NeoMedia Technologies, Inc (NEOM)

[brewskih]

So many myths, theories, uncertainties etc raised last night, that I will try to address them all in one post.

Drmyke.....again you asked the question of shareholder power. As I explained yesterday, the shareholders of this stock have more power then the majority of shareholders of non BB stocks. If you look up any NASD or NYSE stock you will find that INSTITUTIONS and INSIDERS hold the majority of shares of these companies, thus they control the voting. This is typically the case in non BB stocks. These institutions typically consist of MUTUAL FUND MANAGERS, large capital investment firms, brokerage houses etc. They do not trade the stocks they hold daily, and thus the pps is stable. NEOM right now has what is listed as ZERO institutional ownership. Yes there are some shares owned by institutions, but its such a small percent of the outstanding shares that its listed as ZERO, because its well under 1 percent. Look up a Google or Microsoft etc. and you will see what I mean. Google is 79 percent owned by institutions, therefore the retail investor has no say in voting. There is much discussion going on right now, matter of fact, as to why these big institutions aren't holding boards accountable for high officers pay etc, since they control the voting in these companies.

Then there are the many posts last night about MM manipulation, short selling and naked short selling. MM's are not going to tie their funds up in a penny stock, when they make their money moving shares daily. The more shares they can move of all stocks the better for them. So they aren't gonna sit on a stock like Neom, and hold onto millions of shares just so the can drive the pps down, for someone elses benefit. They make money whether the stock goes up or down. Then the shorting and naked shorting. On the shorting issue, there aren't enough shares shorted to really have any impact on the pps. And considering the pps has been in decline for nearly a year, and the short sales during that time have not drastically increased we can put to bed that theory. Some might claim the short number is low because they are covering at lower prices. If that were true, and they were shorting and that drove the pps down, each time they started covering the pps would have went up to the same degree basically. Then comes the naked shorting. Under Reg SHO any company thats being naked shorted without the shares to cover has a mandatory time line to find those shares. When they find them and start covering the naked short it would reverse the direction of the pps. NASDAQ TRADER publishes a daily list of threshhold stocks who are not in compliance with the SHO rules.Of course some will say there are ways around these rules. And they are right, anything involving real people, there will be some crooks out there that dont consider the risks. And since we have all seen actual cases this gives the posters claims some credibility. But I dont think that a major MM will risk their business license to focus on 1 penny stock, day in and day out for almost a year just to drive the pps down for some investor, that wants that companies patents etc. NEOM is not on that list. Some have compared NEOM to MOBL. MOBL is on that list and is also marked by a YES in the column that represents they have to now cover those shares. Scroll down the page on this link and you will see last nights list.......

http://www.nasdaqtrader.com/aspx/regsho.aspx

Then theres the theory of who shot JR on the grassy knolls.....wait thats Dallas and JFK combined.....LOL. That and the other theory suggests that Cornell or some outside company wants NEOMs patents so bad they will do all kinds of things to get them. Lets look at 1 little fact that hasn't been brought up here, and I haven't mentioned it cause it scares the heck out of even me. In NEOM's filing they state they are in default with Cornell at this time, and therefore Cornell can exercise warrants for 175 million shares of NEOM common stock, on a cashless base. Thats right, Cornell can at any time demand NEOM issue them the 175 million shares, for not one penny, dump them on the market and pocket the profit. If they want the patents so bad, or they are working with someone else that wants them so bad, why haven't they took advantage of this yet. They have had 2 months to do so now, according to the filing, but they haven't. Also NEOM has defaulted on the warrants issued in reference to the preferred stock, and in this case Cornell has the right to convert warrants for 250 million shares on a cashless basis. NEOM had until November to get all these shares registered and did not and therefore defaulted.

Read the footnote 1 on bottom of page 17 and continued on page 18.

http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?FilingID=4909545&Type=HTML