NeoMedia Technologies, Inc. (OTCMKTS:NEOM) Bought Up Again from Rock Bottom
After a long slide, NeoMedia Technologies, Inc. (OTCMKTS:NEOM) is revving up its engines to drive itself out of a deep valley. At triple-zeroes, and with rising volumes, the ticker may be ripe for a new promotion. Also, NEOM is not shy about press releases, touting the spread of its 2-dimensional barcodes in various markets.
The last time we left NEOM, it was a much-desired ticker following the publication of 2012 financial results. The buying volumes spiked to a record, which the buying of the last few days almost reached. Altogether, NEOM added 33$ to $0.0008. At this price, however, large fluctuations are a possibility, since the stock is very accessible and very capable of marking a great progress in a short time. Also, NEOM is very near rock bottom.
Let’s see how the indeed ubiquitous barcodes have helped the finances of NEOM in 2012:
- $2.3 million revenues
- $5.4 million operating loss
- $611,000 cash
- $2.65 million convertible debentures
Most of the licensing agreements of NEOM with packaging companies are non-exclusive, and there are many competing 2-D code producers. The garbled black squares are already ubiquitous on packaging, meaning that producers already integrated the technology and NEOM won’t be finding anything new on the market. Still, as a series of press releases, the high-sounding promises of NEOM did a decent job in propping up a seriously depressed stock.
Also, NEOM holds a large amount of convertible debt, which may not be profitable to convert at such a low price, but after a promotion, the holders may decide to sell off the stocks.
NEOM is still a bit more well-known and active than another contender for quick technological fame, Warrior Girl, Inc. (OTCMKTS:WRGL). The ticker went up on a fast promotion, but despite the initial interest is barely traded now, hovering at a terminally low triple-zero price. NEOM sound a bit more reliable, but still its latest attempt at new levels may turn out to be a dead cat bounce, and even a tenfold climb won’t take the stock anywhere near a respectable price.
While it is possible to benefit from the climbing potential of a depressed ticker, it is best to estimate your own acceptable level of risk. Don’t believe the NEOM story line unless you can afford to lose a large part of your investment.