Financial Report Highlights
Balance Sheet:
- Cash position up 25% over last quarter ($3.3m v. $2.6m)
- Stockholder's equity up 32% from year-end 2005 ($43.2 v. $32.8m)
Statement of Operations:
- Revenue for 2006 up 55% from 2005 ($77.6m v. $50.1m)
- Revenue for 4th quarter 2006 up 60% over 4th quarter 2005 ($24.5m v. $15.3m)
- Gross profit for 2006 up 18% from 2005 ($21.9m v. $18.6m)
- Operating expense percentage down, 22% of sales in 2006 v. 31% of sales in 2005
- Net income (before currency translation) for 2006 up 38% from 2005 ($4.0m v. $2.9m)
- Net income for 4th quarter 2006 up 18% over 4th quarter 2005 ($1.7m v. $1.5m)
That was 2 weeks ago and the stock is actually down. So what gives?
Newmarket Technologies Inc. OTCBB NMKT - Chart
Beacon Equity Research has a price target of $0.78 on the stock. On the surface we like the stock, and feel it is one of Beacon's better picks. We don't doubt it can hit 0.78 but we think even if it went to $0.78 it is not sustainable.
We may buy a tiny ammount on a new 52 week high, but definitely we would not buy it here. Newmarket is a service business, they do custom integrations for large corporate customers. We prefer product and brand driven companies. We liken this type of service work to a corporate version of shining shoes. The problems with service business are multiple. To name a few: you never build a brand, it is difficult to sell the business, and losing contracts means your sales go down as quickly as they go up.
Technically, the stock is showing really poor relative strength. The market is hitting new highs, and this stock with their best quarter in history cannot get out of its own way. That is not good.
That being said, this is still a nice well run business, with a decent balance sheet, and is showing nice earnings so far. Good job Philip Verges, and Philip Rauch.
User comments
Also the stocks for this company have gone bellow 10% its highest value in the last 52-week range, and this is with no bad news at all, hiding behind bad economy is no excuse enough, this low lows have only happen to companies that have brought bad news to the table. Can you imagine what is going to happen to the share value once nmkt start bringing bad news that can not be avoided? This is going to become junk and we all are going to loose everything. I have less than 10% of my investment as of today, and I believe the only way to not loose this insignificant amount of money left is to get out completely.
False promises of dividends and sharing other companies shares with nmkt investors, etc. make me believe that this company and its CEO is like several other companies and their managers where they will say anything and forget completely about promises and realities.
My advice to anybody is that it is better to have one penny in your pocket than having nothing, get out now before the bad news come and the stocks becomes what the company actually is... Junk.
NMKT is a great double up stock until what you call "junk" settles in. these guys flip the penny and are safe at this price of 2 cents just over 3 cents. NMKT is near sure to get back up to the 6 or 8 cent mark just sit for a few more months. This company is making mucho money in a bad economy and is making more and more contracts left and right. When we curve out of this *** mess we are in NMKT will rise back in the .20s.
Refrence:
Turned 10k inheritance into 433k in 5 months.
LISTEN:
APPL: weekly trade
NMKT: bi-monthly trade
F: Long Term Investment (ford is rock effing solid if you want to send your little kids to college)
the difference between $20 and $.027 is over 740%.
if someone was to buy $10,000 of shares @ $.027 and then if the share price went to $.20 those shares would be worth over $74,000.
unfortunately for me; I am on the other side of the trade. i bought some higher than $.20 so i would like it to get back over that level.
does anyone besides don think this stock has potential to go up?