pattern of business management as Cymat Technologies and we would not be surprised if the SEC chooses to deny its registration as a public company. Algae Dynamics does not even deserve to trade on the Pink Sheets in our view. Cymat Annual Report 2002: http://globaldocuments.morningstar.com/documentlibrary/document/feab00a6c298ae88.msdoc/original

Disclosure: I will short Algae Dynamics if it becomes public. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

[Android0007]

Short Selling an pump and dump.. I need help please someone help me with this short selling method basically i know what it is and but nobody EVER give instructions or set by step. How do you execute a short sale? don't just tell me "short a company" "i short selling by doing this" etc. I mean, what do you click on in your brokage? I know you need more than 2000$ to get the margin account but after that what do you need to do when buying a stock to short sell? Especially the selling part how do you SELL STOCKS you prefer to short? And does short selling work best with pump and dumps? I've read here http://todaystockmarket.info/ on penny stocks and pump and dumping stocks for huge gains and things have been more clear to me. I hope i will succeed from the help of others on Ihub.

thanks! i really need to know how to short i know tim tim sykes does it, and many others but they never really show people HOW. They just teach it.

[20plus]

LGTT...http://www.fido.asic.gov.au/fido/rwpgslib.nsf/graphicfiles/Scams+-+Pump+and+Dump+process/$file/pump-and-dump-process-LARGE.jpg

[Teamlasvegas]

OMG & WOW
DNAG On The MoooooooN SoooooooN.


$$$$$$$$$$$$

Posted by: stockhlder101
In reply to: chrisbaskett who wrote msg# 47252 Date:6/27/2006 5:40:26 AM
Post #of 47304

chris--If Biofrontera doen't give enough of a price increase, then DNAPrint pharm going public should do the trick!! This board should turn happy soon! In my opinion..
With the first nice leg up in less than 2 weeks!
How can people not be happy)))))))))))))))))))))))))))))

[AirPocketDrop___YES]

Here is some additional stuff...

the professional touts don't want you to know.

---------------

1.)

Your investment in iPoint was a loser and NEOM management has decided to write down over 50% of the original $1,000,000 by recognizing a $530,000 impairment charge.

During the year ended December 31, 2005, NeoMedia recognized an impairment
charge considered to be other than temporary of $530,000 to the carrying value
of its investment in iPoint-media common stock.


That's $530,000 of your dollars down the drain. Check out iPoint's "pertinent financial information". NEOM management can sure pick'em! LMAO

 
 Pertinent financial  information reported by iPoint-media on its Form SB-2 is 
 as follows: 
  
                              Nine Months 
                                 Ended                 Years Ended 
                             September 30,            December 31, 
                                  2005             2004           2003 
                              (Unaudited)      --------       -------- 
                             ------------ 
 Revenues                      $    44          $   514        $   618 
 Net loss                       (1,148)          (1,397)          (551) 
  
 Total Assets                  $   302          $ 1,124 
 Stockholders' deficit          (1,488)            (340)

-----------------------

2.)

Your $250,000 investment in Intactis has been determined to be worthless. Whoops! We're up to $780,000 is poorly allocated capital (i.e. flushed away).

On March 10, 2005, NeoMedia invested $250,000 in exchange for 250,000
shares of Intactis non-voting convertible preferred stock. In connection with
the investment, NeoMedia received a warrant to purchase up to an additional
50,000 shares of Intactis. During the year ended December 31, 2005 NeoMedia took
an impairment of the carrying value of the investment of $250,000. The
impairment loss is included in the statement of operations for the year ended
December 31, 2005.

----------------------

3.)

Pick-Ups Plus? Merely a $150,000 trading loss. It's only a temporary loss though, a flesh wound. Master traders and capital allocators, NEOM management is not. That's why they need youse guys. ;)

On February 25,2005, NeoMedia invested $250,000 in exchange foe 8,333,333
shares of Pick Ups Plus, Inc. common stock. During the year ended December
31,2005, NeoMedia recognized a temporary loss in the fair value of $146,000 as
an adjustment through other comprehensive loss in the statement of operations
and comprehensive loss.

------------------------

4.)

Remember the Secure Source Technologies asset acquisition (Check 21)? Garbage. $335,000... flush!

The impairment charge included in operations during the fourth quarter of
2005 for $335,000 relates to the assets purchased from Secure Source
Technologies, Inc. during 2003 that are part of the NeoMedia Internet Switching
Service (NISS) business unit. The impairment is due to the fact that the
intangible assets purchased are not generating any revenue at the present time
and NeoMedia's management does not foresee these assets generating revenue in
the near term.

------------------

5.)

And the original NEOM business, the operation on which the company was founded, is out of business.

WINDING DOWN OF NCIS BUSINESS UNIT

On February 9, 2006, NeoMedia decided to wind down its NCIS business unit.
NeoMedia has re-allocated certain of the resources associated with the NCIS
business unit to NeoMedia Mobile business. In connection with the
discontinuation of the NCIS business unit, NeoMedia closed its Lisle, IL office
during February 2006. NeoMedia does, however, plan to continue servicing
existing contracts and customers. As of December 31, 2005, the business units
had $633,000 in net sales, a net loss of $1,548,000 and identifiable assets of
$139,000.

-----------------------

Of all the acquisitions and share purchases to date, NEOM management is batting .200. Only the paint repair thing has been a success, if generating one-half the sales of what the average autobody shop does in a year can be consider a success. Since every other attempt to allocate capital has resulted in complete loss or nearly complete loss .. "only kinda sucks" starts to look like a stunning success, doesn't it?

That's why management took the shotgun approach with the recent spate of acquisitions. Buy a handful and hope at least one isn't a complete failure. Given NEOM management's track record with allocating capital, I wouldn't hold my breath. But hey what do they care, its not their money, IT'S YOURS.

[thescientist]

RSHN looks like the dump is gonna come soon enough, also look for a drop in CIVX the pump is finish,

[bodreaux]

Now this seems like an honest opinion, right or wrong, and so one would wonder why it was deleted.

[bodreaux]

Do you honestly wonder why this post was deleted? You outright called Tobin Smith a criminal. Do you expect the board mod's to take on any liability for inflamatory statements like that. Actually, it's called libel, unless of course you have factual evidence to back up the claim.

Funny how your message basically says it's all promotion and no bashing. Sounds just like something a basher would say. Not that you are one, just sounds like a statement one would make.

[AirPocketDrop___YES]

Decent power point presentation.

It did make for a okay template -- I think it does a good job of "selling" the company vision, particularly the vaporclip and the micro-profit miracle mechanic.

There is one problem though -- no where in the document do they discuss projected revenues. The 'general' doc only discloses market cap and average volume, it has pretty pie charts, a flow chart and a bunch of promises and so-called alliances -- but no where in the document will you see a "$" in combination with the words "revenue", "profit", "projected loss". No where. The only time the "$" is used at all is the disclosure of the stock price high since the last shareholder meeting.

See for yourself.

http://www.neom.com/docs/investor_relations/2005Shareholders_1_General.pdf

[AirPocketDrop___YES]

DELETED BY NEOM MODERATORS 12/13/2005

You make an excellent point..

in your observation of the SEC's focus on "paid promoters" versus "paid bashers".

The SEC has released volumes of information and warnings regarding paid promoters and their use of message boards, emails and newsletters. At the other end of the spectrum, there is little to no information or warnings produced by the SEC in regards to paid bashers. I believe it is fair to conclude that the SEC – the regulatory body that oversees the financial markets – finds paid promoters far more potentially damaging to the retail investor than the “paid basher”, if such an entity actually exists.

In fact I think it is quite likely that the “bashers handbook” so often cited on the message boards of penny stocks – this board included -- is actually a creation of paid promoters. It acts as a cute piece of misdirection propaganda that can be employed to undermine the opinion and analysis of market watchdogs and disenchanted investors while serving the interests of the real parasites in the dark underbelly of the stock market that we call the OTC-BB and Pink Sheets.

Over nearly ten years of observing financial message boards I have concluded that it is an undeniable fact that paid promoters dominate this method of reaching the retail investor. I also conclude that most paid promoters, or those compensated to dogmatically root for price appreciation in the face of nonexistent underlying fundamentals, quite often play both sides of the trade. That is to say—the same players who benefited financially on the “pump” also do so on the “dump”.

The electronic message board, like IHUB, and email newsletter, like Tobin Smith’s, have replaced the old telephone-filled boiler room as the communication method of choice by the organized crime element that operates within the micro-cap marketplace.

[lesnshawn]

APD: Two months to answer? Geesh. I'll assume all of your questions there are rhetorical in nature.

lns

[AirPocketDrop___YES]

The recently reported numbers are a disaster.

This so-called "software company" generated $88K in licensing revenues during the most recently reported quarter.

The balance sheet is a complete mess; nearly half of the company's assets are intangible.

As is the case with most pump and dump scams, the promised pay-off is always pushed further into the future yet the stated target market continues to expand, attracting ever-increasing, better capitalized players.

Again, if NEOM was even half the opportunity as touted why is management selling-out the company (diluting ownership) to consultants (thru warrant grants) and Cornell?

Why can't the company attract traditional financing, like venture capital or small business loans? Don't bother answering, the question is rhetorical in nature.

In fact, why can't the company cover it's lease obligations?


On October 19, 2005, Wachovia Bank, N.A. filed a complaint against
NeoMedia in the twentieth judicial circuit court of Lee County, Florida, seeking
payment of $97,000 of rent from previous years. NeoMedia is preparing its
response.

[lesnshawn]

APD: What do you think of the unnoficial, quiet opening of the WordRegistry storefront on Friday? New web site to boot. Looks like they must be pretty confident of Mobot coming in to the fold too (not that I doubted it would happen) given they're advertising taking a picture of anything and having it linked just like a barcode, right on the Home Page of www.paperclick.com

I know, we'll have to wait for the upcoming quarterly releases to see if they actually turn a profit someday. Looking better and better everyday though.

Pump and Dump? I don't think so in this case.

lns

[SeriousMoney]

Hey APD... talkin' to yourself again? BOOYA!

[gassman]

Smart Tire

Does anyone have any opinion about Smart Tire. Does the Tread Act make this company a winner or does it s Cornell Capital Alliance make it another dud?

Air Pocket. Your opinion is always respected.

Gass

[beacon27]

So...anyone have an opinion on NEOM lately .... ????????

Or is this board in a quiet period??

[lesnshawn]

APD: You know I'm gonna do my best to stick you to that, don't you? You may want to make sure you have plenty of BBQ sauce to go along w/ those! LOL!!!

To help me out, I think I'll refer this post here to my fellow longs. :)

You're alright, APD.

[AirPocketDrop___YES]

lns, if they turn a profit...

I will print out everyone of my posts that discusses NEOM and I will eat them, one by one, during a live webcast!

[lesnshawn]

APD: Semantics...making money, producing revenue, generating gross profit. Yes, they aren't "net" profitable yet, but in due time I do believe you will see that turn around.

Maybe when they do you'll change your mind about them.

[AirPocketDrop___YES]

Semantics, lns.

First of all, they aren't "making money". To the contrary, they are losing money hand over fist.

In fact the company has never made money, ever. They have, though, burned through $86,000,000 and have very little to show for it aside for some paint repair business (that loses money on a operating basis) and about $5,000,000 in intangible assets and $1,000,000 in some company named iPoint.

I will say this however-- the company generates a tidy some of money from the sale of common stock, which, of course, is NEOM's raison d'etre.

[lesnshawn]

APD: They aren't in development stage anymore. You know that, right? I think alynnb incorrectly stated that. They are past that and are now in the sales/marketing stage. Oh, and starting to make money too.

You know that companies still in the development stage have not progressed to the point of making revenue w/ their "product".

[AirPocketDrop___YES]

lns, I was replying to this message.

http://www.investorshub.com/boards/read_msg.asp?message_id=7447363

[lesnshawn]

APD: In what filing do you see NeoMedia still referred to as a "Developmental Stage" company? TIA, lns

[AirPocketDrop___YES]

NEOM #31261

What the NEOM moderators DON'T want you to read:


--------------------------------------------------
Developmental Stage

Uhm, most development stage companies that have bankrupt balance sheets and cash flow negative, schizophrenic business models don't sell for $150 million dollars. Most promising development stage companies do not need to seek financing from notorious short selling, convertible arbitrage firms.

To the contrary, when a promising development stage company is seeking equity partners venture capital firms beat down the doors, begging for a piece of the company. Do we see that happening with NEOM?

SAIC has a fairly substantial VC arm, did SAIC Venture Capital Corporation offer financing to NEOM? Why not? After the two companies working relationship, SAIC must certainly be intimately familiar with the innerworkings of NEOM, right? Or the SAIC connection doesn't fly anymore? We "hate" SAIC now! SAIC is blind to the glorious future of Neomedia! Right? lol

Tell me, is this a software company or a automobile detailing company?

Or is this a laundry mat?

[lesnshawn]

APD: OK, at least I see clearly now where you come from. You think all OTC:BB stocks are scams and will never amount to anything.

Hmmmm, related to Jim Cramer by any chance? lol!!

Regarding Mobot, I've written this on the I-hub board...I compare it to when Ciena bought Lightera in 1999. They got them at a HUGE discount just months before start-up optical companies started to go for outrageous premiums (Xros to Nortel for over 2BB!). Ciena aquired Lightera, who was not making a profit and was a small company, for only 500MM. They turned their OEO switch into Ciena's CoreDirector which became hugely profitable for them and is still turning an nice penny for them. It's heralded as one of the industries still best OEO switches for long-haul fiber-optic telecommunications. BTW, if you didn't know, Nortel killed the OOO (Xros) side of their business earlier this year. THAT was a HUGE waste of money. There's something to be said about getting in the game early.

Alas, that was then there, this is now here. Time will tell.

Thanx for the advice.

lns

[AirPocketDrop___YES]

Lns, I am a professional investor.

As some background, my journey into the stock market began with buying penny stocks. I was naive and attracted to all the "concepts" and "promises" conveyed by managers of these dark vehicles through press releases and direct contact. Suffice it to say, in each and every case where I did not sell into the spectacular pump and dump run, I lost my ass. Period. End of story.

I challenge you to find five (5) companies, out thousands, that successfully transitioned from the OTC-BB market to the Nasdaq or NYSE and today are operating at a profit while increasing shareholder equity.

But to reply to your comments on Mobot, what about it? Apparently Mobot is selling out for $11 million. A pretty nice chunk of change for the owners of what is likely a tiny company that loses money.

The story is fundamentally disconnected from reality because of the divergence between the absolutely pathetic financial state of NEOM (aside for the approximately $4 million in "intangible assets", the company is basically a worthless shell) and all the puffery offered by NEOM management.

Again, I will advise the following: if you have a substantial amount of money invested in NEOM it is worth it for you to pay a professional CPA or CFA to render a opinion on the company's SEC filings as well as pay a expert in this field of technology to render an opinion on the substance of the company's technological claims. Please though, don't be offended when they start laughing out loud.

Happy Trails,

AirPocketDrop___YES

[lesnshawn]

APD: Likewise, with all due respect, your posts only ever seem to harp on the negatives as though there are no positives at all to be found.

It's a penny stock. They're all as you describe. That's the name of the game...get in BEFORE it's glaringly obvious that a company is on the road to realized profits.

You're talking about "over the long haul". I'd say here that NEOM is only now on the verge of getting their "products to market". That makes the "long haul" a long way away.

If you want to wait that long here before you decide, so be it. Others though, like myself, have read all we can and we see something real here.

So does Mobot, BTW. Why do you think they're teaming up w/ NEOM? Doing NEOM a favor? Feel sorry for NEOM and their investors and are joining just to make NEOM look halfway decent? Or, do you think that NEOM bullied them somehow to agree to be boughtout? Or, do you think that what Mobot has is, IYO, just as false a "story" as what NEOM has to offer?

http://www.telecomweb.com/news/1123011293.htm

Please explain to me and others here (and on the NEOM board) how NeoMedia's "story" is fundamentally disconnected from reality?

The outward appearance of your posts is that of a concerned individual looking out for fellow investors however if one takes the time to "read between the lines" they find a person who is doing their best to tarnish the integrity of a publicy traded company and it's officers to the hopeful detriment of current and future shareholders. JIMHO. lns

[AirPocketDrop___YES]

DELETED BY NEOM MODERATORS
------------------------------------------------
What?

"HUGE" increases in revenues?

The NMPR sales increased by $70,000 over last year's comparable quarter. Uh, this is a company valued at $150,000,000.

The licensing revenue increased by $86,0000 over last year's comparable quarter. Again, this is a company valued at $150,000,000.

At the current sales rate -- while totally ignoring the abysmal state of the company's balance sheet, negative operating margins, razor thin gross margins, dishonest management, Sybil-like business model, further future dilution of shareholder ownership, and many other aspects -- the company is probably worth $3 million. And that number is derived from the value of a cult-like retail shareholder base.

Hello McFly? Over the period of the company's existence, management's most "profitable" product has been the sale of common stock.

[AirPocketDrop___YES]

With all due respect lns- while well written, the overwhelming majority of your argument is specious in nature.

Over the long run, the value of a company is dervived from figures (quantitative analysis).

Your argument focuses generally on qualitative aspects such as concepts, promises, candy-land comparisons with other companies, etc.. While this looks "promising" on the surface, it is deceiving in reality. A qualitative approach is subject to bias and rationalization.

You have been sold on the story aspect of NEOM and unfortunately for yourself (and many others apparently) you can't, or refuse to, see that the story is fundamentally disconnected from reality.

The outward appearance of NEOM is that of a well-polished, cherry-red sports car however if one takes the time to lift the hood and inspect the "particulars" of the automobile, they find an engine better suited for a lawn mower than a sports car. A tortured metaphor to be sure, but an accurate one never the less.

You are in a ship of fools.

[lesnshawn]

APD: I think you may have it wrong in your assesment here. First, NeoMedia has yet to fully "turn on" the "switch" to the public. By the growing list of words that are starting to show "life" in their GoWindow, I'd say marketers are starting to line up. Some of the links are actually "live" right now and connect to actual WAP sites. Looks to me like FCB and others are doing their part.

I think if you read the lastest 10Q that you will see that money is starting to be generated through licensing and further proof (or not...you know, "keeping it real") will be more substantiated in upcoming quarterly reports.

Things take time, so give some. Did Google start off on top? No. What did it take to get their? A good business plan and time. Remember, it was only since the take-off and public acceptance and use of the cellphone camera that NeoMedia's implementation and wide-spread integration of their PaperClick technology became exceedingly viable. Think about it, who want to carry around a CueCat? Not me. But my camera on my cellphone...well it's there so why not make more use out of it than just to take pictures? That's exactly what they're doing...making much more use of it.

Your comment about "infringers" finding a work-around of their patents is obsurd, IMO, given the outcome of the Virgin case. If finding a work-around were a viable and cost saving option, billionaire Branson would've been LONG GONE down that road. Interestingly enought though he instead decided to settle and fork over 11 years worth of license fees to NeoMedia for the privelage of using their physical/internet linking technology (patents). Moreover on that one, w/ the working relationship they have w/ IBM, if ANYBODY could've assisted them in finding a viable work-around to NeoMedia's patents it would've been them. So ask yourself again...Why didn't Virgin team up w/ IBM to do just that?

Now, to NeoMedia's financials. Gross profits up, sales up, revenue up, long term debt down. Looks like improvement across the board. Oh, yeah, that pesky sales/marketing increased loss. If you know anything about business, it takes money to make money. No need to explain further.

Last to your post here, SAIC providing funding over Cornell. Hmmm, I don't think SAIC would've worked out a $100MM SEDA fund w/ NeoMedia like Cornell did. The terms are very favorable so I don't see where NeoMedia went wrong w/ that one either. Besides, they already have a history w/ Cornell so why not continue the relationship, especially if such a favorable SEDA fund could be worked out...which it was.

And, since you brought up the WordRegistry, what are your thoughts on that? Do you think others could just as easily do the same and have it be a viable marketing tool for businesses and the public that would access it? If so, please explain why. I'd be very interested in your opinion on that.

TIA, lns

[AirPocketDrop___YES]

**ALERT Technical Outlook: Neomedia (OTC BB:NEOM)**

Descending Triangle Continuation.

Pattern Target Zone: $0.21 - $0.23

Pattern Failure Zone: $0.44 - $0.56

StockCharts Education:

http://www.stockcharts.com/education/ChartAnalysis/triangle-Descending.html

[gassman]

APD,

Thanks for the insight. Its good to hear both sides on this Neom thing. Unfortunately those "longs" are one sided "pro". What I have noticed is that of all the articles that site links to regarding the "wireles mobile" technology , NONE ever reference NEOM. Anyhow, searching for the next greatest "thing"

Gass

[Phil(Hot Rod Chevy)]

Holy crap, that chart looks like a mountain range instead of a few hills and valleys.

I might have to enter a buy when I think it's bottomed and wait a few months for the next pump.

LOL

Have fun,
Phil

[AirPocketDrop___YES]

Look at how it hit 2.333 standard deviations from the 200 dEMA, and then TANKED over 75%.

As Phil said elsewhere, if I could short these Pump And Dump stocks as easily as I can short an index; I'd be living on my own island with a crew of naked honeys.

[AirPocketDrop___YES]

NEOM SEARCH TERMS...

Dev-Tech Associates, Inc. -- NeoMedia's
predecessor, which was organized in Illinois in December 1989.



NeoMedia also has the following wholly-owned subsidiaries:


NeoMedia Micro Paint Repair, Inc., incorporated in Nevada;

NeoMedia Migration, Inc.,incorporated in Delaware;

Distribuidora Vallarta, S.A., incorporated in Guatemala;

NeoMedia Technologies of Canada, Inc., incorporated in Canada;

NeoMedia Tech, Inc., incorporated in Delaware;

NeoMedia EDV GMBH, incorporated in Austria;

NeoMedia Technologies Holding Company B.V., incorporated in the Netherlands;

NeoMedia Technologies de Mexico S.A. de C.V., incorporated in
Mexico;

NeoMedia Migration de Mexico S.A. de C.V., incorporated in Mexico;

NeoMedia Technologies do Brazil Ltd., incorporated in Brazil,

NeoMedia Technologies UK Limited, incorporated in the United Kingdom.

NeoMedia Telecom Services, Inc. in Nevada for the purpose
of acquiring BSD Software, Inc.


============================================================



During 2003, NeoMedia unveiled the go-to-market strategy for its PaperClick(R) suite of products. Over the past several months, NeoMedia has signed contracts with several key partners outlined in the strategy, including agents and resellers:

Big Gig Strategies (United Kingdom),
SRP Consulting (USA),
AURA Digital Communications (Australia),
Relyco (USA),
E&I Marketing (Taiwan),
Deusto Sistemas (Spain),
Nextcode Corporation (USA),
Jorge Christen and Partners LLP (Mexico)


===========================================================

CSI International, Inc.
BSD Software, Inc.
Secure Source Technologies
iPoint-media Ltd.
Shelron Group, Inc.
IPSO
Pick-Ups Plus Inc

===========================================================


The Company intends to license this intellectual
property portfolio to companies endeavoring to tap the potential of this
emerging market. To date, the Company has entered into such agreements with
Digital:Convergence, A.T. Cross Company, Symbol Technologies, and Brandkey
Systems Corporation. During 2002, the Company entered into an agreement with
Baniak Pine and Gannon, a law firm specializing in patent licensing and
litigation, under which the firm will represent NeoMedia in seeking out
potential licensees of NeoMedia's patent portfolio.

[AirPocketDrop___YES]

Gass,

As I see it, who cares if the patents are being "legally" substantiated until management provides adequate proof that they can provide a POSITIVE return on said assets?

There are countless millions of patents that are legally enforceable but never amount to diddly-squat in a financial sense.

Further, the specifics of the infringement claim are important given the dated-natured of the patents in a technological world that seems to be changing by the day. Are we certain that potential “infringers” cannot find a method to work around the “patents”; one that would be cheaper than paying NEOM?

With that said, the company’s financials are a complete mess and it is highly probable that any long term success, should it happen, will not be shared with retail common stock holders.

One more thing, the touts love to trumpet NEOM’s relationship with SAIC in regards to WordRegistry. SAIC has an extensive venture capital division—if the prospects for NEOM were so great and so probable, why is it that NEOM must seek sources of funding from notorious short-selling financiers? Logically, if NEOM’s prospects were even remotely bright; one might reasonably assume SAIC would not hesitate to infuse capital into the company. They haven’t, and by all accounts they won’t.

Happy Trails

[gassman]

AirPocket


I must admit you get slammed over there on the NEOM board, but I am impressed by your input content. Its off the chain! Really though do you see NEOM as being such a bad long shot?

Just wondering. Thinking about going and getting some because it seems that its patents are now being backed in the courtroom. Your thoughts

Gass

[AirPocketDrop___YES]

Yes, indeed.

By all means, continue bidding for the stock.

Let's see here, my first post to the NEOM thread was on May 30th, 2005.

To date, NEOM has never traded above the high print on May 30th, 2005.

At one point the stock was off 50% since my first post to the NEOM thread. It is currently off 30% since that date.

APD___YES speaks; the market acts. End of message.


>

[lesnshawn]

APD: Let's see here for a moment; I'm Coca Cola company and I have a choice:

1.) Spend hard earned advertising dollars to web-site search companies (google, yahoo, et al) paying fees to register words in a database query and retrieval system

2.) Pay nothing to them saving all that cash and just let end users do what they've already shown they can and enjoy doing-- finding Coca Cola through their local vending machine and grocery stores and entertainment venues.

Get with the times, APD.

What is NEOM's most valued asset? Patents. Oh, and they're proving to be solid as a rock.

Follow your own advice. What was that advice? Oh, yeah...buy as much NEOM as possible. Thanx, APD!

[Phil(Hot Rod Chevy)]

But bb,

I'm not the one that lacks intelligence.

You said that "AirPocketDrop___YES" had only posted on this board and the NWAU board.

He posts on several boards and has never posted on the NWAU board.

That either makes you a liar or an idiot.

Which do you choose?

It's your choice.

Have fun,
Phil

[Bertramboat]

You really aren't too smart. I haven't posted for 2 reason. 1st, I like to read the Pump and Dump Board. 2. The Pump and Dump Board doesn't have much activity. Other than today, the last activity was the 7/12, then 6/27 (almost 2-weeks.)

So, about 15 posts in 1-month (other than today) doesn't really call for active posting.

[Phil(Hot Rod Chevy)]

bb,

Your only posts thus far are on NWAU board and this one.


The person that assembled those posts has never posted on the NWAU board and only investigated the company because I suggested it was a pump and dump, which I believe it is.

But I see you signed up almost a month ago and this was your first post on Ihub.

Why.

Are you afraid of someone discovering the truth about NWAU?

And what part of any post on this board concerning NWAU did you consider a personal attack?

I think I'll get admin to check your alias against the regular posters on the NWAU board and see if we can get a match and uncover another multiple poster.

I think we'll find a match.

Have fun,
Phil

[Bertramboat]

Great post about NWAU, However. It sure seems like you have a personal axe to grind rather than promote a pump and dump. The chart over the last 12-months looks great. It seems they own 4 auto dealerships in Arizona. They have a technology division that does business with the Attorney Generals office in Washington DC and San Francisco. They are supplying GPS units to San Quinton Prison in California and doing business with Harley Davidson.

Don't post personal attacks here. This is for LEGIT P&D. Your only posts thus far are on NWAU board and this one.

PS. Pump and Dumps don't usually last 12-months without a dump. They last days/weeks.

[AirPocketDrop___YES]

Michael Fischer - First Financial Equity Corp (FFEC).

There is a individual at FFEC named Michael Fischer.

http://64.233.167.104/search?q=cache:-H7USgtemyQJ:www.bizjournals.com/phoenix/stories/1997/02/03/foc....

FFEC, a Scottsdale-based brokerage firm, was the underwriter of the proposed IPO of Webstation Com Inc.

http://biz.yahoo.com/ipo/p/wbis.html

Webstation Com never did go public and there is barely a trace of the company on the internet. However the company did file a Form S1 with the SEC on 11/18/99.

http://www.sec.gov/Archives/edgar/data/1099207/0000950147-99-001304.txt

The company names a Stephen J. Fischer as co-founder, president, director and CFO. The company also names Soleil Moon Frye (PUNKY BREWSTER!!!!) as a director, senior VP and secretary of the company. The filings states that Stephen is the son of a George Fischer. George Fischer is also listed as the father of Michael Fischer in the FFEC link.

I wonder if the Michael Fischer listed as a trader at FFEC is the same Michael Fischer that is listed as the domain registrant of nowauto.net, moahict.com and cossackgroup.com.

Incidentally in the FFEC link; a Stephen Fischer is also listed as a trader at the company.

[AirPocketDrop___YES]

The name Michael Fischer

is listed as the contact for the domains:

www.nowauto.net
www.moahict.com
www.cossackgroup.com

Mr. Fischer's email contact for the cossackgroup.com registration information is [e-mail].

A quick Google search returned the following:

Go Inkout Networks
Michael Fischer
7307 E. Indian Plaza #111
Scottsdale, AZ 85251

Here is are three complaints about the company:

http://64.233.167.104/search?q=cache:cymcQoDO0PgJ:www.complaints.com/november2002/complaintoftheday.....
http://www.complaints.com/september2002/complaintoftheday.september21.30.htm
http://www.ripoffreport.com/reports/ripoff23242.htm


Goink.com is also named on a "spam" watchlist:

http://66.102.7.104/search?q=cache:783OZW4w0YkJ:www.rhyolite.com/anti-spam/unwelcome-g.html+%22micha....

And Goink's webpage:

http://www.goink.com/

And goink.com 'whois' info:

http://www.networksolutions.com/en_US/whois/results.jhtml;jsessionid=V3SCYQRK10AW4CWMEAQCFFA?whoisto....



--------------



Here is a link that includes a Michael Fischer of a Scottsdale, AZ brokerage firm --- First Financial Equity Corp.

http://64.233.167.104/search?q=cache:-H7USgtemyQJ:www.bizjournals.com/phoenix/stories/1997/02/03/foc....


--------

Misc. link that provides tons of info on the NWAU.

http://www.duediligencenet.com/nwau/nwau.html

[Phil(Hot Rod Chevy)]

Great research APD,

I'll check it out later.

It appears network solutions webserver is currently down.

Phil

[AirPocketDrop___YES]

I Google Earth'd the Cossack Group's listed address at:

2339 N Hayden Road
100
Scottsdale, Arizona 85257
United States

It looks like the address is adjacent to a swimming pool; meaning the likelihood is high that it is a residential address (unless they do things a little different in AZ).





The listed address of Moahict Trading Group, Inc. --- as it appears as the registrant of nowauto.com --- is at:

11153 E. Karen Drive
Scottsdale, Arizona 85255

Which also appears to be a residential address.



The listed address of Moahict Trading Group, Inc. --- as it appears as the registrant of moahict.com --- is at:

7272 E. Gainey Ranch Road
Unit 53
Scottsdale, Arizona 85258

This address also appears to be a residential one, on the outskirts of a golf course community.

[AirPocketDrop___YES]

Wow...

A non-reporting (Pink Sheet) company that uses it's ticker symbol on the main 'corporate' page.

(See "About NWAU", between "Find A Vehicle" and "Investor Relations").

http://www.nowauto.net/


------------------------------------
The domain name is registered to:

Moahict Trading Group, Inc.
11153 E. Karen Drive
Scottsdale, Arizona 85255
United States
6024548988

With the contact listed as:

Fischer, Michael
[e-mail]

http://www.networksolutions.com/en_US/whois/results.jhtml;jsessionid=LWG1NCM45XQNOCWMEAQCFFA?whoisto...
-----------------------------------

"Moahict Trading" does not generate a return on Google:

http://www.google.com/search?hl=en&lr=&c2coff=1&client=firefox-a&rls=org.mozilla%3Ae...

However searching for only "Moahict" returns:

http://www.google.com/search?hl=en&lr=&c2coff=1&client=firefox-a&rls=org.mozilla%3Ae...

Which is a domain registered to the same entity with the same contract information as nowauto.net; however the registrant's address is different.

Registrant:
Moahict Trading Group, Inc.
7272 E. Gainey Ranch Road
Unit 53
Scottsdale, Arizona 85258
United States

Administrative Contact:
Fischer, Michael
[e-mail]

http://www.networksolutions.com/en_US/whois/results.jhtml;jsessionid=LWG1NCM45XQNOCWMEAQCFFA?whoisto...

----------------------------------------------------

Michael Fischer associates himself to Cossack Group, here is the website (notice the finance / trading theme):

http://www.cossackgroup.com/

----------------------------------------------------

The cossackgroup.com is registered to, who else, Michael Fischer, with yet another unique address and a AOL email address.

Registrant:
Cossack Group
2339 N Hayden Road
100
Scottsdale, Arizona 85257
United States


Administrative Contact:
Fischer, Michael
[e-mail]

http://www.networksolutions.com/en_US/whois/results.jhtml;jsessionid=LWG1NCM45XQNOCWMEAQCFFA?whoisto...
-----------------------------------------


Other domain names associated with the company (listed in the company PRs):

www.nowauto.com/

http://www.networksolutions.com/en_US/whois/results.jhtml;jsessionid=LWG1NCM45XQNOCWMEAQCFFA?whoisto...

www.nowgps.com/

http://www.networksolutions.com/en_US/whois/results.jhtml;jsessionid=LWG1NCM45XQNOCWMEAQCFFA?whoisto...

www.sunburstcarco.com/

http://www.sunburstcarco.com/

NWAU's share price has appreciated about 1000% in less than a year. The company does not file with the SEC.

[Phil(Hot Rod Chevy)]

I have a company that is nearing the top stage of a pump and dump, if it's not already at the top.

Check out NWAU.

Have fun,
Phil

[AirPocketDrop___YES]

Deemed worthly of deletion by NEOM thread moderators.



------------------------
LOL...

Or cell phone and PDA users can just use this..

http://mobile.google.com/

Let's see here for a moment; I'm Coca Cola company and I have a choice:

1.) Pay a technically bankrupt (negative shareholder equity) "technology" and paint chip repair company fees to register words in a database query and retrieval system with virtually zero penetration with end users.

2.) Pay nothing and just let end users do what they've already shown they can and enjoy doing-- finding Coca Cola through Google's search technology.

What is NEOM's most valued asset?

Electronic message threads saturated with starry-eyed, lottery-line dreamers being corralled and controlled by smooth, professional touts.