From I-hub
Penny Stock NeoMedia Tech (NEOM) Could Benefit from GDP Numbers
It all started at Wal-Mart.
Thursday April 30, 2009 9:02 AM PDT
https://community.smallcapnetwork.com/Penny-Stock-NeoMedia-Tech-NEOM-Could-Benefit-from-GDP-Numbers/s/article/view/p/mid/1/id/43/
By Dennis Askew
The Commerce Department reported yesterday that the overall economy, as measured by the Gross Domestic Product, fell at an annual rate of 6.1 percent in the first three months of the year after a 6.3 percent plunge in the fourth quarter. This marked the worst back-to-back declines in GDP in a half century.
But the market soared upward yesterday and closed significantly higher and opened today over a hundred points carrying the DJIA past 8300; quite the threshold considering the GDP numbers.
In its report, Commerce noted a highlight: inventory.
Even with the expectation that consumer spending could turn negative again in the second quarter, economists are looking for the GDP decline to slow as much as three percent, noting that businesses will 'not' be slashing inventories at such a rapid pace as they did in the first three months of the year.
As oil always moves against equity, oil prices rose even though the government reported that the U.S. is consuming less than it has in years and inventories are bloated with the most surplus crude in nearly two decades.
With the exception of 2008 U.S. model cars sitting on rented lots everywhere, retail and wholesale shelves have been emptied, but the oil containers are full; very full. As the economy stages a comeback and consumer spending increases (Consumer spending is 2/3rd's of Gross Domestic Product - GDP) inventories are going to have to be brought up to speed to meet new demand and controlling that inventory is important; very important.
The reason why Wal-Mart (WMT) became the biggest company in the world for so many years (only surpassed by Exxon-Mobile (XON) last month) was that founder Sam Walton figured out supply and demand: it was taking a week to restock his shelves. Once he got it down to a next day system, then with barcodes an instant accountability, Wal-Mart literally flew by every single retail competitor and it took years for them to catch up.
So in the IT Services Industry and the Computer Hardware Industry, inventory control became a primary focus and a primary revenue generator.
What is it exactly? An inventory control system is an integrated package of software and hardware used in warehouse operations, and elsewhere, to monitor the quantity, location and status of inventory as well as the related shipping, receiving, and picking processes. Not only are inventories controlled at stationary check stands via barcodes, mobile devices are used on everything from shipping containers to books.
Researching yesterday's GDP news and the inventory 'highlight' I came across a true penny stock; NeoMedia Technologies (NEOM) on the Bulletin Board that trades at $0.02.
NeoMedia
NeoMedia . Home was founded in 1989 and it provides a suite of software and hardware for processing 1D and 2D barcodes in the mobile environment, and enabling applications in mobile marketing, mobile couponing, mobile ticketing and mobile payment in Europe and internationally.
NeoMedia's legacy software products include MaxiCode Encoder that creates symbols in the print stream of choice; Portable Date File 417 Encoder, which creates bar code print streams for desktop, mid-range, and mainframe platforms; and Wang Interchange Source Processor, an integrated set of utilities that facilitate the migration of Wang VS COBOL applications to the open systems and Internet-ready world of UNIX or Windows NT
Impressive products and NeoMedia's numbers aren't too bad either. The Company has a market cap of $26M and a two cents, is a penny above its 52-week low and three cents beneath its 52-week high. Its 50-day and 200-day moving average is a penny. NeoMedia's outstanding shares and float are near-parity (it has a lot of shares out there and a company buyback would help the trading price) and its trailing twelve month revenues are $1.36M. Its trailing twelve month revenues per share are infinitesimal at $0.001.