Proof That Persistence (& Experience) Pays Off:
APDN, MSFT, & NEOM Examined
By James E. Brumley
Aug 22, 2012 8:32:18 AM PDT

http://www.smallcapnetwork.com/Proof-That-Persistence-Experience-Pays-Off-APDN-MSFT-NEOM-Examined/s/via/10/article/view/p/mid/3/id/183/

JAMES E. BRUMLEY

The unfortunate fact of the matter is, most bulletin board-listed stocks never graduate from the bulletin board. Though the estimates vary widely, on average, experts say more than half of all startups fail; a bunch of experts say the failure rate is 90%. Every once in a while, however, you get a company like Applied DNA Sciences Inc. (OTC:APDN) or NeoMedia Technologies, Inc. (PINK:NEOM), that survives the 'trial by fire' that destroys most other comparably-sized businesses, and makes it a stage in the company's development that isn't a perpetually-uphill battle. Of course, having a fiend like Microsoft Corporation (NASDAQ:MSFT) or the Department of Defense throw you a bone doesn't hurt either.

With just a quick glance, casual observers may deem NEOM and APDN just lucky... in the right place at the right time. Applied DNA Sciences, for instance, is the beneficiary of a recent decision from the Department of Defense to require all of its technology suppliers/contractors to use an ant-counterfeit control process that's - ta-da - only made by Applied DNA Sciences. Since it's a patented technology, the company is in the proverbial cat-bird's seat. As for NeoMedia Technologies, Microsoft Corporation recently agreed to be a licensee of its barcode-reading technology patents. One can only presume that this technology is going to be one of the many features available on any upcoming Windows 8 (for mobile) devices. It may even be a tacit clue that Microsoft is getting directly into the smartphone business, which wouldn't be a stretch considering it's already waded into the tablet business, via its 'Surface' device.

Take a closer look at these two small cap companies though. It may look like luck on the surface, but ask the people working for - and leading - NeoMedia Technologies or Applied DNA Sciences. It's not a matter of luck. It's a matter of taking a good idea, and working it, and working it, and working it, and then selling it, and then working it, and then selling it, and then selling it, and then working it..... you get the idea. APDN and NEOM win coveted, lottery-sized business largely because they managed to stick around under circumstances where other outfits would have folded. Welcome to the modern world of startups.

For Applied DNA Sciences, that good idea was a botanical-based DNA marker. It's proprietary and patented, but more important, practical. A tiny bit of that plant DNA material is dabbed/brushed/sprayed into a tag, label, or package, and using the company's specialized scanning equipment, it can determine the presence - or lack of presence - of said DNA. It has value to high-end brand names who want to protect their reputation from subpar items produced by counterfeiters, who have gotten very good at knocking-off name brand items... right down to a perfect reproduction of the label. The label or tag may look like the real deal, but if the APDN scanners don't find that particular botanical DNA on it (which is invisible to the naked eye), a fake good can be identified.

NeoMedia Technologies' offer is clearer. It can turn a smartphone's camera into a barcode reader, which can then direct a smartphone to display a particular webpage. It's not a new technology, and it's not even the only player in that game. Apple's iPhones and several Samsung phones and tablets already have a barcode reader that does the same. Microsoft clearly likes Neomedia's though, and the reader technology may well become one of the centerpieces of what Microsoft hope will become its own mobile ecosystem.

All that being said, the key that investors must soak in - the part of the story that's easy to overlook - is that both of these small cap companies have been working on these 'big deals' for years.

Applied DNA Sciences, for instance, began rolling its DNA-driven ball way back in 2007, starting with no sales at the time, but armed great idea about how to protect companies from piracy and counterfeiting. In fact, APDN was one of 2007's top Featured Stocks of the Small Cap Network; here's our initial recommendation. Now, a 'mere five years later', the Department of Defense saw the value.

NeoMedia Technologies has been around since 2006, when the founder first installed the tool on a smartphone and successfully pulled up a web page based on the barcode in question. As cool - and expected - as the idea seems now, the crowd didn't come running. It's taken several years of tepid licensing and service revenue ($7 million, in total) and a long patent fight to keep NEOM in a position to where it could be around to become a Microsoft partner today. The Microsoft licensing deal, however, could be worth tens of millions if the normal licensing fees and royalties of between 0.5% and 5% apply to this deal.

The point is, none of this recent success from either company actually happened recently. It's taken years to get here, with a lot of money, and a lot of sweat-equity.

More important for investors is the lesson behind these recent deals.

At the heart of both companies is a very practical, marketable idea. And, behind both companies are people that understand success rarely 'just happens'. It's built. That's why who's developing the business model is just as important as the idea itself.

One has to wonder if the investment potential of Facebook [Facebook is a great idea, by the way] would be much more compelling if a seasoned veteran who understood that growth can never be taken for granted was at the helm. While Mark Zuckerberg isn't a dumb guy, at 28 years old, he was only 16 when the dot-com bubble burst, and all he's largely seen from the world of technology (excluding the real-estate-implosion-driven bust of 2008) was apparently-easy success. That's not the way it really is all the time though, when you dig deeper into what makes companies tick. It's interesting that both NeoMedia and Applied DNA were helmed by seasoned veterans (Jim Hayward at APDN, and Iain McCready-then-Laura Marriott at NEOM) that most sub-30-something's would consider past their prime. They're not past their prime. They just know how to build something for the long haul that would eventually be self-sustaining.

Just some food for thought the next time you get interested in a tech company led by someone under the age of 30 that doesn't actually have a business/revenue model.

Why the Massive spread on the bid/ask?

Congrats EMWW holders! ,...more to come

NEOM Chart-reversal

@ .0131 ask

RSI downtrend bottomed and Rising
MACD crossover in progress
MACD Histogram Increasing to 0
Price crossed above ma 10
60 min chart with ma 10 and ma 100 gives close up view

Good read - all too common, but not for long...

Cannabis 100 Year "Smear Campaign" cannot be sustained here in the information age. People are learning the truth by the thousands and once it is excepted as medicine by society, next will come many revolutions in other industries - textiles, foods, oils, Hemp Brick construction = AMAZING! btw), and the list goes on and on. The Cannabis plant can provide almost everything humans need for basic survival and the rich who would be put out of business if.. will fight it to the death. They need to continue using fossil fuels, chemicals and toxins in things like medicines and paper etc... but the reality is they are trying to create patent-able products that simply do what Cannabis does naturally, safely and with no dangerous side affects (and is easily available to anyone who can shove a seed in the ground).

Saw a medical conference a while back where a scientist stood up and stated that they had been trying to kill test animals with Cannabis and they concluded that the only way was to drop a brick of cannabis on the animals head... It was funny but he was very serious about the point he was making.

I have done well on CBIS - Out right now during the churning but looking for an extended uptrend (CBIS will help heal our nation imo)CBIS current range is MA 50 Support around .115 now to high at .16 area. I will buy on breakout.

BTW, Looks like a possible "Pennent" Pattern forming. Higher lows/similar highs. Lows = MA 50

Stopped in to wish all you CBISers a happy 4/20 Day !!!

ECDC - Got some at 004

Buy order at ask filled at bid(red) - disguised as sell order? filled for me just now. Why would they paint my buy as a sell and give cheaper price ...anyone?

lol, is there such a thing? Wanna buy, get in at the dips imo...

These dips look pretty cheap .021 now

NEOM - Buying some at the dips - .021 now

USNL - Big hammer and indicators reversing on 60 min chart....0039 now

Big hammer and indicators reversing on 60 min chart....0039 now

Watch List
NEOM - MA (200) bounce from .02-.024 Range

SNDY - MA (50) bounce from low 009s

CBIS - Churning sideways, Ceiling at .173, support @ ma (20) .12

MJNA - MA (50) bounce from .046

ECDC - MA (50) bounce from .037

KMAG - MA (200) breakout from .01

USNL - MA (10) bounce from .003

ATRN - MA (50) Cross above from .10

INTK

CCTC

DKGR

Thanks:) and for posting the chart also.

CCTR @ 0003/0004 Any opinions on this one?

Its ready again ask slappers!

Target Price of $1.00 can be viewed by anyone - just pull up a weekly chart at 2 years and look between 8/23/10 and 10/25/10 at the lows. (very solid support/resistance) Maybe someone can post chart?
For you Fundamental guys, was there a change in share structure immediately following/during these dates?

Also I have the 52 week high at .0289 and next major resistance I see for short term is at .17-.21 by my best indicator.
Anyone else confirm or refute?

its ready ask slappers!

Gap Up Monday ;)

got an SNDY!

Blue sky on daily but many say .02 which may be right but I think next major resist is near 52 week high of around .028. next resist I see after that is up by the birds on weekly chart...
.02 at just a 25% increase from recent high would be nice to see so retraces are minimal... but momo is high right now so prob happen quick.

Short term Target .028 on Monday?. Prob some consolidating and then next target I see is .20 (MA 20 on Monthly chart) and Then .65 (MA 100 on weekly chart) -Blue sky on Daily chart-

RSI Cross above 50 with MACD going bullish on weekly chart will come with a big run imo.
20 cents per share is entirely possible in near future...

Weekly chart So Sweet! triggered SAR / RSI approaching 50 / MACD crossover imminent....

Tight bid/ask spread now, time to hit the ask. MM that was collecting shares by driving price down with the big spread last few days seems to be gone.

Market Maker driving price down with the spread so he can buy to cover short position as cheap as possible before boom...just sayin...

Nice view :) -e

INXR / CHART


The MA 200 is the white dotted line on the Chart. Our breakout and run up was due to crossing above this resistance.

For any breakout of resistance it is common for the price to return to the broken resistance and test it as support.

I believe this is where we are at now.

The MA 200 Indicator has a very close relationship to the MACD 40,85 displayed below. IE - When/If the price begins to climb from the MA 200 support, the MACD 40,85 will be crossing the 0 line and pointing up. You can see on the chart below that it is pressed against the 0 line with the rising pressure.

Another way to think of this is "Filling the Gap" that was created on our breakout around the 9th of July.

We were expecting a close of 0006 to close the Gap but the rule states that the Gap must be filled by the body of a candle which appears to have happened on Friday.

From here we are watching the short term indicators for the pps to cross above the MA 5 - and - the MACD 2,4 to cross above 0. (A decending trend line across the highs can help spot the next upmove)

It may trade sideways for a few sessions but the close must hold above the MA 50/200 support area of .0006 until the buyers take over.

All JIMO and FWIW

I posted a reply to your PM on INXR in my room.... -e

INXR / CHART

You are correct on the MA 50 bounce, but what is more important imo is the MA 200 sitting near the same spot...

The breakout of the MA 200 was very significant imo and it is typical for the pps to return and test it as support, post breakout of Resistance (MA 200).

-MA 50 = .00057
-MA 200 = .00064
Gaps filled at a close of .0006

Anyone tell me what is pushing this and where the volume is coming from?

INXR Chart (up almost 300% Today)

INXR / Chart

.0004

Info Box updated - E

NWBT / Chart (Added to info box - Green)

.225 Now // MA 5 at .184 // MA 20 at .133

PXIT / Chart (Added to Info Box - Green)

0009 Now // MA 5 at .0008 // MA 20 at .0005

XKEM / Done - Falling below the MA 20 -e