Pearson wrote another article mentioning Neon today on SA. In his last article (investors feel duped), he noted that he was shorting Neonode and expected it to drop 40-60% in a few weeks....well, it's been 3 months. I believe the SP was at around 6-7 at the time of the article, so it did drop 15% or so. He now indicates that he is short the other stocks in the article and does not mention that he is shorting Neon.
This proves only that Pearson is the opposite of a "pump and dump". He lies to his flock of sheep (to get them to short) only to cover his own short with the new short sellers that were dumb enough to listen to him...nice gig huh?
The new article attributes Neon's SP increase to Tech Guru's SI articles...Really? Pearson's "facts" are the dumbest nonsense and hogwash that I have ever seen posted about Neon. He tries to connect dots that are unrelated. He brings up the money raised by Neonode and insiders, but fails to mention a net increase in institutional investment in q3 of several million shares. Does anyone here believe that institutions are relying on Tech Guru for their investment advice?.....not to put Tech Guru down as I enjoy reading his articles. Personally, though, I believe that he is a bit overly optimistic with regards to Neon's revenue ramp... JMHO and some idle ramblings as we await the rollout of some printers. This news release should quiet some of the shorts.
The average volume is more concerning than it is encouraging. My guess is that SP moves back down tomorrow....Lots of good things coming, but today's action is probably meaningless.
Short interest as of 11/15 is 9,559,355 shares, up ~150k shares from 10/31. Soon we will find out who is right...shorts of institutions.
Look at Nasdaq under institutional ownership and you will find that institutions bought over 8 million shares in q3 while selling less than 2 million shares. I find it interesting that someone on this board mentioned that Wellington sold 1.1 or so million shares a while back, but failed to mention the large institutional buying. Institutions now own over 55% of shares (21 million) and I believe that insiders still own ~17%...not much left for us little guys to fight over!
axb7092, Can you provide a link or reference? This is highly doubtful as Samsung has been working on this watch for over a year and to our knowledge just signed an agreement with Neonode this year.
only 1 cent per click, but SA e-mails the article to several hundred thousand viewers as noted on the article website. I have personally read each article several times. Hard to know how many people actually click on the article though... and only 1000 of the people who are e-mailed the article (like myself) are specifically interested in Neon articles....so at least 10 bucks to the author!
Van, another comment on Pearson...He has written 40 or so articles on SA in the past year...I have checked the last 5 or so and they are all short....some correct, some not as far as predictive value, fwiw. If he "earns" $2-$5k per article, not bad!
Van, I agree with you but l like to keep informed about what people write. The "pumper" (Tech Guru)on SA actually has gone to some of the Neon investor conferences. As such, I have learned a few things that I was previously unaware of.
Writers on SA get 0.01 per page view. As an example, the Neon article entitled "It's official: Neon has landed both LG and Samsung as licensees" by Tech Guru was e-mailed to ~580,000 people. If they all opened this letter just once, the author would receive over $5k for that article. Same goes for the "investors feel duped" article.
Van, You are right, one must be careful of paid pumpers and bashers with an agenda on the SA board. They get paid twice...once for the # people that read their article, and second if their article influences SP and they can cover the short into the dump or sell into the pump.
As I have said repeatedly before, I have no problem with honest predictions that are wrong, but those with agendas should be drawn and quartered!
I just remembered the Pearson article on SA on 9/11/13.....you know....the "investors feel duped" article. I went back and re-read it where he predicted that Neon ( with a SP around ~7 at that time) would shrink 40-60% within a few weeks to ~$3.50. I wonder how many people Mr. Pearson "duped" by Mr. Pearson into shorting and regret it.
I believe that this behavior should be criminal when someone shorts a stock, comes out with a nonsense exaggerated article (that they get paid for) and then covers their short into the masses of sheep that were duped by their BS article (BTW, same goes for unfounded long articles).
Folks, go to stockcharts ( website) and look at the weekly trend for Neon. The daily chart is helpful for determining buy and sell points, but the weekly chart dictates the long term trend. IMO, now seems the time to buy. Neon may or may not dip to the 4's as some hope for....but I could care less as I expect that it will continue it's ascent next year if not beginning in December...just my humble UNPAID for opinion.
Sentiment: Strong Buy
IBD relies on current trends. It most likely ranked Neon highest when it was over 8. Everyone knows that and that's why no one but neophyte investors uses it (except perhaps you). Would 8+ have been a good time to buy? The metrics that you mention will ALL flip in 2014 once Neon turns profitable and are currently meaningless.
Neon is a trading stock and will continue to be until it turns profitable. As such, buy the trends, but be careful as it has been on an uptrend on the weekly chart with higher highs and higher lows. It is now in a higher low phase.
Neon trades on it's future, not it's past, and will continue to do so. There is ample room for both shorts and longs to make money on Neon due to it's volatility. Because IBD relies on current trends in it's analysis, it may be a contrary indicator in stocks such as Neon...we'll see in the next few months.
mit_mathemetician...There is a name for those that take pleasure in other's perceived pain. Look up the term "schadenfreude". on Wikipedia. It implies low self esteem. Most of your posts are of a similar nature, for what it's worth.
As far as Neon is concerned, add me to your "idiot" list.
Vinny, I respectfully believe that you have Neon all wrong. If you are a short term trader, you missed the boat when the 20 and 50 day moving averages crossed on the daily chart a while back. If you are a true long, then the recent "fluff" should not phase you. Insiders got a bunch of free shares and traded them. Who cares? They have monetary needs just like the rest of us and their basic salaries are not exorbitant like many other companies this size. Insider Rearden has been selling forever. He has sold at lows as well as highs. His buy/sell history makes no sense...maybe he should be nicknamed "Rearend"? ( I hope they read this stuff at Neon!)
You mention 9 Million short sellers. Actually, there are 9.4 million SHARES short as of 10/31, not 9,000,000 SHORT SELLERS. This means that 9.4 millions shares were already sold (at some price) in the hopes of buying back at a lower price. So these shares will provide downside support, not pressure as you suggest.
New investors and institutions are just becoming aware of the Neon story. As such, these new investors have a basis, perhaps at your sell point, and will be patient for news going forward. Like they said at the CC, it will take an act of God for the printer company not to produce earnings, as they are already in production.
In summary, I believe that you sold out too soon, and the Neon story will unfold, perhaps not as quickly as we both would like, but it will unfold nonetheless. Good luck with your investments, and I truly mean that.
bbrutus08, last year, we had a short...h_grant, that made up a bunch of lies to try to convince longs to sell. He basically fabricated some good fiction to weave a story of lies predicting that Neon would go to 2's or something like that. This year, no one is trying to lie about company fundamentals, they are just saying nonsense like "sub 5", "hope it goes to 4's", "soon enough", "give time", etc. without pointing to any fictional company deficiency issues.
Basically, shorts have little to say from a fundamental standpoint. They need big volume to cover and time is against them.
Vinny, I share your frustration with regards to the q3 earnings, but I wasn't really expecting a great quarter. With regards to previous announcements, some of them were small potatoes companies...like the South American bus company...they make something like 40k buses, so that's only ~$40k to us.(ie.no big deal)...or the Korean sign and ATM company.....maybe another $40-50k per year, at most. These Chinese companies that Neon announces deals with...have you ever heard of them before the announcement? Do you trust Chinese companies? They tell Neon that they will do this or that and then may or may not produce. Some of these companies "fall off" as they say. They probably sign agreements with Neon to get a closer look at the technology so that they can steal it to sell in China without repercussions like they have been doing for decades with American technology.
Neon is in a GIGANTIC market space. We are now getting the attention of real companies with names everyone knows (not hu flung poo or suc muc #$%$, etc.) ... and will be in their products starting 2014. Once people see that IR tech has the look and feel of cap tech, has several advantages over cap tech, and is a fraction of the cost, things will change. This will require the ability of investors to have patience and look at the positives while weighing the negatives against them. If I were approaching retirement, I would be concerned about this investment. Long term, though, it just gets better and better, imho.
LOL Doc! December has been a good month for Neon for the past 2 years (20+% gains), followed by 40+% gains over the following 6 months....tic toc tic toc.
axb7092, I didn't give you a thumbs down, but Apple has a lot of IR technology patents of their own and would probably use a work around with regards to Neon. Apple likes to think of themselves as innovative and does not like to use technology available to others. After all, they get higher prices for their units, and exclusivity comes at a higher price.
Apple is far from the biggest volume seller of anything, but their name keeps showing up on this board. We only make money by volume. They have high profit margins because they are cheap and shrewd with suppliers, and want exclusivity. My family has 7 I-phones and several mac books and I-pads and I love their products, but could care less about being in bed with them as far as licensing to them.
Vinny, who are you talking to and what website are you referring to? Any website listing Neon's 2016 earnings would be purely speculative. As far as executive stock options are concerned, show me a company that doesn't give them out like candy. They all are very good to themselves. These options became valuable, though, only when the SP increased from the time that they were given.
Some longs like yourself are losing patience and exiting, while other investors see opportunity and are taking new positions. Institutional ownership is increasing. Clearly, Neon is not making the revenue progress as fast as any of us would like, but I look at where we were a year ago and where we are now in terms of diversification, patents, deals, etc., and I remain optimistic.
I don't expect the lofty revenue projections noted in the SA articles, at least not in their timeframe, but Neon should see profitability in 2014, and the SP will respond to that, imo.
PS: on the Nasdaq website, they list institutional buys, sells and change of position as of 9/30. Between 6/30 and 9/30, I counted ~95k shares sold and ~710k shares purchased for a net institutional purchase of 615k shares over these 3 months. Institutional ownership is now 39.38%, Insiders are 17%.