Movieguy, though I agree that there is now financing in place to keep neomedia a going concern for at least two more years, the cornell agreement, IMO, is not a positive development. Simply put, it means neom is preparing for many more months of limitted revenues; moreover, neom is not expecting money from Virgin or any real financing from any other source (nobody will add financing to neom as long as they have a relationship with a stock-for cash outfit like cornell). Neom isn't expecting funds to buy the stock, because again, no real fund will buy into a stock that can dilute and will dilute with such ease. Bottom line is, neom needed the money, and now they have access to the money. But this money will come at the expense of current shareholders.
Of course, this could all change suddenly with some good news, but it seems unlikely that neom would enter into such an agreement if big money were on the horizon. If some sort of major partnership had come out of CTIA, or if some sort of deal with anyone of the likes of google, microsoft, etc were soon approaching, neom would not have needed to make this agreement at this time.
I'm not sure whether the pps will react to this, as the potentials for the company haven't changed; but over time, if cornell is the way neom intends to fund itself, then certainly the value of our investment will continue to decrease month by month. Not a pleasant thought.
As to the USA today article, it's clear that it was aimed at an average investor; financials are all that an average investor who doesn't have the time or wherewithal to do serious research should look at. A stock that dilutes as dramatically as neom without earnings, that loses money this fast, is not a good investment for the average investor. However, if one believes that the technology and patents will be immensely valuable, then it's a great speculative move- speculative being the operative word.
As for the last few pr's not moving the pps up, the simple truth, IMO, is that these pr's were unimportant. Anything involving neom's paint division can be written off in terms of the overal pps, because neom's paint company isn't worth even a tiny bit of the near 100 million market cap. And any pr announcing a partnership with a sales or advertising agent does not affect revenues or the value of the property. Hiring or partnering with a sales agent is important to advance the company, but not important in terms of raising the pps or the market cap. Until we have virgin news or a service provider news, we won't move.
And again, and again, and again, it all boils down to the patents. The USA piece is wrong only if the patents turn out to be as valuable as we believe. if they are, then of course a company like nokia won't develop their own software, because they won't be able to.
Sadly, at the moment, with the new cornell financing deal, i'm guessing that these patent issues won't be solved any time soon, at least not in a definitive, money generating way. But hopefully neom will prove me wrong.
best
Joe
