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Re: ss9173 post# 73372

Saturday, 05/13/2006 1:26:39 AM

Saturday, May 13, 2006 1:26:39 AM

Post# of 326395
ss9173,

Ref the second point about the concerns.
I absolutely do not agree with the statement, "The only way to fund this is through a lot more share dilution." This is the least desired option. It should not even be thought of as an option. I sincerely hope NEOM management does not have this frame of mind. It is negative thinking. This is the "Losers" option. It is the easy way out. I do not want this and I am sure most, if not all shareholders do not want this.

What alternatives do we have? There are definitely positive options that must be addressed as "MUST DOs" for NEOM management. First, lets ask, Why did NEOM acquire these companies? What is it in these companies that NEOM sees as positive attributes? How can these attibutes fit in the greater NEOM scheme of things or plans? What synergies can be derived from the complementary IP and talents that these companies possess? How should we organise the enlarged NEOM organisation structure to optimise efficiencies, output and revenues?

What can we expect from an analysis of the answers to the above questions? To me, the following are some of the possible expectations :
1. Greater capabilities of offerings from NEOM by combining all the different and complementary "Know-hows".
2. Wider market reach and opportunities because each of the companies have strenths in their respective different market segments.
3. Economies of scale to control/reduce expenses.

These outcome of these possible expectations are :
1. INCREASING REVENUES
2. IMPROVING MARGINS
3. CONTROLLED EXPENSES
4. IMPROVING CASH FLOWS

THIS IS THE ONLY AND DESIRED WAY TO FUND NEOM's OPERATIONS.

NEOM management must take this as the only acceptable option. This is an immediate "MUST DO" action item for management. They must not dilly dally and take years to ponder and act. This is survival action! No more lame excuses that the market is not ready etc. NEOM must create the market and not wait for the market to create NEOM!

The increasing share dilution must not even be considered as an option! If NEOM management thinks increasing share dilution is an option, IMO they ought to face the firing squad!

Andrew138







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