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You are right that they will have to sell shares(assets) to stay afloat.
One thing I havent heard any one here mention, especially those that were certain the acquired companies would take stock instead of cash, is the fact that in the new S-3 there were no additional shares registered to cover a stock settlement if that were to be the case. The only shares registered for these companies are the original shares.
I would think the company if they had successfully negotiated for these companies to take stock instead, would have averaged out the pps and registered a lump sum of shares to use to settle this issue with. So we can assume that at the time of filing the S-3, no such deal had been reached.
The reason thats important, is if this S-3 is approved, those funds become immediately due the acquired companies. If the S-3 isnt declared effective, several of these companies NEOM stock becomes sellable in February when the acquisitions closed, and the funds then become immediately due.
So, if the pps dont rebound between now and February to around .38, NEOM will have to pay out a lot of cash, in addition to the over 1 million due in December to the silent partners. And in February we wont even have the 1st quarter numbers yet, when all this money becomes due. Surely they arent going to make enough in the 4th quarter to cover this huge expense. You will see the SEDA used I expect to cover this if the registration statement is declared effective, which means a whole lot more dumping of shares by Cornell.
In MMs defense, he said he talked to someone very knowledgable about NEOM. That implies he wasnt talking to someone at NEOM. So the only alternatives are the PR department, or another poster, or a stock analyst. Certainly he wouldnt have to say "VERY KNOWLEDGABLE ABOUT NEOM" if he is talking to someone in the company, because its a given they are very knowledgable.
My theory is that he is talking with other shareholders, then presenting what they tell him here, as fact, and stating it in a way to make you believe its someone within the company.
Same with his posts the other day about the big money now coming on board, since there was a true reversal of the downtrend. The two days volume after those remarks was under 5 million shares a day. If thats the big money we are in BIG trouble. Now look at today. Where is that reversal he claimed was in fact upon us. And where is the big money he said since friday was ready to jump in.
I expect what we saw was day traders coming on board after seeing one positive day with an over 10 percent jump in pps. Thats why we are now retracing back to where we started in my opinion. Had nothing to do with big money as he stated mater of factly.
MM..you better ask that person to show you the revenue in NEOMs filings, if SYMBOL is selling so many agreements to use PC. It isnt there basically. I bet you talked to the PR department, who also claimed a year ago the EU wasnt ready for PC when they are 18 months ahead of the US......LOL.
As for the comment about plenty of time for counting when the dealings done. No doubt. The 6 million dollar question however is how long is it going to take to deal.
These general statements made by some to lead others to believe things are ready to explode are ludicrous. And anyone including a pr department can make them to stroke your ego, and keep you hanging in there. But they have no value when the revenue isnt there to support them.
I didnt leave out the agreement with airclick.......how much revenue is NEOM recieving from that agreement. Airclic as I explained buys an EULA from symbol so the end user can use the software on the scanner. Same as Microsoft selling a user an EULA to use windows on multiple computers. Then NEOM apparently gets a fraction of that in a royalty, but to date there isnt a lot of revenue is there?
What you are missing is the Motorola/Symbol deal has very little to do with NEOM. Much less then has been portrayed on here the past 24 hours.
Symbol does have the ability to install NEOMs PC on its bar code readers, but to date there is little evidence in the revenues that they have been doing so. Also the purchasers of those scanners do not pay NEOM a fee, they pay Symbol a fee for an END USER LICENCE. That is a lot different then paying NEOM a license fee for PC.
Secondly Symbol is the 2nd largest provider of scanners for the corporate world, not the consumer. Many of those corporate world clients dont even use the PC. They use the scanners for inventory control etc., as has been previously discussed here, which sends data to their own servers, thus not utilizing NEOMs IP period. So they can buy and use Symbols scanners, without ever buying or using an EULA for PC. And many of those customers are not using PC.
Symbol as one article posted here states, is in the business of wireless lans(WANS) mostly, and those are internet connection devices.
Think about it. They are 2nd largest in their industry. If they are collecting License fees for every scanner they sell, the fees to NEOM at this time would be huge, yet NEOMs financials show their are no real revenues from PC at this time. I mean significant revenues by the way.
Another big misconception being floated here is that Motorola may be the 800 pound gorilla now. Just more grasping for straws in my opinion. I doubt seriously that you will see this scenario unfold. Motorola already has the license to market PC through Symbol if they so chose to go that route, so nothing much would change, except the possible increase in fees to NEOM for the EULAs down the road.
Jonsie....your remarks earlier this morning about too many stops being taken out on low volume was right on target. Usually when you see that happen on the open its day traders jumping in thinking somethings about to happen. And usually if that the case by the end of the day they exit taking what profit they could get.
I am multitasking and thats why answers are short. I believe in one of the filings the CEO mentioned 12snaps competition and how they were not the biggest player in their market. So for MM to suggest that 1 piece is missing and it will propel NEOM is a way over statement in my opinion. It will take a heck of a lot more then gavitec and 12 snap to propel NEOM. I think every ones money is on QODE bringing in the big revenue, not 12snap or gavitec. Thats when NEOM will propel when Qode starts producing. To suggest the subs are the catalyst is a stretch. The subs right now are just extra gravy.
how much revenue will NEOM see from 12snap?
As I said the more you post the more you reveal about how little you know about this stock. What mistake was in your last post?
MM.....I have debated most of the day whether to use my last post to respond to many of your pump posts today, and you finally won out.
first to suggest after 1 good day that this is the big turn around is ludicrous at best. With the volume under 5 million I doubt this is the big turn around, and no stock continues to go down every single trading day. Thats right they have occasional good days in between, especially a stock like this with a float as big as it has. And speaking of big floats, i said 9 months ago if this stock cant average 5 million a day its not going far in a sustainable way, so we will see how far this rally goes.
Next repeatedly you keep boasting how smart you are compared to many here who bought much higher. is it that you are smarter, or dumb luck that you stumbled onto the stock much later and were able to get in at a far better price then many? Please fill us in on your research and how you determined when the right time was to buy? I bet NEOM wasnt even on your radar screen 6 months ago, and many of your remarks about TS and other things support that believe. So tooting your hown about how smart you were buying on the low is falling on deaf ears as far as I am concerned.
Your posting reminds me a lot of a poster i once knew called pumperpatrol. He would pump the stock for a week telling the other posters how big things were gonna happen the following week, and sure enough a week later on the exact dayn he predicted the volume shot up, investors who didnt frequent the board started buying thinking this was the big run etc. After 3 times of this we found out it was he and his partners doing all the buying and he at that point started telling us exactly when and how many shares he was buying. So he was controlling the run ups with his investor circle. i wonder if theres not some of that going on now as well with NEOM. By the way you know pumperpatrol dont you?
Great for you that you are almost even, but to laugh in the face of those that arent as you have done more then once is intolerable.
Brilliant?
I dont think it takes 30 years financial expertise for any investor to know,if the company wants to control dilution it can buy back any of its securities for the right price. That includes warrants, options, and even common stock. But the odds are you wont see NEOM buying back any of the aforementioned, because as he pointed out it takes cash and lots of it.
By the way Beam11 what are you talking about in this statement, which has nothing to do with the discussion of warrants...........
"""""states that they can make a choice, as in the $100 Mil, SEDA choice."""""""
The 100 million SEDA has zero, zilch, nada, to do with warrants. In the SEDA the company sells Cornell actual shares of stock at a discount, then Cornell dumps them on the market. There are no warrants involved in any of the SEDAs to date.
And yes under the SEDA Cornell dont have a choice, they have to buy the stock the company wants to sell them up to the limits specified in the agreement. Thats why NEOM had to pay such a high fee to get them to enter the agreement. They start out in the money based on the initial fee, and then are sold shares of COMMON STOCK, at a discount to market value, then dump them for even more profit.
yes they are issued or they wouldnt be called a warrant. And all options have expiration dates, warrants, employee stock options etc. They usually range from 3 years up to 10 years.
Also to comment on something that YJ said. NEOM can only buy back the warrants that are in the money, if Cornell agrees to sell them back. I dont believe I read in any of the agreements, where NEOM can force them to sell NEOM the warrants that are in the money. If they dont like the offer from NEOM and think they could do better exercising the warrants and selling the shares on the market, its their choice not NEOMs.
Wrong Beam11........That person stated that they always sold the shares AFTER CONVERTING the WARRANTS. They first have to decide whether they want to convert the warrants into shares. And their history is that they have [b}ALWAYS SOLD THE SHARES after they DECIDED to CONVERT THE WARRANTS. The decision to convert or not IS THEIR DECISION, and the actions after that conversion have ALWAYS resulted in them selling the shares.
You seem to like to harp on that using ALWAYS and NEVER, but the history is what it is. To this day Cornell holds NONE of NEOM stock after all the warrants they have converted. Maybe you should find someone else to attempt to discredit, or at least read the posts of that person you are attempting, before coming out and making such false statements. Go find a post where I said Cornell always exercised all warrants assigned to them? NEVER said it, because there are many not in the money, and Cornell would NEVER exercise warrants for a higher price then market value at the time. And I would never use the words BUY WARRANTS as you stated. They dont buy warrants they exercise them, when the time is right and they can make a profit.
The answer is that any warrants issued are Cornells to exercise if they chose. The company has no control over that once they signed the warrants. Cornell could decide not to exercise if the pps never reaches a level where they can make money off the warrants before they expire, but the company can not tell them what warrants they can exercise, or when they can exercise them.
Doubts about .35 for 06. The stock will trade over 1.00 a share at some point, but its not going to happen in the next 2 months, or even the next 6 months in my opinion.
How do you figure taking years to recover, and buying more shares is FLIP FLOPPING. They way I understood his post is he dont mind it taking years to recover, and thats why he is still buying. Unlike many here that expected it to happen in less then a year, he is just pointing out, it will be longer, as some here have also stated over the past 9 months. So he has a higher risk tolerance and is still willing to buy. I think he made that clear many months ago, when he said he was young, and had many years to wait for it to materialize, if I am not misquoting his posts of late 2005, early 2006. But I guess if you dont agree with that assessment, then the only spin is its flip flopping.
MM...you are always advocating how much of a short term gain is possible on this stock. Are you day trading? You certainly are implying others should be when you keep suggesting the gains that gain be had on small pps rises. Is that why all the hype since you started posting? Did you buy the stock to day trade it, and it dropped and you now have to get back to even? This is not an attack, I am just trying to understand your trading strategy, and whether you ever bought the stock as a long term hold or not? Yes if NEOM goes to .15 thats a 25 percent gain to anyone who manages to buy at this level. But you are not preaching to the choir on this message board. Most here bought well above this level, unlike you, and at .15 many are still down around 60 percent including myself, and many are already all in, because they followed the crowd every time the pps dropped and they were told to buy more on the dip. Maybe a different message board where they havent heard of NEOM will get better results and get the pps bask up so you can break even.
Message boards are commonly used by newbie investors that dont know how to do DD on their own. How many times on this board alone, did someone ask how to find the SEC quarterly report others were commenting on. Just last week how many asked how to locate the Reuters report?
The avaerge individual investor, with an online trading account, does not no where to go to do DD and they rely on others on these message boards to provide them with the info. Thats why online trading is a dangerous thing.
So having said that, last week I went reading some of the old posts by some here and its incredible that 2 years ago the same posters were saying the same things, which never materialized. I guess if you are consistent and keep saying it, sooner or later you will be right. Even if its 5 years out. The problem is with someone pumping the stock, with future predictions, its hard to prove them wrong on something that hasnt happened yet. But it feeds the frenzy of those unskilled investors, who want something to validate their buying the stock. The same holds true for the so called basher. You cant prove their future predictions wrong either, although many here launch all out attacks in an effort to prove them wrong. And when I say prove them wrong, I use a 12 month time table, not a 2 or 3 year moving metrix as some here use.
Here is a good example of those erroneous predictions. Notice June has come and gone and the pps was no where near 1.53, and this prediction is from one of the top most respected posters here.......there are many more like this, and in each case, not just on pps, but on what was supposed to transpire, the majority of them have been wrong. So as its been stated here, by others time will tell. And a reasonable amount of time is 12 months, not years as some here now want to elude they meant.
Here you go.
June 1.53
December 1.90
High for the year will be 2.25
the reuters report mainly covers the past 3 years activity, and we already know whats happened in the past 3 years. As one poster here pointed out, the report is as much negative as it is positive, based on the past performance.
JP......to use your phrase, even a trained monkey knows that NEOM does not have the staff to handle a fully launched Qode. So where do you get the headcount of 140 after attrition?
Secondly you say they will sell paint for 12 - 16 million and that will carry them 13 - 17 months. Thats based on your speculation forst of all that they will get at least 12 million. Secondly if the above is true and they have to hire more personnel to enter all the data, you dont have a clue what their burn rate will be. But even if the burn rate is the numbers you suggest, you would be very lucky to get 12 months out of the sale of paint proceeds. Did you gotget the payment due the silent partners on 31 December 2006, of over 1 million? Did you forget all the acquisitions become sellable in just a few months and at todays pps, its over 30 million the company owes them in cash? That 12 million isnt going to go very far under the current circumstances, and even a trained monkey knows that.
Next how do you figure a 100 million deal over 10 years brings the share price to 1.50? You dont count 10 years worth of revenue to calculate pps. You say 10 mil/month..dont you mean 10 million a year?
You can not count a dime of the paint business at this time, because its owed out and then some, if the pps dont get back to .40 by february of 2007.
Goomba...........you sell whenever the stock price reaches the limits of your comfort level. Every investor has a different comfort level, and if you believe that one day the stock will make you money, and the money you have invested isnt hurting your lifestyle, then its not a bad idea to hold on if you are a high risk taker. A low risk investor would sell at about a 10 percent loss limit, and a medium risk investor would sell at the 30 - 40 percent loss.
Again it all depends on your life style and how much you have invested, and your risk tolerance.
Thanks Peeveecee.....we will find out in the next year or so, when this technology really rolls out. For now the big guys are content to let NEOM and the others have their day in the sun, because these guys know its not time just yet. Cell phone pricing has to come down, G3 needs to be in place, and the standards have yet to be adopted on how carriers will stream advertising etc to cell phone users on an OPT IN basis, to geograhpically offer them things of interest in their areas. Before all that happens all you will see is these small campaigns here and there, that amount to about no profit.
Gee, you all were jumping up and down with joy when the announcements came out of the acquisitions, and this board was filled with posts about how great these companies were. Now that NEOM backed out of the deal, you all say you didnt want it anyway because of the dilution...Now thats funny.
Because Reuters writes these reports on about every BB stock out there. they make money from selling the report. plain and simple. Check all BB companies and you will see the same 11 page report and you will see the same report available. Its not analyst coverage, its a report. By the way even pink sheet stocks that dont even report to SEC get reports written on them monthly. Nothing unusual about it at all.
you are right. Their SPECIFIC process is patented, and there will be a ton of companies that develope a different process with the same end result. Thats what he is saying. just look at internet advertising. One company started out holding the patents, and that company is now on the bottom of the food chain, begging for revenue, while literally hundreds of start up companies years later are doing exactly what this company does and they are profitable and do not have licenses from this company. Thats the point Retired is making. So many here are in the mind set that these patents are the only bridge to get direct connecttion. They are not and they wont be the only process. The real issue will be whose process will the bulk of clients flow to. And I have to think if microsoft and google come up with their own processes to accomplish the same thing, NEOM will be left in the cold, with the small niche market, just as happened to the internet advertising company.
How do you figure he retreated? Do you not think that if you say there are many ways to do something, and then later say there will be even more ways later, those two statements are consistent with each other?
Yes we all know there are ways now, and there will be many more ways and companies later as this technology takes off. thats usually the way with any business. So I dont understand your word RETREAT? Maybe you should do the research that was suggested, because I can guarantee you there will be many companies doing what NEOM claims they can do, without a license from NEOM.
As has been stated here by myself, and also someone that has first hand knowledge, patents are easy to work around, when you have the smarts that google and microsoft haveworking for them.
but if you are idle 20 minutes they stop updating. I think its 20 or 30 minutes.
That ones quite simple actually. Look at the developements of the past 12 months and you should be able to figure out who is on the up and up and who is not. Many things have been said will occur in that period, and have any of them materialized to date? I dont think you will ever see a supposed basher pretending to have inside knowledge, as you do some from the other camp. That should be a red flag as well. In the investment world, if someone is suggesting they know something you dont, and they cant point you to a public document to support their claim, then ther is something amiss.
Spin is spin, and both sides do plenty of that. claiming you have info or insinuating you have info is a whole different ballgame.
To expand on what I just posted Cjak, that means the highest price Cornell will have to pay on the 5 million debenture is .15 a share. I believe the debenture is good until 2009 so they can convert any time between now and then at a maximum cost per share of .15, so as you see the discount is limitless basically, because anything can happen between now and then. The stock could be 100.00 a share and they still convert at .15
Cornells conversion prices are at a discounted rate to the average closing price during a certain time. However they arent the 30 - 35 percent that you are hearing. I think all of theirs is 97 percent of the LOWEST closing price over a 30 day time. That could be huge however.
For instance lets say NEOM stock is at .20 a share, and over the next 30 days shoots up to 1.00 a share. Cornell gets to convert their shares at 97 percent of the .20 price since its the lowest price over the 30 days. So they could convert at .194 a share or an 80 percent discount to market. There are several different options or warrants for cornell so I have to go back through all the agreements to confirm that. Some of their warrants are at a fixed rate and therefore not like that scenario, but I believe some of the older ones are?
I just went and check on the latest 5 million debenture and that ones at 90 percent of the lowest closing bid price or .15 a share, whichever is lowest at the time of conversion.
""""""""""During August 2006, we sold to Cornell Capital Partners a $5,000,000 Secured Convertible Debenture that is convertible into shares of our common stock at the lower of (i) or 90% of the lowest closing bid prices of the common stock for the 30 trading days immediately preceding the conversion date, or (ii) $0.15 per share""""""""""
Success..did you do a search of NEOMs trademerks.........its quite funny. Back in 1999 I believe is the date they tried to trademark wishlist and deliveryman....LOL both have since been abandoned
Careful...he said introduce Qode to the UK market. Is that a launch or another pilot..LOL
It was stated here the other day that the average age of the BOD is 65, and therefore you have nothing to worry about. The truth of that matter is, that fact alone should cause worry. How many executives out there today, including the ones in most of the acquired companies, have not in their early years took their ideas and ran with them, and today are sitting pretty in their 30s and 40s. Like the Bill Gates of the world and Googles founders etc?
Something else that keeps getting mentioned here is how NEOM has all this new talent helping them get things straight, due to the acquisitions. People, this new talent is still busy running the business' they were running when NEOM bought them. Its not like these new talent all now are in FT. Myers helping NEOM with Qode. They are working on their separate aspects of the business, which may or may not be tied into Qode.
Does anyone here really think the heavy hitters out there would of taken this long to get their break through technology out on the markets to the public. The company commented in a public interview they were years ahead of theirselves, and had no vehicle to launch their product, until photo cell phones came along. Hello, how many years is it now photo cell phones have been on the market and the product according to some here still isnt launched.
Speaking of that, some here have stated the pilot program was not a launch of Qode, yet this morning we see a new article out of Europe, where Copus was interviewed for that article, and they state that Qode has been launched in the US and will later be launched over in Europe. So we cant even get a straight message on that. I believe someone here quoted an email from Fritz stating this pilot was not a launch, yet the message coming from Copus apparently is that this is the US launch.
Baem11.since your post attempting to insult me has been up a day now, I hope I get the same respect from the moderators in my reply.
Big deal I dont have a degree in accounting. Whats that mean anyway. I have worked with certified accountants that couldnt even get a monthly financial report right without me correcting their errors. And how many people do you think are working for NEOM that have degrees that cant get a filing or a pr right?
As for the size of the corporation I was a treasurer for, you dont have a clue, so your attempted insult falls on deaf ears. By the way I was also a board member so dont leave that part out either.
As for my knowledge of accounting, between my hands on experience(which many companies value more then someone who is book smart but without hands on), my sister is a degreed certified accountant, and runs her own business for the past 8 years.
And by the way, how many brokers and stock analysts are degreed accountants? Funny most arent but they too know how to read a companies financial statements and advise investors on the company. So whats your point?
someone has to keep track of what customers bought what keywords and enter that info into the servers, as well as make sure the billing goes out and log the customers contact info etc. And thats just for the keyword aspect of what NEOM is offering. Then those who want to have direct access from their own barcodes have to send them to NEOM somehow, so NEOM can register and link them to that customers website etc? Remember the barcode has to be modified to include a character that links to that customer and not the competitor. There is a lot more to it then downloaded the barcode onto neoms servers or neoms database.
Jonsie..as you have seen less then 2 percent of the 307 companies met your initial requirement, and many of these are very well established companies, with huge footholds in their industries.
Then when you lowered those requirements by half for the P/E you come up with 44 or about 14 percent of the 307, and again the above applies.
Do you really think NEOM will fall in somewhere in that top 14 percent in the first year? First of all the first year of the launch is when the highest costs will be incurred, to ramp up personnel etc. In my opinion they would be ucky if they can achieve 1 percent net profit margins during the first year. Especially given their record of not getting things right the first time as we see with every document filed. So lets assume the next 12 months they do make sales of 1 billion dollars. At 1 percent that would put them with a net profit of 10 million, and I will almost bet you will not see 10 million net profit for 2007. There is not enough exposure yet, the infrastructure isnt in place yet, and the demand isnt there yet to produce those numbers in my opinion.
Remember we are talking a year from now, which is the end of 2007 as well, Since the product isnt really launched at this time and we dont know when it will be in the next several months. So by the end of 2007, they could possibly have 1 billion is revenue or 1.00 a share. But keep in mind as well the share count more then likely is going to be closer to 2 billion by then with all the new shares coming on board. I think the S-3 states something like 1.6 billion altogether and you have to believe that numbers gonna grow, because NEOM still does not have cash for any of 2007, so they will be selling more shares under the SEDA. Especially if they have to ramp up personnel and equipment.
How do you figure that?
Dont forget to take into account, if NEOM was able to register 3 million bar codes they will need to do some hiring to process the calls and enter the data into the system.
Another factor is NEOM is not merely a software company. They plan to be the works, which means adding a lot of equipment as demand grows, maintenance staff to keep the equipment up and running and do routine maintenance etc. So you arent going to see their net margins improve a whole lot as this kicks off.
And there arent many companies who go from significant losses to 3 percent net profits in a couple of quarters.
And keep in mind the average software company, once they design their software and burn it to disc, the revenue flows in from the sale of the disk. All they have to do is ship the product out the door and the revenue is in their hands. Oracle and others are so well known the consumer goes online looking for their software, they dont have to find the consumer. For NEOM that wont be the case, they will have to be actively persueing the consumer to get them to register barcodes with them, and not with the competition, since they are an unknown at this time(or nearly an unknown).
right...based on 1 billion shares outstanding. The pps would be .20 at a P/E of 10
Beam.I never said it was an operating expense. I just went back this morning and read every post in that debate(something I suggest you do), and I never even brought up the issue of the dividends being on the financials. You brought it up and its in the record. But you didnt say they wouldnt be on the operating expense sheet, you said the dividends wouldnt be in the "FINANCIALS, and you were wrong because they are included on both the Operating sheet and the cash flow sheet which are both a part of the FINANCIALS.
It is however included in the Operating sheet as a portion of the NET LOSS TO SHAREHOLDERS on page 2 of the FINANCIALS.
All of a sudden you have come up with this word OPERATING expense, a word you wont find in any of my posts during that debate.
No one has said anything about cash flow by the way so whats your point? And why are you so intent on raising and rehhashing this old issue? Is it to deflect attention from your post this week claiming you never said preferred was a better means of financing, which I proved you did state? Or are you just trying to get me to use up my 15 posts on an old mundane issue?
The bottom line is that the dividends are in the Q1 financials on pages 2 and 3, contrary to what you said in your post before those financials were released. Its in black and white and not arguable, especially when it says DIVIDENDS FOR PREFERRED STOCK.
And dividends take the place of interest but ammount to the same thing, so what are you going on about interest for. The dividends on the preferred are at 8 percent, the same amount NEOMS promisory note to Cornell was at at that time. One was interest, the other dividends, but both 8 percent, so rthere was no savings under the preferred. The only thing it accomplished was increased cash flow as you point out. And the company paid 20 percent in fees as we discussed to arrange the preferred. Over 2 million to the firm that prepared the agreement, and the discounts to cornell on the conversions etc came out to about 20 percent.
And those are the facts.