Penny Stock on Watch: NeoMedia Technologies Inc. (NEOM)
  • Penny Stock Spotlight: NeoMedia Technologies Inc. (NEOM) Gives Up Gains
  • Stock Alert for NeoMedia Technologies Inc. (NEOM)
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    Stock Alert for NeoMedia Technologies Inc. (NEOM)

    NeoMedia Technologies Inc. (OTC: NEOM) provides 2D mobile barcode technology and infrastructure solutions that enable the mobile barcode ecosystem worldwide. Its technology platform transforms mobile devices with cameras into barcode scanners, enabling a range of practical and engaging applications including consumer oriented advertising, mobile ticketing and couponing, and business-to-business commercial track and trace solutions. NEOM’s suite of products, services and extensive IP portfolio means it is the only provider able to offer customers a comprehensive end-to-end mobile code solution. The Company’s current customers include handset manufacturers, platform providers, brands agencies looking to offer pioneering mobile barcode solutions to their customer base.

    Share Statistics (16-Mar-12)   FY

    2009

    FY

    2010

    %

    Chg

    Q3

    2010

    Q3

    2011

    %

    Chg

    Symbol NEOM Revenue, $Mn 1.66 1.52 -8.4% 0.34 0.53 55.9%
    Current price $0.06 Gross marg. 6.0% 30.3% 405.0% 29.4% 37.7% 28.2%
    52wk Range: $0.01-$0.23 Oper. margin -800.9% -250.8%
    Avg Vol (3m): 12,488,200 Net margin -4059.0% 2308.6% -156.9% -7538.2% 11,217.0% -248.8%
    Market Cap. 24.49M              
    Shares Outstanding 437.38M EPS, $ -3.39 0.00 -1.13 0.02 -101.8%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    NEOM soared past 160% gains Friday on heavy volume of over 287 million shares.  Over the last 52 weeks, the stock has ranged from a low of $0.01 to a high of $0.23. Market capitalization currently stands at 24.49 million and it has 437.38 million outstanding shares.

    Shares of the mobile barcode scanning services provider have jumped 438.5% in the last five days; 591.4% in the last month; and 59.5% year-to-date.

    NEOM shares saw heavy trading earlier this month after the company announced that the U.S. Patent and Trademark Office (USPTO) has awarded it a patent pertaining to the resolution of mobile barcodes, a market which it said has recently experienced explosive growth. The Company said the recently issued patent is part of an intellectual property portfolio that includes more than fifty issued and pending patent applications in this space.

    NEOM CEO Laura Marriott commented that the Company is delighted that the USPTO has issued the ‘597 patent, which combined with its already formidable patent portfolio, continues to allow the Company to realize the potential of its innovations and the first class services it offers its partners.

    Also recently, the Company announced the launch of its updated NeoReader® barcode-scanning software applications for Apple iOS, Android, BlackBerry, Symbian and Windows Phone 7 users, enabling users to transform their devices into barcode scanners and seamlessly connect to mobile content.

    NEOM states that NeoReader bridges the gap between traditional and digital media, allowing all users with camera phones to scan both 2D and 1D code types in order to access specific web content, real-time product or service information, download content, or complete a mobile commerce transaction with one click. Users no longer need to type in long URLs, scroll through long lists of search results or navigate cumbersome mobile phone menus.

    NEOM in February named Colonel Barry S. Baer as its new CFO. He has served as both CFO and CEO to a wealth of public, privately held and not for profit companies and prior to this served as an officer in the U.S. Army for 27 years, retiring at the rank of colonel.

    “The next 12 months will be a time of critical growth for NeoMedia and with the addition of Barry to our leadership team, we are more confident than ever that we will deliver strong financial results and increase shareholder value,” commented CEO Marriott.

    Shares in NEOM added $0.03 to close Friday’s trade at $0.06.

    Source:

    http://www.neom.com/press/press_releases

    Financial Summary

    NEOM reported revenues of $528K for the three months ended September 2011, up 56% from $338K reported in the three months ended September 2010. The Company had loss from operations of $1.3 million for the quarter, compared to loss from operations of $1.4 million in the comparable quarter of the prior year.

    The Company saw a net income of $59.4 million for three months ended September 2011, compared with a net loss of $25.6 million in the same quarter in the previous year. The Company attributed the increase in net income to gains in the fair value of its hybrid and derivative instruments during the three months ended September 2011, compared with a loss in the previous year.

    As of September 30, 2011, the Company had $250K in cash and cash equivalents, up 213% from $80K at December 31, 2010.

    Source:

    http://biz.yahoo.com/e/111114/neom.ob10-q.html?legacy=1

    Financial Strength (16-Mar-2012)

    Company

    Industry

    Sector

    Quick Ratio (MRQ) 0.01 0.55 1.00
    Current Ratio (MRQ) 0.01 2.97 2.76
    LT Debt to Equity (MRQ) 8.68 10.95
    Total Debt to Equity (MRQ) 14.92 20.21
    Interest Coverage (TTM) 0.79 1.18

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Mar16-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Digimarc Corp. DMRC 28.08 188.44M 22.46 22.29 3.72 4.10
    Motorola Solutions Inc. MSI 50.53 16.07B 16.79 14.69 1.86 1.76
    Business Software & Services Median       20.80 n/a 2.00 n/a
    NeoMedia Technologies Inc. NEOM 0.06 24.49M n/a n/a n/a n/a

    Source: Thomson Financial

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