By: AllPennyStocks.com News

Wednesday, August 29, 2012

There are always some companies that seem to have the plan, the partners and the product, but for some reason the share price just can’t seem to get off the ground. Maybe it’s a capital structure that doesn’t facilitate growth or maybe it has something to do with sales or management. Putting a finger on the problem can often be elusive. From a 30,000-foot view, all seems to look right for Plainview, New York-based NeuLion, Inc. (TSX:NLN), an Internet video technology provider for delivering live and on-demand content to Internet-enabled devices. Yet, shares have slid from near $10 each in early 2007 to around 20 cents each currently.

In business for a dozen years and trading publicly on Canada’s senior exchange since late 2006, NeuLion has established a footprint in the live and on-demand internet content space. Multi-dimensional, the company delivers solutions to owners and distributors, cable operators and telecommunications companies to capitalize on the massive consumer demand for viewing video content on PCs, smartphones, iPads and other similar devices. How massive is the demand? Consider that information from internetworldstats.com shows about 2.3 billion of the nearly 7 billion people in the world use the internet as of December 31, 2011.

NeuLion's customers include major entertainment, sports, global content and news companies. Customers include household names like the National Football League, National Hockey League, Ultimate Fighting Championship, National Collegiate Athletic Association, China Network Television (CNTV) and more. NeuLion recently inked a deal with Major League Soccer for a new platform called “MLS Live.” Technology partners of NeuLion include the likes of Adobe, Microsoft, Apple, Google and PlayStation to name just a few.

Revenues slipped modestly for NeuLion in the first six months of 2012, but – according to the company - that is attributable to a de-emphasis of certain business initiatives that were not part of corporate core competencies. Amongst other things, the company is focusing additional efforts into the expansion in China, the world’s second largest economy, through its partnership with CNTV.

Revenue for the first half of 2012 totaled $19.1 million as compared to $19.9 million for the same period of 2011. However, cost of revenue and consolidated net losses also were lower as well through June 2012 as compared to the year prior period.

Today, NeuLion said that it has added long time industry executive Greg Willis to its team as Executive Vice President of Sales and Marketing. Willis has spent the last four years at Hewlett-Packard (NYSE:HPQ), most recently as their Global Account and General Manager in the Communications, Media and Entertainment industry. Also on Willis’ resume are positions at Accent Media, the Food Network and HBO; giving him a deep knowledge of growing a business in the digital media industry.

As Executive Vice President of Sales and Marketing, Greg will be responsible for increasing the company's market share and sales volume and will take on the day to day responsibilities for driving new sales at NeuLion, according to today’s corporate statement.

Shares of NeuLion have been on the slide, as mentioned earlier, but they look to be finally holding a base above 15 cents each. Adding Willis is surely not the ultimate answer to why the company cannot grab traction with share value, but the addition could prove to be a catalyst for growth and a strong complement to other corporate initiatives that NeuLion says they are implementing. The market is certainly there and the company has the partners to perform. The second half of 2012 could be a tipping point for NeuLion and the last days of its shares printing prices in the teens. Proper due diligence is, as always, encouraged.

Copyright © 2012 AllPennyStocks.com. All rights reserved. Republication or redistribution of AllPennyStocks.com's content is expressly prohibited without the prior written consent of AllPennyStocks.com. AllPennyStocks.com shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.