NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

"How the RS is perceived by the market depends heavily on the circumstances in which it occurs."

Excellent post clawmann , probably the best one discussing various ramifications of a R/S.

Revenues are the key IMO , in both how a PPS fares post-R/S and even relative to getting on a larger exchange such as the NASDAQ.

I believe the Naz has requirements in that regard , perhaps with regards to Market Cap. , if not an absolute revenue-amount cut-off?

Reverse Splits must be viewed as tolerable by Yorkville as many of their clients have engaged in them. Or perhaps it's the other way around , and it's companies who find themselves needing/wanting to do R/S to undo massive dilution who also need the services of a 'Yorkville'.

At any rate it's probably easier for Yorkville to dump more dollars-worth-of shares when tanking a stock from $2.00 to $1.00 , than to dump those same dollars-worth-of shares starting at .01. From .01 it's probably a quicker ride to .001.

In my personal experience the only R/S done by a tech. company which held up for a while is INAP. (Atlanta-based, NEOM could possibly use their services at some point.) They successfully got themselves back onto the Naz from the AMEX and the stock price rose around 100% over the next 5 or 6 months. I haven't kept up with them since they peaked around $20 but I see now they are at approx. 1/2 of their pre-R/S price. And they're a very real company with very real products and revenues.

JMO

jonesie