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Yes, as I wrote, the shareholder notice was correct, but (intentionally) incomplete. Even if the statement hadn't been motivated by shareholder inquiries it would have been very misleading. As a direct response to questions about funding it borderlines on a lie (imo).
I don't care about the short term loans. They were obviously well placed and successfully paid back on time. Good. What I don't like is that Neomedia seems to be having financial problems as well as cultural ones. Another thing is that YA themselves have no reason to want any more Convertible Debentures because they have a hard time converting/recovering the debt as it is. Thanks to the SEC we know they need to get out of this debacle asap.
So why the non-Convertible Debenture loans? Because Neomedia is doing better or because YA closed the door on the rest of their shiny tools? Is Neomedia being funded by bridge loans right now? What else is left unsaid?
There is only one way to make up for this lack of transparency and demand of blind faith: MAJOR success. Comin' 2013 I hope...
No, they did borrow. Check out the 10Q. And not only did Neomedia keep quiet about the (bridge-)loans (there were two as far as I remember), they also issued the following shareholder notice after borrowing again:
We have been asked a lot recently about funding. The Company last received Convertible Debenture based financing from Yorkville Advisors in late July 2012. As we have previously stated, the Company’s objective is to move towards cash self-sufficiency as rapidly as possible through cost reduction and enhanced IP licensing revenue. It remains the objective of the Company to reach this milestone.
While this is true of course, Neomedia acknowledges the notice is a response to questions about funding, while not mentioning the recent non-Convertible Debenture loans. To me this is the epitome of deception. The gloves are apparently off.
Not trying to play smart ass here, but Neomedia has borrowed from YA since July. I really hope we will be self-sufficient in January.
0.0024 - nice. And another 8 months until debt maturity. I hope they keep feeding the rabbit in the hat 'cause out here people are getting quite hungry.
Take a look at this post, explains it pretty well:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=82388949
One thing you have to know is that YA can convert the money it lent to Neomedia into shares, thereby being able to add shares to the market as they recover their loans. That's why it's called dilution. How it works is in the post above. Poptech also once posted that convertibles are actually excellent financial instruments. Still, so far they have sucked up a lot of shareholder capital.
One thing to note is that this company is only still alive because folks like you and me believe in its potential. No potential = no hope = no buyers of shares = no conversion = no new loans = shutdown of company = no 400K annual CEO salary.
If you reverse the equation you might come up with the strange idea that all we have here is the classic story of the thief disguised as the cop trying to catch himself. Be careful.
I maintain we are largely on auto-pilot, companies will find us, not the other way round.
Spot on.
In Japan they resign the old school way, Seppuku. It's definitely about time some western CEOs got introduced to that wonderful custom. I wish Laura would at least comment on the firesale.
He doesn't have to file anything if he got out?
LOL. Keep it comin', Pop, keep the finger on the trigger!
YA will get hard becaue FBI and stock controller are waiting
You got it. But don't underestimate private equity vultures. When the going gets tough they get off. They come up with sh** you wouldn't believe in order to save their butts. Today's action was another piece of this puzzle that I don't understand. Can't wait for what's next. In 2013 it will probably become a total nutcase.
Well, it wasn't YA or Neomedia's management.
Full throttle, blast doors shut. YA drilling down to the core now.
I wish you were right. Neomedia would need a 50 million dollar cash influx (preferably coming from actual business operations) to make it go up big in only one month. And as I know Laura Mariott, she won't say anything publicly until the next 10Q. Well... maybe a nice notice about how Neomedia hasn't received any Convertible Debenture based financing since late July 2012.
Not trying to bash here... just disillusion catching up. It makes me sick to think of the opportunity costs of the money I lent to Neomedia.
Lie: an intentionally deceptive message in the form of a statement. - Sissela Bok
The true sin of lying is contained in the desire to deceive. - St. Augustine
A lie with a purpose is one of the worst kind, and the most profitable. - Finley Peter Dunne
Lying rides upon debt's back. - Benjamin Franklin
Lying and stealing are next door neighbors. - Arabian Proverb
I stuck with this stock through the R/S. You don't think you can lose more than 100% on an investment? Think again and throw a couple more zeroes into the current share price.
Imagine you're doing deals with Microsoft and Kraft, but don't make enough to pay your bills. Nobody really knows what's the problem here, but there must be some.
Let's not even start talking about the YA situation.
lol
The current 'team' has only two quarters left anyway. Let's see what they come up with.
Just went back and read the first 10 messages on this board. Depressing as ****!
True, when he bought in he held about 11,5 %. Thought he bought twice that. I only had the 13D class percentage in my head. Still means he has to at least double up if he wants back in.
What gets my hopes up is that Dr. Soon-Shiong initially bought 25% ( which are being diluted <5% as we speak). He knows that buying shares now is useless unless he buys them all. No matter where we stand once we made it, Soon-Shiong will have to put in a serious order if he still wants a quarter of the pie.
Enjoying your facts, Gator. Wish I could convert my shares into actual toilet paper just like YA is doing it. That's what was so good about the physical days. YA would have had to buy part of the Brazilian rainforest first in oder to sell what they've been selling.
What can anyone do against YA opening every single floodgate now? They want (must) the hell out. Unless a Billionaire decides to buy up hundreds of millions of shares again pressure will keep building. It seems we just need to stick it out. Here's an allegory you might enjoy: http://en.wikipedia.org/wiki/Submarine_depth_ratings
What I don't understand is why Laura Mariott isn't more proactive about communicating Neomedia's debt cliff in August '13. Again and again she makes it clear that YA's conversion helps lowering the debt load aka 'please buy all those shares, everybody, and keep buying them' - a bold move without giving any kind of assurance, alternative, etc as to what's to happen once we reach the maturity date and YA launches the only capsule.
Are we supposed to watch them smile and wave at us as they shoot towards the surface? Is the captain drinking already (as you suggest) or why is she staying in the cabin? What are shareholders to do right now except stare at the pressure meter in collective silence with sweat on their brows?
I'm optimistic we'll make it. Barely, though. Kinda like this:
http://misputosgifs.tumblr.com/post/14462801782/mission-impossible-tunel-chase-scene
I sympathize. Yet I'm glad there are places where one can dissect quarterly reports, etc. Especially today. I'm not a trader, flipper, shorter, you-name-it. I believe in the creation, support and profit of superior products. Relentless analysis a la Poptech might annoy some people, but it helps not getting blindsided too much. I still get angry whenever I think about the fact that Laura Mariott and Neomedia didn't feel it was necessary to state a bridge loan by YA last quarter. It's one thing to be secretive about strategy. Another is not being completely honest with investors in a situation like this.
We live in a climate of lies and deception (check out the FT and what they just dug up about Deutsche Bank) and Neomedia has been playing all along. The SEC seems to be discovering 'glitches' pretty much everywhere these days (while being ridiculously understaffed). We need serious changes in the financial world or smart, clean, hard working business men won't consider a career or won't get funded.
It's companies like Neomedia that make me want to invest in nothing but gold coins until we're all over the cliff and can build a system again that we trust in. The strength of Neomedia's patent portfolio kept it alive. I have respect for the inventors, and none for management. Business seems to be picking up now, but I wonder if that was sound decision making or just time catching up with the intellectual property.
Good luck to us all.
Rant over.
There are no manipulators. Just seller(s). Volume is nice though.
The only way to gain investor confidence is starting - as Poptech said - to break-even after 17 years (!!). Beyond the future is bright. I don't think anyone doubts that.
If Neomedia shouldn't make it after all it will at least make one hell of a case study about the darkest side of enterprise funding. So far some people have made a lot of money off an idea of a product. It's the perfect pitch lost in development hell. Hollywood knows all about that.
I don't hink they are manipulating and I don't think they want Neomedia to fail. They want to make a decent ROI and get out of this whole mess that they helped create.
I have no opinion on the SEC investigation but I guess YA hopes to never hear the name Neomedia again after 2013.
Are you telling me YA isn't selling? Come on. Of course they are. The fact that they can't sell 3 billion at current volume doesn't mean they would do it if, say, Apple, Amazon, and Facebook licensed on a single day.
YA will sell as much as they can to get rid of the shares. Unless invesors soak up more than YA spills the floor's going to be wet. Simple physics.
Thx, I saw the link in your first post. I find it interesting that this hits the wire the day we hear about the settlement. Poptech made a definite statement and apparently knows more, but can't or doesn't want to comment beyond that.
Dream on.
Neomedia is a prime example of lack of trust though. Imagine this news flow years ago.
Sorry, mixed up your name. Personalizit posted it. How come you know Spyder Link didn't?
In all likelihood there won't be any future borrowing from YA. At the same time more and more major customers are aquired. All this spiral staircase leads to is a basement full of gold.
This company has a hideous past. I'm pretty sure we'll shake it off in 2013 for good.
If Poptech is right and Spyder Link is borrowing to reimburse Neomedia as well as keep paying them then we should be self-sufficient.
YA got up a little later than usual. LOL. Disgusting.
Sure. What company are you running exactly? Microsoft, Kraft or any of Dr. Soon-Shiong's enterprises are out, but still... I'm having a little trouble guessing. Would appreciate it if you gave us a name.
Yeah, that's what I thought too. Double bonus for the company we all love so much :)
Is Klawonn suing Neomedia also? I thought he was tackling YA only.
Reveals too much about business strategy. QR might get a lot bigger than we all think. MSFT already missed out on the 'Internet'. Them signing on so early looks really good.
It's messy as hell, but chances for some serious cash influx to come pretty soon are looking better and better. Realize that the only thinkg holding us down is YA. Nothing else. Competitors settling lawsuits AND licensing (shortly after MSFT got on board btw). Sounds like domination of the marketplace to me.
Excuse me if I'm wrong, but I consider Spyder Link not only giving in but licensing big news. Does Neomedia have any other lawsuits pending?
This year was (and still is) machinegun fire of positive events.