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By Ekaterina Zelenkova
Aug 10, 2011

NeoMedia Technologies, Inc. (OTC:NEOM) Stock Boosted On No News

NEOM_price chart_090811.jpgYesterday, NeoMedia Technologies, Inc. (OTC:NEOM) stock surged 25% between the trading sessions to close at $0.04 per share on no news. The price escalation of NEOM has been supported by the heavy trading volume of almost 5.7 million shares.

The price boom was, maybe, not as much in unison with the boosted yesterday financial markets, but in synchrony with the widespread stock alerts on NEOM.

The most recent company developments are this from the end of the last month, when NeoMedia Technologies, Inc. disclosed information about the resignation of Michael W. Zima as the company's Chief Financial Officer and Corporate Secretary.

As the chart here shows, even the immediate appointment at the above position of Robert W. Thomson, who has been previously the company's Corporate Controller, was not able to excite investors as much as the absence of news yesterday. Further more, if yesterday the financial markets rose on the Federal Reserve's assurance to keep interest rates low, the price of NEOM surged without any assurances.

NEOM_from the site.pngThough, no disclosures have been done about a paid promotion for NEOM.Yet, free stock alerts, most probably, supported the stock rush these days.

Last Thursday, the online media SmallCap Network reminded of NEOM in its section "Focused Small Caps".

Yesterday, a volume alert on NEOM may have inspired many investors and supported the upward move of the share price. At the same time, most probably, some investors forgot a few, not as bullish, facts related to the company. It is possible that these investors just relied on the possibility for short-term gains on NEOM.

At the end of June, NeoMedia Technologies, Inc. announced that it agreed to sell to YA Global Investments, L.P. secured convertible debentures that will have an aggregate principal amount of $1.05 million. The debenture is secured by pledges made with respect to the company's assets. The so called “Patent Security Agreement” is part of the agreement.

At the same time, as of the end of this March the company had total assets of $8.3 million. From this amount, the highest relative share has the company's goodwill, valued at $3.4 million, proprietary software for $1.3 million and patents and other intangible assets of almost $2 million.

Although the company's assets are exceeding by times its debt, still in the future financial reports of NeoMedia Technologies, Inc. the ratio between the company's debts and assets will be dramatically changed. At the end of this March, NEOM had total liabilities of only $79.43 thousand.

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