Hot Penny Stock: Global Grid Buys 25.9% of NeoMedia (NEOM)

Although you wouldn’t find them on any of the penny stock list that get published around the web about penny stock newsletter promotions, NeoMedia Technologies, Inc. (OTC BB: NEOM.OB) has been breaking out every other day almost since the hot penny stock received its patent approval. NEOM, a pioneer in global mobile barcode management solutions, led the top 10 penny stocks in total trades, dollar volume, share volume and percentage gains when they closed at 0.033, up 67.51% on volume of 248,229,398 shares traded after they popped onto Global Grid, LLC’s radar screen. All in all, penny stock trading in NEOM totaled 4,115 actual trades. Those who followed  NEOM when we first profiled them as one of the best penny stocks to buy now in January are up 144.44% unless they sold at 0.585 last week, a 333.33% gain.

When we at AimHighProfits first alerted readers investing in penny stocks about NEOM citing it as a good penny stock to buy in January, the penny stock was only trading at 0.0135 and we had not really heard the name Dr. Soon-Shiong or his company Global Grid, LLC ever mentioned in th same sentence as NEOM. We reviewed their last 10Q and considered them to be a good buy. OTC Bulletin Board listed NEOM announced last week the launch of their updated NeoReader. For use on virtually any licensed smartphone made, the NeoReader is a barcode-scanning software application.

Owners of Apple iOS, Android, BlackBerry, Symbian and Windows Phone 7 are now able to get upgraded apps from the Apple App Store, Android Market / Google Play, BlackBerry App World, Nokia Store and Windows Marketplace. The NeoReader transforms a user’s smartphone into a barcode scanner and seamlessly connects to mobile content. This announcement came almost minutes after NEOM.OB announced that the U.S. Patent and Trademark Office (USPTO) awarded NeoMedia a patent pertaining to the resolution of mobile barcodes.

NEOM Stock Snap Shot:

Market Cap: 14.43M
Enterprise Value: 42.22M
Price/Sales (ttm): 4.35
52-Week High (May 31, 2011): 0.23
52-Week Low (Mar 15, 2012): 0.01
Avg Vol (3 month): 27,908,600
Avg Vol (10 day): 146,929,000
Shares Outstanding: 437.38M
Float: 420.54M
Revenue (ttm): 1.98M
Revenue Per Share (ttm): 0.03

NEOM Insider Purchases for the last six months total out to ZERO. Not one purchase for nearly a year until about a week ago when Dr. Patrick Soon-Shiong and his Global Grid stepped up and bought 25.9% of the outstanding common stock. Global Grid filed this Schedule 13D:

Between March 14, 2012 and March 16, 2012, Global Grid purchased an aggregate of 113,494,743 shares of NEOM Common Stock on the open market at an aggregate purchase of $3,658,274.15, as follows:

  • On March 14, 2012, Global Grid acquired an aggregate of 11,894,651 shares of Common Stock at
    a weighted average price of $0.01 per share, at prices ranging from $0.009 to $0.013 per share.
  • On March 15, 2012, Global Grid acquired an aggregate of 25,000,000 shares of Common Stock at
    a weighted average price of $0.02 per share, at prices ranging from $0.01 to $0.02 per share.
  • On March 16, 2012, Global Grid acquired an aggregate of 76,600,092 shares of Common Stock at
    a weighted average price of $0.04 per share, at prices ranging from $0.02 to $0.06 per share.

The funds used by Global Grid to purchase these NEOM shares of Common Stock were from internal sources.

About Patrick Soon-Shiong

Patrick Soon-Shiong is a rarity. He is the only physician on the Forbes 400 list to have made billions in biotech. He developed a new delivery method to administer Paclitaxel, a widely-used breast cancer drug. His net worth is estimated at $7 billion, which he made by selling two drug companies within the past three years. Altogether, he is one of only three biotech billionaire entrepreneurs in the U.S.

Patrick Soon-Shiong, M.D., is a South African-born Chinese American physician, surgeon, scientist and inventor who has pioneered revolutionary new treatments for diabetes and cancer. He is a named inventor on more than 50 patents and the author of more than 100 scientific papers. He developed the first encapsulated islet cell transplantation treatment for diabetes and the first nanoparticle albumin-bound FDA-approved oncology drug. He is the founder and former chief executive officer of two NASDAQ-listed, multi-billion dollar pharmaceutical companies.

NEOM is in a very niche market that has recently experienced explosive growth. The patent, Patent No. 8,131,597, entitled, “System And Method For Using An Ordinary Article Of Commerce To Access A Remote Computer”, generally covers systems and methods for providing NEOM’s NeoReader automatic access to remote computers through a printed barcode.

With Mobile marketing being such a rapidly growing market, this patented system and method allows users faster and easier implementation of new applications and services. NEOM’s newly issued patent is now part of the penny stock’s intellectual property portfolio which already includes more than 50 issued and pending patent applications in this space.

Apps are the new “thing” kinda like headphones were when the iPod first came out. NEOM’s NeoReader app bridges the gap between old and new media letting any user with a camera phone to scan both 2D and 1D code types so they can gain access to specific web content, real-time product or service information, download content, or complete a mobile commerce transaction with one click.

NEOM may have simplified life for all of us lazy-types who want things made simpler every day by no longer needing to type in long URLs, scroll through long lists of search results or navigate slow and bulky mobile phone menus.

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Bottom Line: Will NEOM change the world? It’s doubtful but Dr. Patrick Soon-Shiong and Global Grid, LLC now have a huge amount of leverage with the voting power in NEOM. If you followed the January 11th NEOM alert, book profits.

Penny stock traders and owners of NEOM shares should take note that the majority of the shares purchased were at an average price of 0.04. However, if you look at the total investment and when Global Grid got into this, the actual average price per share paid for the 25.9% stake in NEOM was 0.0322, or 3.22 cents per share.

At the very least, it should be very interesting to see what Global Grid decides or intends to do with NEOM.

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