NeoMedia Technologies, Inc (NEOM)

[brian3528]

I think this is how it works...
In a share buy back, Neom would buy shares off the open market, and then they retire those shares resulting in a reducing of the Outstanding shares. So, to maintain our current market cap. the stock price would have to go up. So you would have exactly the same amount of shares as before the buy back but now they are worth more. Believe me, we would rather have a share buy back and not a reverse split. An RS reduces the number of shares you own by some ratio. For example if you own 10000 shares of neom at $.25 and they have a 1 for 10 RS, you would now own 1000 shares but the stock price would be $2.50 per share(your value remains the same). You can see how this hurts the shareholder's profit potential.