RE: RE: Jeff, Jeff, Jeff, .....Lets consider why it appears as a scam:
- turn over of management: Scam operations often have multiple management changes of more than one or two people, as mentioned, repeatedly. NEOM had Fritz, then it was ??? (cannot recall his name off the top of my head), and then Ian. The pumpers on the scam will use the management change as a means to say there is new blood, the old mistakes cannot be changed and those decision makers are gone, why would Mr. XYZ with this and that reputation join if it were a scam. For income thats why.
- a scam has activity, and PRs but they amount to nothing in the end. In NEOM's case, those would be, to name what pops off the top of my head the following:
- advertising campaign in Ft. Myers (nothing came of it)
- the promotion with the bottled water company (nothing came of it)
- the promotion with the airline in Spain (never heard anything coming from it)
- the textbook inclusion with McGraw-Hill, lots of promotion there right? Nothing came of it
- the licensing with Virgin, which is now six years old that news. Did this generate income? Could not have been much as I do not recall NEOM posting any significant licensing income along the way in the past six years
- A scam company will be in the business of issuing shares to creditors , then pump the stock, the creditor sells the stock and pockets the proceeds. In NEOM case, they have 1.5 or 1.6 Billion shares as a result of issuing stock. YA loans NEOM money, receives the stock along the way and sells the stock. Once sold, YA has their money back, and can loan NEOM the same money again. To ensure that they are required to sell the stock, YA's agreement states they cannot own more than 4.9% of the company. As such, the pumpers claim they have to sell the stock, they have no choice; but that is what they want to do.
- the company will look as if someone has an interest in their sucesseeding, based on the money they are able to borrow. However, as mentioned above, it is the same money constantly being loaned to them. So in reality, there is not $ 10 million being loaned to them, it is only $ 1 million, but in ten rounds for example; each after the stock has been issued and sold and the original million obtained
Now look at what NEOM owns. NOTHING. The only asset that might be worth anything are the patents. And in my opinion, those are worthless anyways. There are in fact ways to connect from mobile and camera phones without using NEOM technology. But lets say the patents are worth something. Who owns them? NEOM used them three or four years ago, and several 'millions' in loans later, as collateral to YA for a $ 5 million loan. If NEOM were to default on those loans, the patents (the collateral), are legally owned by YA. And the wording of the contract of the $ 5 million was such that if NEOM defaulted on ANY loan to YA, YA can claim ownership. NEOM did in fact default on a few loans I believe eighteen months ago and a year ago. A deal was reached with YA for a new loan, essentially extending the loan they defaulted on. But they did miss the payment, and as such, the collateral has become YA's property. Much like defaulting on a mortgage; just because the bank has not seized the property, does not mean it does not belong to the bank. Imagine they found oil on the property after the mortgage had gone into default? Do you think the bank would make their claim to the land? Same thing here. If the patents are worth anything, YA will claim them for their own. Which brings us to how bio-technology companies operate (and they are well known for their scams).
The biotch scams work this way: The company has some form of interesting patents or formulas that belong to them. The only asset of the company. The company goes under and the patents are bought for a song by some of top management or their largest investors. Well here we are, with a company that has patents as a potential asset. The patents are the company's reason for going on. If they are worth anything, those patents will be sold to either the top investors (YA), or YA simply claims them as their own property. All the legal requirements for this scenario to unfold have been put in place - how convenient for everyone but the shareholders.
Now tell me why this looks like it could be a real company? Based on sales? No. Based on patents? They do not own them anymore (and they carry little if any true value). Based on its ability to show it is a leader in the field? No.
Remember when the excuse for NEOM not catching on in N. AM, was because at that time only Japan and European phones were camera ready? If Japan and Europe were already saturated with camera phones, why is NEOM not big in either? They are a leader right? In five years they have made what progress in those markets?
So there is a recap of what leads me to believe they are a scam. What DD gives you the opinion that it is not a scam?