Replies to post #269104 on NeoMedia Technologies, Inc (NEOM)

[AlfonszyD]

Agreed that it's is YA strategy to keep NEOM alive as long as they are able to sell above their conversion price

I think the key word their is ALIVE....meaning as long as investors are willing to buy BK is off the table, at least for now...in my opinion

However, wouldn't you think this presents a great trading opportunity at these levels, to tag along with YA and the MM's.  By watching the trading on these down days it's on light volume....today for example the buys outweigh the sells 4 to 1.  Most of the buys are going off at the BID, to me this is a signal the MM's are buying the shares directly off YA because the retail appetite seems to have totally faded.  If the MM's are accumulating shares in coordination with YA selling to keep the conversion price down on light volume, usually a sign a run, manufactured or not, is in the near future.

I personally think they are waiting to the next quarter.  The lower the pps at end of June, the more valuable the debentures show for YA for investors as assets under management for quarter and mid year review.  YA can prop up their own AUM by simply driving the price down at quarters end.  The lower the pps, the higher the value of the debenture....Smoke and mirrors 

I think we will see a barrage of pr's from NEOM at the beginning of the next quarter. Seems to be the pattern...silence near the end of a quarter, a PR blitz to start the next.  Looks to me like YA likes to have it run and make their coin then, only to allow the pps to drop by the end of next....cash in the beginning, pump up their AUM end of quarter 

A trade from here to a coordinated run into the high .02s or low .03s shortly is what we will see early in Q3....nice trade from here....in my opinion

[Poptech]

Risk: Using your numbers of ((425,000+400,000) / (.009-.0065) /20), YA needs to sell 16,500,000 shares a day to breakeven.

The problem is that doesn't include conversion cost, management fees, or the cost of money. YA is borrowing the capital to relend to NeoMedia. They are currently converting shares from 2006 which means the cost of the capital has increase 50% if their investors only want a 6% return (on their low risk PIPE investment). A $425,000 loan needs to earn $600,000 to break even.

So, to reach the lofty goal of breaking even on their money, and assuming they pay a 3% conversion cost, YA actually needs to sell 21.1 MILLION SHARES A DAY.

To breakeven. Which is, of course, all PIPES really want to do.

However, considering they can't sell 21.1 million shares a day, and you think NeoMedia will never be able to repay that $50 million, YA IS GIVING AWAY FREE MONEY.