Saturday, December 12, 2009 2:21:50 AM
Many here are in love with this stock, and therefore talk about it as if a market cap of $10BILL or a pps of $50 is a mere formality. As we all know, love makes the brian a little fuzzy!
Joe Investor will look at NEOM as at Dec 2009 and will make the following assessment:
1. Currently negligible revenues have been reported. They will ignore all recent PRs, asince no dollar figues were reported alongside these PRs. UNCERTAINTY.
2. Toxic financing current with no defintive end date. Impact on shareholder value UNCERTAIN
3. Potential 5Bill O/S. Thats 5,000,000,000 shares. Think about that in the context of the above two points. MASSIVE UNCERTAINTY.
Most institutional investers will require
1. REVENUES + PROFIT
2. Elimination of toxic financing. NEOM must be solely responsible for its own balance sheet.
3. Once the above two conditions have been met, especially annually increasing revenues, then there may be seen to be more certainty with O/S.
Most investors dont feel the need to get in on the ground floor, before a company is known. They dont look to buy at $0.01 and sell at $50.00 like we all do. On the contrary, they are happy to see a history of profitabliity first, then invest. Which may mean they get in when we are already 20c or 50c pps.
Early days.
Lets see YA eliminated and revenues reported....and then we can make demands on the PPS.
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Mental Note to Self >>> heed the above advice.
Beacs xx
"You can't be a beacon if your light don't shine" - Beacon27, iHub 2007
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