NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

JP: re: "the consultant", etc

This is all interesting stuff and it will be very interesting to follow as it all plays out. I doubt TS will be putting out a buy rec on NEOM this week, so for the short term none of this is going to have any positive effect on the PPS, IMHO.

I noted yesterday or Saturday that I thought NEOM's PR was a little weak on rebutting anything Tobin said.

It's too bad they couldn't have been more specific on just what was wrong with what he said. Perhaps Neomedia will be more specific this week, perhaps with announcements which somehow relate to many concerns, including the questions posed by Joe D. to them via email.

TS's slams:

1) People in the mobile search and advertising space are simply getting around the NEOM patents. They are using closed-system searches to end-run NEOM's patents and that's a development that is clearly not good for the company.

(Neomedia did not respond to this in any meaningful way, other than to say they'd been successful in court in the past. The problem is, those successes haven't put any serious money on NEOM's bottom line that I can see.)

2) The big players in the mobile business are just not responding to the NEOM "patent litigation" threat and are side-stepping NEOM in their route to mobile search and advertising gold. For example, Australian competitor Shock Code has its technology on 40 million Sprint bottles in a promotion that should have been a NeoMedia promotion. The fact that it's not speaks volumes about the lack of execution on NEOM's part.

(Okay, lots of typos and inaccuracies, but again no substantive response by Neomedia, other than to say TS had them pegged as a mobile search company, when in fact TS clearly stated "and advertising" in each of his points)

3) The massive number of shares outstanding (and we've articulated this issue for a long time) is just too big a hurdle for the business to overcome. Additionally, it appears that NEOM is not getting any real value for the sale of its auto paint business, so all we can see is more and more serial dilution ahead.

(Well, we've certainly been concerned about this for a while now, the dilution. Not addressed in Neomedia's reply PR yesterday.)

So like I said, all of this is very interesting but IMO that's all, it isn't going to put money in our pockets. It's still time for Neomedia to show us the money, or at least to clearly show us that some steps have been taken down the path to the money, with specifics. If they can't do it this week, fine, but until it's done, "all of this" is just a diversion/distraction.


JMHO

jonesie