Jorge Aura's  Instablog

During the last few meetings have been moved more than 1 billion shares in the market. The last float statement by the company is 437 million shares. And the holder of bonds "Ya Global" maximum creditor of the company has the right of conversion of more than 3 billion shares.
Last week the billionaire Patrick Soon bought more than 100 million shares on the open market. Climbing the actions up to $0,056 that marked their maximum. But not to be hoodwinked by this latest news. Neomedia has a long history of emissions of shares to pay debt.

1 - The first reason not to be within are 3 billion of shares that must be distributed in the market the creditor company "Ya Global". There have been many purchases of shares the range between $0.03 and $0.035 with no success in overcoming.

2 - Neomedia is authorized to issue up to 5 billion of shares. The value of the shareholder in this company can be diluted in very near future. Think not only in the purchase of Patrick soon, in this type of companies use much the factor despite to perform a specific purpose and in my opinion the current purpose is to perform dilution.

3 - If the company is sold to Patrick soon be harmed. If there is an agreement for the sale of Neomedia think that the buyer has to take on more than 3 billion shares plus a small premium for the purchase. In any case wait for the buyer to pay more than $0.03 . In my opinion if there is a sale will be only for the part of the patent that may be of interest to the buyer.

Before this movement in the actions have been carried out campaigns to promote the stock.

Conclusions:
Neomedia has an interesting product but it is a company that has not been able to fully exploit their potential. Investors of NEOM.OB always have been hurt. Be wary and be careful with all these maneuvers that are in the market.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

The table below provides information of the compensation of the executive committee collected during the past three years.

In the table we have seen as a reduction in the compensation of the management team can help companies are found in these market situations.
In the following table, we are going to expose the annual net income result of each company.

In some of the cases previously mentioned, losses and wages are increased at the same time. We could take as a reference Trident Microsystems that increased its losses by 83% while wages incomprehensibly increased a 7 %. Finally, we are going to see the case of a company in which the managers never seem to have been controlled. Who regulates in these companies that the best decision is to dismiss the productive staff.

Genta (GNTA.OB) is a biopharmaceutical company engaged in pharmaceutical (drug) research and development. The company is engaged in the identification, development and marketing of drugs for the treatment of cancer and related diseases. A shareholder who purchased shares of Genta on its output to the Nasdaq market recover their money if Genta is quoted over $27,750. In the following table may check the amount of reverse split that has made the company.

Conclusion
Markets change as well as the strategies in the management of many companies do so. In my opinion, you must collect the maximum information you could before investing in any company. Be cautious.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Seven Arts (SAPX) is an independent motion picture production company engaged in developing, financing, producing and licensing theatrical motion pictures for exhibition in domestic, including DVD, home video, pay-per-view, and free television. The shares have a maximum of 52-weeks located in $5.75 and a minimum of 52-weeks in $0.06.
The company yesterday announced the results for the fiscal second quarter of 2012 by providing a loss of $ (1,095,995 ) o $ (0.07 ) per share compared with a net profit of $569.711 o $0.32 per share in the year-ago second quarter. Also provides information on the program of debt relief and have reduced film and production loans by $5 million to under $6 million and reduced our other liabilities by $2 million to under $7.5 million from the amounts at last year end.
In the following table you can see the latest conversions in shares carried out.

Total shares outstanding as of February 15, 2012 was 30,886,342.

The Seven Arts presents a cash flow $32.979 for the second quarter.
The Company also announces its plans for addressing the NASDAQ bid price compliance requirement. Seven Arts can achieve compliance by demonstrating a closing bid price for its common shares of at least $1.00 per share for a minimum of ten consecutive business days by March 20, 2012. The press release stated that the date for achieving the $1 per share closing bid price was March 1, 2012, but in fact the applicable date is March 20, 2012.

Conclusion
The company has just issued press releases for future projects, which have not been performed yet. His productions are just ideas, recently reported the photographic production of "Schism".
In my opinion the company is using the shareholders to pay all current expenditures of the company through conversions in common shares. This conversions in the long term can turn a "spiral of death". My impression about your business, ways of acting, and the situation of the media sector, makes me feel pessimistic about an uncertain future within the market of series B films.

Competition in the sector has years of experience and companies such as Lions Gate Entertainment Corp. (LGF), DreamWorks Animation SKG Inc. (DWA), The Walt Disney Company (DIS) and Time Warner Inc. (TWX) are best placed to withstand the years of stagnation in the sector.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.