Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
What your really saying here is that if common shareholders panic sell into these circumstances, and establish a lower look back conversion price they play right into YA's hands, meanwhile, they slit their own throats!
Before I go fishing, I was just thinking to myself how hosed our buddy's at YA would be if our other buddy IM, came up with 2.5mil plus 10% and redeemed those Series D right about now! With the lock up language that is currently in place and no Series D votes available, us commoners would once again have voting control. YA could not convert, would not get their RS, nor their Par reduction. Sell the sucker now IM, I would pay dearly (my share of 2.5 mil at least) for that last laugh.
Where is my rights offering and what debt will you pay off first IM?
See what a little alcohol and a vivid imagination can come up with!
Good math, the problem is that pesky Certificate of Designations that give the holders of Series D 100,000 votes per share regardless of the par value.
Voting Rights Section 6
http://www.sec.gov/Archives/edgar/data/1022701/000114420410001444/v170704_ex3-2.htm
Have a good weekend, I'm goin fishing.
Initial dollar amount converted = $549,296
Initial shares acquired = 45,774,719
Shares sold = 24,509,250
$ value of shares sold = $351,209
Shares remaining = 21,265,496
Initial value - recovered value = $549,296 - $351,209 = $198,097
$198,097 divide by 21,265,496 = .0093
No sales of shares by YA after Dec 17 through date of filing. The drop from .01 to .005ish was all retail/common stockholders.
IMO the same group could move it the other way until the SHM.
Of course YA knew all along that the 8k would cause pps decline from .01 and that they were going to get a 125 day look back period for future conversions. So they effectively pole vaulted the wall you refer to. They just gotta wait a little while.
They currently hold 36mil shares at a cost basis of somewhere near .01 so they can only recover if the PPS rises on those shares.
I'll break it down for you Neil, you need to understand how this works.
On Dec 1 YA converted roughly $549,000 worth of convertible debentures into 45,000,000 shares of common stock at a conversion price of $.012 per share. They immediatly started selling those shares into the market begining at $.016 per share and continued dumping them, driving the PPS down from .016 to .01 within a couple of weeks. In doing so they added 24,500,000 shares to the float and recovered $351,000 of their initial cost leaving them with a balance of $198,000 as yet unrecovered but they also still have 21,000,000 shares at an average cost of .0093.
If you just look at the shares sold so far and the cost basis of those shares, they have recovered roughly a 19% return so far.
Just playing with the last filing disclosure on YA trading activity in December. Shaded cells are my numbers.
http://www.sec.gov/Archives/edgar/data/1022701/000114420410002825/v171834_sc13d.htm#ref.id0enc
Not sure, but I reviewed the last 10 or so decisions issued by the board and all of them took more than two years from the notice of appeal. Not expecting anything for at least a year myself.
Pick any decision then click on the application number, then "all documents" for decision time line.
http://legal.european-patent-office.org/dg3/updates/2010_01_13.htm
Very nice exposure!
Neoreader is not a recomended reader though
http://www.gmc.com/granite/#/instructions
I don't think we will see any additional dilution until after the SHM. YA just acquired their 52% majority and I'm almost certain they will not lose it through dillution until they've had a chance to use it. It's up to the retail investor as to where this heads in the short term IMO.
Your welcome, and for the record, I personally do not think we will ever see anything anywhere near the devastating potential that that spreadsheet details. I still plan on making a very nice return here. Keep an eye on the low close during the lookback period. Therein lies the the key to the future IMO.
Arpvrp, while I agree with a good portion of what you are saying here, I thought I would comment that your dividend vs interest statement is not quite accurate. The Sereis C provides for dividends at 8% also. So for the sake of accuracy, the preferred stocks accrue dividends and the debentures accrue interest.
GLTU, I always enjoyed your commentary and have held your comments in high regard.
krays
2.1. Dividends or Distributions. The Holders of Series C Preferred Shares shall be entitled to receive dividends or distributions on a pro rata basis
according to their holdings of shares of Series C Preferred Shares when and if
declared by the Board of Directors of the Company in the amount of eight (8.0%)
percent per year. Dividends shall be paid in cash or shares of Common Stock
determined at the then current Conversion Price (provided such stock is
registered for resale by the Holder), as determined by the Comapny. Dividends
shall be cumulative. No cash dividends or distributions shall be declared or
paid or set apart for payment on the Common Stock in any calendar year unless
cash dividends or distributions on the Series C Preferred Stock for such
calendar year are likewise declared and paid or set apart for payment. No
declared and unpaid dividends shall bear or accrue interest.
http://www.sec.gov/Archives/edgar/data/1022701/000114420406007024/0001144204-06-007024.txt
The buyer - This is a percentage of sale price move IMO.
Question for the board - The Certificate of Designations for the Series C was just ammended to a fixed conversion price of $.50 on Jan 5th. Prior to that ammendment the last 10Q quoted a fixed conversion price of $.02 (reduced after the originall issue at $.50). My question is will the fixed conversion price post split be $.50 - $2.00 or $50.00? TIA
The new Series D fixed conversion was quoted at $.02 on Jan, 5th and I am expecting $2.00 post split but the C's have me a bit confused.
FYI, a $.40 gain on a $.60 investment would be 66% gain, not 40%
If the PPS goes up and stays up, were good but if it goes down we're hosed
Just thought I would do a few calculations working off the recent beneficial ownership filing by YA as a guide. I am attempting to understand potential post split share structure at various look back prices. Interest is not used in the calcs and I am not sure what happens to the Warrants but I am assuming that the underlying shares would be reduced by the same factor as the RS. Font in blue provided by YA and black are my calcs.
Explanation of Responses:
1. YA Global Investments, L.P. ("YA Global") directly owns 36,331,729 shares of Common Stock. As the Investment Manager of YA Global, Yorkville Advisors, LLC ("Yorkville") may be deemed to beneficially own the 36,331,729 shares of Common Stock beneficially owned by YA Global. As the president of Yorkville, the investment manager to YA Global, and as the portfolio manager to YA Global, Mark Angelo ("Angelo") may be deemed to beneficially own the 36,331,729 shares of Common Stock beneficially owned by YA Global.
2. These derivative securities are presently exercisable, however each of the identified derivative securities has a cap, which prevents the holder of each derivative security from converting and/or exercising it if such conversion and/or exercise would cause the aggregate number of shares of Common Stock beneficially owned by such holder and its affiliates to exceed 4.99% of the outstanding shares of the Common Stock following such conversion and/or exercise of the derivative security.
3. These derivative securities are Series D Share entitles Yorkville to vote on an as-converted basis with the holders of the Company's common stock, par value $0.01 per share ("Common Stock"), for a period of one hundred twenty (120) days following the effective date of the Series D Certificate, resulting in one hundred thousand (100,000) votes for each one (1) share of the Series D Shares. Commencing ninety (90) days from the effective date of the Series D Certificate, no holder of the Series D Preferred Shares shall be entitled to convert the Series D Preferred Shares to the extent, but not only to the extent, that such conversion would, upon giving effect to such conversion, cause the aggregate number of shares of Common Stock beneficially owned by such Holder to exceed 9.99% of the outstanding shares of the Common Stock following such conversion and/or exercise of the derivative security
4. As the Investment Manager of YA Global, Yorkville Advisors, LLC ("Yorkville") may be deemed to beneficially own the convertible preferred stock beneficially owned by YA Global. As the president of Yorkville, the investment manager to YA Global, and as the portfolio manager to YA Global, Mark Angelo ("Angelo") may be deemed to beneficially own the put option right beneficially owned by YA Global.
5. As the Investment Manager of YA Global, Yorkville Advisors, LLC ("Yorkville") may be deemed to beneficially own the convertible debenture beneficially owned by YA Global. As the president of Yorkville, the investment manager to YA Global, and as the portfolio manager to YA Global, Mark Angelo ("Angelo") may be deemed to beneficially own the put option right beneficially owned by YA Global.
6. As the Investment Manager of YA Global, Yorkville Advisors, LLC ("Yorkville") may be deemed to beneficially own the warrant beneficially owned by YA Global. As the president of Yorkville, the investment manager to YA Global, and as the portfolio manager to YA Global, Mark Angelo ("Angelo") may be deemed to beneficially own the put option right beneficially owned by YA Global.
7. Except for the 36,331,729 shares of Common Stock and the Derivative Securities beneficially owned by YA Global, the other Reporting Persons disclaim beneficial ownership of these securities except to the extent of his or its pecuniary interest, and its report shall not be deemed to be an admission that any Reporting Person is the beneficial owner of these securities for the purpose of Section 16 or for any other purpose.
8. N/A
9. These derivative securities are presently exercisable, however each of the identified derivative securities has a cap, which prevents the holder of each derivative security from converting and/or exercising it if such conversion and/or exercise would cause the aggregate number of shares of Common Stock beneficially owned by such holder and its affiliates to exceed 9.99% of the outstanding shares of the Common Stock following such conversion and/or exercise of the derivative security.
10. Each preferred share converts into 1,000 shares of common stock, priced at $0.50 or 97% of the lowest closing bid during the previous (125) trading days
11. Each preferred share converts into 100,00 shares of common stock priced at $0.02 or 97% of the lowest closing bid during the previous (125) trading days
12. $0.01 or 80% of the lowest bid for the previous (125) trading days.
13. $0.015 or 80% of the lowest bid for the previous (125) trading days.
14. $0.01 or 90% of the lowest bid for the previous (125) trading days.
15. $0.02 or 95% of the lowest bid for the previous (125) trading days.
16. $0.02 or 90% of the lowest bid for the previous (125) trading days.
Series C - 27000 authorized 22000 issued in 2006 the other 5k were never issued.
http://www.sec.gov/Archives/edgar/data/1022701/000114420406007024/0001144204-06-007024.txt
According to YA's beneficial ownership filing, they seem to believe that they hold more Series C than the company does. Last 10Q reported 9859 and subsequent events reduces that by another 700 leaving a balance of 9159. According to YA's filing they say that they own 14,113 for a difference of 4,954 Series C. Guess that conversion below par issue is not yet fully resolved!
******************************************************************
As of September 30, 2009, 12,141 shares of the original 22,000 shares of our Series C preferred stock have been converted into our common shares, leaving 9,859 shares, with a face value of $9.9 million outstanding.
On October 13, 2009, 300 Series C preferred shares were converted into 30 million common shares. On October 19, 2009, 100 Series C preferred shares were converted into 10 million common shares. And on October 23, 2009, 300 Series C preferred shares were converted into 30 million common shares.
http://www.sec.gov/Archives/edgar/data/1022701/000114420409059720/v165767_10q.htm
******************************************************************
Series C 8% Convertible Preferred Stock (9) 02/15/2009 Common Stock 14,113 $ (10) D (4) (7) (9)
http://knobias.10kwizard.com/filing.php?param=&ipage=6696283&DSEQ=1&SEQ=&SQDESC=SECTION_INSIDER&exp=
Thanks Claw, I see that now (date hereof) I guess that satisfaction of conditions doesn't mean all conditions, just the ones important to YA.
Not closed yet to my knowledge but no vote required if conditions of closing are met. See Arpvrp's last post for the detail.
All sounds pretty familiar!
Microsoft Tag, the Future of Mobile TaggingLinking real life with the digital world
By Marius Oiaga, Technology News Editor
9th of January 2010, 12:00 GMT
Microsoft Tag was introduced at the 2009 Consumer Electronics Show in Las Vegas. One year later, coinciding with the first anniversary of Microsoft Tag, Softpedia is glad to offer you an insight into the future of mobile tagging.
1. Please tell us a bit about yourself and your role with Microsoft.
My name is Aaron Getz and I’m the Product Unit Manager for Microsoft Tag.
2. First things first, what’s Microsoft Tag? Please talk a little bit about the technology behind the project.
Microsoft Tag allows for almost anything in the real world to be quickly linked to an interactive experience on your mobile phone. A Tag is a small barcode, optimized for reading with a cell phone, that you can print, stick, or display just about anywhere. When you scan it with your camera phone, it automatically opens a webpage, dials a phone number, or takes some other action on the phone. This allows people to easily access things like video clips, Web sites, contact information and special offers for items they see in the real world. For example, if you include a Tag on your business card, a new acquaintance can snap a picture of the Tag from their camera phone and automatically upload your contact information to their mobile phone.
Microsoft Tag is based on a new type of barcode, developed by Microsoft Research, which was designed to be able to be read from any Internet connected camera phone. You just need the free Tag Reader application, which is available from gettag.mobi for every major phone platform.
3. What are the advantages of High Capacity Color Barcodes (HCCBs) versus older QR code standards?
Because QR Codes haven’t taken off outside of Japan, we decided that we would take the opportunity to move this technology forward with a next generation solution that offers a number of advantages.
In terms of the barcode itself, Microsoft Tags can be much smaller than QR Codes. They take up less than 25% of the space of a QR code, which makes them much more practical on product packages, business cards, and magazine advertisements. Tags can also be customized, allowing businesses and consumers who use Tags to add their own branding elements to the Tag.
Also, unlike QR Codes, Microsoft has developed an end-to-end solution that integrates the barcode, with a standard set of Tag Reading software, and a backend with built-in reporting and other functionality. This end-to-end approach makes it much easier for both businesses and consumers to take advantage of mobile barcoding and will allow us to continuously evolve the system with additional functionality.
4. Microsoft Tag’s customization options are fascinating; please tell our readers more about the personalization of tags.
As I mentioned above, the ability to update the experience behind a Tag offers a great deal of personalization. Aside from that, we now offer the ability to create a customized Tag. We’ve seen some companies incorporate company logos, artwork, etc. into Tags.
To view instructions and guidelines on how to create a custom Tag, you can go here.
5. What is the best place to start building tags for a company? Please point business users to what you consider to be the key resources that will help them embrace Microsoft Tag.
It is incredibly easy to start creating Tags. Just go online to tag.microsoft.com, sign-in to create an account, tell us what you want the Tag to do, and then download a graphic file containing the Tag. Companies and consumers can learn more at www.microsoft.com/tag. We also have an active online community on Twitter and Facebook, which serves as a great resource for technical and design usage.
6. Can you enumerate some benefits for end users?
Every Tag is an invitation to try, discover, share, save and do more. Get more information on products you’re looking at, make use of coupons and exclusive discounts at the time of purchase, conduct product comparisons right before making a purchase decision, listen to a cover track or watch a music video from a local band before buying tickets to an upcoming concert, make purchases without standing in a checkout line – act when you want, where you want.
7. How about benefits for businesses?
Tag offers businesses an interactive, personalized way to interact with customers and the possibilities are truly endless. For example, a car company can take out a print ad in a national news outlet with a Tag that would direct consumers to their local dealership’s website and offer the option to sign up for a test drive. Dealers could publish ads in local newspapers with Tags to direct consumers to additional information about a car on their lot (a slideshow of images to show what the car looks like, mileage details, relevant warranty information, etc.). Dealers could also do scavenger hunts to encourage consumers to look at multiple models on the showroom floor or include Tags on brochures of new models so customers can view images, financing specials, or even videos of the car in action from their mobile phone.
Tag also brings new life to print. For example, Golf Digest included Tags in a recent issue to accompany select articles, allowing users to not only read golf instructor Jim Flick’s tips on how to achieve the perfect putt, but to watch a video demonstration straight from their mobile phone while reading the article.
Other scenarios include customers like GVB in Amsterdam who are using Tag to give public transportation customers bus schedules and other related information. In Italy, businesses are starting to integrate Tags right into their yellow page ads as a way to help consumers learn more about their products and services. In Turkey, the major TV guide is using Tag to provide more information and trailers of shows.
And it’s not just brands and businesses who are excited about Tag – developers are also jumping on board. The response has been positive, and we’re seeing our developer community create great applications, like the one you can find at www.maketag.com. Our traction with developers is further evidence of how easy it is for businesses to get started using Tag.
8. In the end it’s all about marketing, attracting new customers, building brand loyalty and so on and so forth. How does Microsoft Tag help in this regard? How can business measure the impact/effectiveness of leveraging tags?
Companies can use Tag to connect with customers in new and unconventional ways, providing customers with more information at their fingertips, quick transition to purchase decisions, and interesting ways to join brand communities. Tag gives companies access to analytics that can inform their marketing strategies, helping marketers make effective and efficient decisions about their marketing spend.
9. What about availability? When will Microsoft Tag grow to cover additional markets beyond those in the Beta program?
Tag is available for use [of] everyone worldwide.
10. Speaking of which, when do you plan to remove the Beta tag? Should businesses expect any changes as Microsoft Tag evolves during/past Beta?
We still think of Tag in beta primarily because we continue to evolve the features and services of Tag; once we’re closer to our larger vision of what Tag can be, and as the ecosystem matures, then we will consider removing the beta label. For now, Tag is ready for prime time, mass usage – and we’re certainly seeing it.
11. Can you offer some sort of statistics related to adoption so far? How many instances of the phone app have been downloaded? How many businesses are leveraging the technology already? How many are personalizing their tags?
We are not able to share specific numbers with regard to how many Tags have been created – it is difficult to track because anyone can go to the www.microsoft.com/tag site and create their own Tag. We can share that Tag has thus far exceeded our (big) expectations for adoption and usage – a trend we expect to see continue.
12. Microsoft Tag is free in Beta. What about after it is launched? Do you have a pricing model? How much will customers/businesses have to pay?
Our business model will likely be more of a value added services model. For example we could offer the ability to customize experiences based on the gender, age, and interests of the consumer snapping the Tag. We could potentially charge users for the ability to view the analytics behind the Tag such as how many users snapped an image of a specific Tag.
13. On the Microsoft Tag blog (http://blogs.msdn.com/tag/), you feature numerous examples of businesses that are using Microsoft Tag. Can you select a handful of adopters that you are most proud of?
We have seen a lot of creative uses for Tag from businesses around the world. The ones that I list in previous answers are ones that stand out to me, but we learn about new ways to use Tag every day. It is a great product to work on in that respect – our customers are always breathing new life into it. You can also check out our Twitter and Facebook communities for new executions.
14. Are there any limitations to Microsoft Tag?
No. There are design guidelines to help Tag work properly across multiple mobile platforms. These guidelines include the size of the Tag and integrity of the image.
15. I know that protecting customer privacy is critical for Microsoft. What information is sent to Microsoft or to third-parties when a mobile-phone user interacts with a tag?
The Microsoft Tag system does not transmit personal data. When a customer scans a Tag, they have the option (on some phones) of allowing the location where the Tag was scanned to be sent to Microsoft and the Tag publisher so that the information presented can be personalized based on your location. No location information is sent at any other time.
16. Any chance of working closely with OEMs to have Microsoft Tag installed by default on mobile phones? Any chance of it being integrated by default in WM7?
Microsoft Tag is committed to a multi-platform mobile strategy by supporting Windows Mobile, J2ME, iPhone, Blackberry, Symbian S60 phones.
17. What efforts are being made to evangelize Microsoft Tag?
We have a team that works with businesses and organizations large and small to help them better reach and serve their customers in creative ways with Microsoft Tag. We’ve also worked to build a variety of different channels so our Tag customers can share their creative uses of the technology – join the conversation on Facebook, Twitter, on our blog or via our website: www.microsoft.com/tag.
18. Where do you see Microsoft Tag go in the future? What are your plans for 2010 and beyond?
The possibilities are endless. For 2010, we are focused on helping our customers maximize their use of tag to help them build their businesses. We’re also constantly evaluating new ways we can bridge the divide between the physical and digital worlds.
http://news.softpedia.com/news/Microsoft-Tag-the-Future-of-Mobile-Tagging-131646.shtml
WIPO update - Messaging Interchange System
http://www.wipo.int/pctdb/en/wo.jsp?WO=WO%2F2009%2F114710&IA=US2009036984&DISPLAY=DOCS
Sorry JP, you must have posted that at the same time I was compiling my message. Nice job again and thanks for your efforts.
Nice dialogue JP!
Cameron,
I would be very curious to know what your perception is with regard to market acceptance of 1d over 2d barcodes and the direction that GS-1 is pursuing going forward. I've noticed that ShopSavvy is already in alignment with early adoption of GS-1 extended packaging protocol's. Will this become the norm and how will GS-1 extended packaging initiatives blend with say CTIA, GSMA, OMA, etc. barcode standard developments?
Best Wishes, JP
Reply
Cameron Green
Senior Manager, Global Solutions at GS1
John:
We are aligned (or at least in discussion) with CTIA, GSMA, OMA, ISO, and MMA. Infact we collaborated in a meeting in early 2009 with the Brands and Retailers who are driving our initiative. Most of these organisations recognize both 1D and 2D, sometimes for different applications (1D for information specific to certain products, 2D on a poster for an advertisment about a brands line of products). The only general consensus at this point is that a system where brands have better control of the content (or at least can show consumers what content is coming from them) is optimal and that an indirect resolution architecture is the best way to acheive this (as opposed to directly encoding URLs in 2D codes).
Posted 1 day ago (Jan 7, 2010)
http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&gid=1814763&discussionID=11859309&goback=%2Envr_1814763_1%2Eana_1814763_1262970972598_3_1%2Eanh_1814763
Interesting trial, detail starts on page 12 and demonstrates the viral potential of codes.
http://www.agencymagma.com/casestudies/AgencyMagma_QRCaseStudy_P1dec09.pdf
If you hold the .01 fixed you can always get shares for a penny, not necessarily the case with the .02's but if you can get them for a penny with the .02's why not hold the .01's?
Go ahead and study the financials this weekend lol, I've got other plans!
In regards to the 2008 10K language you posted, YA is the holder so still no redemption rights to NEOM as far as I can tell.
Bid (USD)
0.0099
Ask (USD)
0.01
Last Traded
3:59:08 PM EST
Open 0.0109
Prev Close 0.0105
http://ih.advfn.com/p.php?pid=squote&symbol=NEOM
I do not really believe that it means anything fwiw but I have been wrong before
Closing bid is .0099, I hope the courier is enroute to YA headquarters.
New York Times coverage of the space, rising tide!!
Mobile Phones Become Essential Tool for Holiday Shopping
Published: December 17, 2009
The mobile phone is quickly becoming Santa’s biggest helper.
Powerful software applications for devices like the Apple iPhone are making it easy for bargain-hunting consumers to see if another retailer is offering a better deal on a big-screen HDTV or pair of shoes and to use it to haggle at the cash register.
Online retailers are revamping the mobile versions of their sites so consumers can make purchases without tedious typing. And offline retailers, battling for every last dollar, are sending cellphone users electronic coupons to lure them away from competitors.
One in five shoppers said they intended to use their cellphones to shop this holiday season, according to an annual survey by Deloitte, the accounting and consulting firm. Of those, 45 percent said they would use their phone to research prices, 32 percent said they would use it to find coupons or read reviews and 25 percent said they would make purchases from their phones.
“We are at the cusp of this technology really driving a lot of activity during the shopping season,” said Stacy Janiak, United States retail practice leader at Deloitte. “It is both an opportunity and a challenge for a retailer, because you can have a consumer who can cross-shop your store with other bricks-and-mortar stores or online, all from the convenience of your aisle.”
Heather Reed, a mother in Cypress, Tex., is one of those mobile power-shoppers. She uses several apps on her Samsung Moment phone to whittle down her spending. She was recently considering a $29.99 Hot Wheels video game for her son at Wal-Mart. With a quick scan of the bar code, an application called ShopSavvy found it at Target, just across the freeway, for $19.99. Another app from MyCoupons.com provided a Target coupon that sliced off $10 more.
“It went from $29.99 to $9.99, all in five minutes, no searching the Internet or spending hours trying to find a deal or a coupon,” she said. “It’s all right there in your hand.”
Of course, mobile shopping technology is still somewhat clunky, between erratic Internet connections, outdated pricing data and balky product scanners.
But smarter phones and a heightened bargain-consciousness among consumers are spurring a level of innovation in e-commerce last seen during the height of the dot-com boom a decade ago.
In addition to ShopSavvy, mobile apps from RedLaser, TheFind, ShopStyle and PriceGrabber.com allow customers to compare prices across a range of retailers. Retrevo, an electronics review site, has a service called RetrevoQ that lets users send a text or Twitter message with the name of the product they are considering and get an immediate response with a recommendation of whether to buy it and a range of online prices.
While searching for prices is easy, buying from the screen of a cellphone is more difficult. It generally involves clicking to the retailer’s Web site, which is often not customized for a mobile phone’s tiny screen, and then entering shipping and billing information using the tiny keyboard.
To fix that, some retailers are building sites and applications specifically for cellphones. The iPhone app for the Tommy Hilfiger online store, for instance, shows select products based on what shoppers are looking for so they do not have to scroll through pages of clothes. Those who are registered on the Web site need only enter their e-mail address and password to check out.
“Retailers need to realize that if you give people a way to make it easy, people will shop on their phones,” said Kelly O’Neill, product marketing director for ATG, which provides e-commerce technology to retailers and built Tommy Hilfiger’s app.
EBay’s iPhone app sends people notifications if they are outbid in an auction and lets people check out with just a few clicks if they have a PayPal account. Mobile shoppers will spend $500 million on eBay this year, the company said.
By improving ease of use, savvy online retailers are snatching sales from bricks-and-mortar ones. Matthew Tractenberg, for example, was recently shopping in a Silicon Valley bookstore, where he picked out five books for a total of $80. Before taking them to the counter, he typed the titles into the Amazon app on his BlackBerry Curve. Amazon had the books for $50 and would not charge sales tax or shipping. He placed the order on the spot and left his small pile of books in the store.
“It’s almost easier than doing it on a computer,” Mr. Tractenberg said.
Offline retailers are feeling the pain. Armed with competitive price information, shoppers are haggling as never before.
Although most stores refuse to match prices, especially from Web retailers, it is difficult to simply allow a customer brandishing a lower price to walk out the door.
Best Buy, for example, officially says it will not match prices of online electronics retailers and will match offline prices only if the customer brings in an ad or receipt. But several ShopSavvy users report having luck getting individual stores to match prices they find using the app.
Pacific Sunwear, a clothing and accessories retailer, said it would match lower prices found in stores or online. According to Chad Petrillo, a clerk at the chain’s San Francisco store, more people have been showing him competing prices on their phones, most often for shoes. The store will honor them after calling the other store to verify the price, he said.
For most shoppers, price is only one factor, to be weighed against the time it takes to drive to another store or wait for a Web site to ship an item. That could be a boon for offline stores, according to Ron Levi, vice president of products at TheFind, a shopping comparison Web site. “Your proximity to that retailer gives them an advantage,” he said. “It’s theirs to lose.”
Michael Robison, a Coast Guard petty officer from Guernewood Park, Calif., routinely uses ShopSavvy to check prices, but that doesn’t mean he always goes with the lowest one. He just bought a Victorinox laptop case for $45 at Macy’s, even though it was $30 at eBags. For that amount of money, “I would much rather walk out with it than wait,” he said.
Another problem with the mobile apps is accuracy. When Mr. Robison scanned a Nintendo hand-held gaming device at Radio Shack recently, ShopSavvy told him he could get it for $110 online instead of paying $170 at the store. When he got home, he discovered that online bargain was for a used machine.
Aware of the power of mobile phones, some offline retailers are using the technology to fight back.
If someone standing in one store scans a product with ShopSavvy, for example, a retailer down the street could deliver the shopper a coupon for the same item. A major retailer is already doing that in a few test cities, including Seattle, said Alexander Muse, co-founder of Big in Japan, the start-up that created ShopSavvy.
Other applications, including Yowza, use the GPS location information in cellphones to send shoppers coupons for stores within walking distance of where they’re standing.
“This empowers consumers to make a smart decision,” Mr. Muse said. “Already, retailers are starting to figure out, ‘I need to be in this game.’ ”
A version of this article appeared in print on December 18, 2009, on page B1 of the New York edition.
http://www.nytimes.com/2009/12/18/technology/18mobile.html?_r=1
I would have a couple of thoughts in response and they are JMHO.
There is no doubt who is in control of the PPS.
I suspect that YA continuously holds somewhere near the 4.99% limit of converted shares so inside info is not necessarily required. They can simply hold until news creates volume and dump at will. As their supply of common dries up they can simply reload and be ready for the next spike.
I do not believe that the Series C are redeemable by the Co. and before someone jumps on my case here, I would simply ask that you show me some language that says otherwise. There is plentiful language that allows YA redemption rights under certain scenarios but I have found nothing that gives NEOM the right to redeem these instruments, and I have looked extensively.
At last report there were a little over 9000 Series C left with fixed conversion price at .02. If one was to attempt to determine how many common that will equate to, it would be 450 million at .02 and 900 million at par.
There is 25million in principal outstanding on the debentures plus interest so my estimate on balance due would be somewhere around 30 million and can be calculated precisely with a little effort and an Excel spreadsheet. YA does not need to "block redemption" because they have the option to fully convert to common at predetermined conversion prices regardless of the current PPS. However NEOM cannot prepay these instruments unless the closing bid is below the fixed conversion price (my current understanding). I do not see any incentive really for the Co. to prepay these debentures before their maturity dates as that option would require a 10% premium or somewhere near 3 million. If I were considering that option and I had the money, I would simply wait until maturity (7 months) and save the premium. If these debts were fully converted into common at par you can count on another 3 billion shares. If the PPS floats up to the .02 range that number could be halved and it would be possible to contain the fully diluted count within the current AS.
YA gets a twenty day notice of any buy out as specified in the financials.
Having said the above, I remain optimistic that these hurdles can and will be overcome by solid management and momentum in this space. I continue to accumulate this stock based on the merits and momentum of the technology but there is certainly a very high risk/reward profile here. Not for the weak hearted. GLTA
More importantly than who knows what, is how did the debenture fixed conversion prices get lowered to .01 in May of 2008 and was only disclosed to shareholders in the 10Q for the first quarter of 09. Why not the 2nd quarter, 3rd quarter, 4th quarter of 08? Now apparently, NEOM cannot prepay them unless the PPS closing bid falls below a penny!! Just can't make this stuff up!!
The debentures issued prior to May 29, 2008 were originally issued with higher fixed exercise prices but because those debentures include full-ratchet anti-dilution provisions, their fixed conversion price was reduced to $0.01 as of May 29, 2008.
Page 8
http://www.sec.gov/Archives/edgar/data/1022701/000114420409027409/v149700_10-q.htm
Edit: interesting and I am just now noticing that the 10K did not disclose this statement and in fact showed the fixed conversion prices ranging from .01 to .15
NEOM needs a closing bid price below the fixed conversion price on the date of 'holders receipt of a redemption notice' in order to prepay the debentures. Most of the debentures carry a fixed conversion price of .01. Simply speculating here, but IF NEOM has obtained the funds somehow to effect such a transaction, I would expect to see PPS below .01 for the period of time needed to deliver such notice, particularly if YA wanted it to go down that way.
a) Company’s Cash Redemption. The Company at its option shall have the right to redeem (“Optional Redemption”) a portion or all amounts outstanding under this Debenture prior to the Maturity Date provided that as of the date of the Holder’s receipt of a Redemption Notice (as defined herein) (i) the Closing Bid Price is less than the Fixed Conversion Price.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=43184906