Martinas B.

Newmarket Technology Inc. OTCBB NMKT Stock

by Martinas B. April 29, 2007
On April 18th, New Market Technology, Inc. announced a phenomenal first quarter with net income up 38%. From just looking at the numbers, one would think the stock would shoot straight up. Take a look at the highlights from the release all around this was a fantastic quarter. 

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-chart.gif
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.

Comments 20

1. Guest
March 30, 2019, 01:45PM

Quotes I have been going to Philip M Verges's new Website, hudsonfulton.com, to learn of new investement opportunities, but have been disappointed by the lack of new information on the site. In fact, it is about 3 years since anything was posted.

The Tanzania project seems interesting along with businesses in Kenya and East Africa. I am particularly interested in learn more about the Think-Tank in Nairobi. Sounds like they are on the cutting edge of financial frontiers.

2. Guest
January 14, 2018, 11:47PM

Quotes Philip M Verges has moved on from Newmarket Technology Inc.,CCTR and a whole list of the losers he put together.

His new business is hudsonfulton.com
Please take a look. On the home page he boast of his past successes. Can you believe this guy. What is more disturbing is the fact the SEC is giving him a pass on all the havoc he is reeking.

3. Guest
November 27, 2017, 02:54PM

Quotes Philip M Verges is a SERIAL entrepreneur extrordinaire in a bad way.

143 Partnership LLC
Beachhead Limited Partnership
China Crescent Enterprises, Inc. – trading symbol “CCTR”
Evermobile Inc.
E Z Horizons
Greenfield Partnership Program
Honduras Hope
Infotel Technologies PTE Ltd., Singapore
Innoprise Capital Management, LLC
Innoprise, Inc.
Intercell International Corp
IPVoice Communications, Inc.
Newmarket Technology Inc. - NWMT
Newmarket Asia Inc.
Newmarket Broadband Inc.
Newmarket China, Inc.
Newmarket Health Technologies Inc.
Newmarket Intellectual Property, Inc.
Newmarket Latin America, Inc.
Nova Energy, Inc. OTCQB: NVAE
NuMobile, Inc. trading symbol “NUBL”
Real Deal IR LLC
Red River Advisors, LLC
RKM IT Solutions
Savanna East Africa, Inc.'s – trading symbol “NVAE”
Small Equity Initiative, Inc.
Spanish Peak Foods and Beverage
Valuerich
VergeTech, Inc.
West Cucharras LLC
Worldwide Strategies, Inc. – trading symbol “WWSG”

4. Guest
November 27, 2017, 02:45PM

Quotes It is now 2017 and Philip M Verges has left a wake of shareholders financially devastated from all of his schemes and bogus companies he created.

To name a few:


WORLD SERIES OF GOLF INC COM WSGF: OTC Pink $0.001
CHINA CRESCENT ENTERPRISES INC COM CCTR: OTC Pink 0.0001
WORLD SERIES OF GOLF INC COM WSGF: OTC Pink 0.001
NORTH AMERN CANNABIS HLDGS INC COM USMJ: OTC Pink 0.0003
PROTEK CAP INC COM PRPM: OTC Pink 0.00001
NWMT, NVAE, NUBL, NLAI (gone!)
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
and the list goes on…….

5. Guest
January 06, 2017, 10:34AM

Quotes perhaps Ivanka Trump could incoperate some ideas to make this company great again.It would be interesting if cnn got hold of this and generate interest.If people could tweet about this stock perhaps the chairman of the board of Newmarket could bring in new sources of revenue and a welcomed sight of cash flow

6. Guest
March 30, 2015, 03:50PM

Quotes That would bring public awarness.People like Bill Gates and Warren Buffet could encant their remedies on this stock.

7. Guest
March 30, 2015, 02:34PM

Quotes will somebody please buy out this company otherwise it feels like we are all in a critical care unit. somebody must be out there who could bring back life in this patient. hope Bill Gates reads this

8. Guest
September 02, 2013, 03:11PM

Quotes Philip Verges is a fraud and a thief. All of his companies are shells in which he sells share and dilutes, keeping the proceeds for himself. Stay clear of anything associated with this man and his cohorts in crime.

9. Guest
January 31, 2011, 01:12AM

Quotes This could be a new genre of Ponzy scheme, where the management seems to use stock issuance and reverse split as a way to inject cash in the company and present a somewhat stable balance sheet, that attract "value investor". They are also releasing continuous poaitive news to support the stock that never materialise.... what is the SEC doing ? Arent they suppose to protect the small investors ?

10. Guest
January 10, 2010, 05:03PM

Quotes This company needs to be investigated by the SEC

11. Guest
September 24, 2009, 08:55AM

Quotes This stock continues to head downward. It is now at $0.02 pre-split. The daily PR's promising things that never happen, the continuing dilution of the stock, the inept management - all point to the stock continuing downward. Get out while you still can, and don't buy any shares of this penny stock scam if you haven't.

12. Guest
May 15, 2009, 02:21AM

Quotes samue,

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?

13. Guest
April 02, 2009, 08:00AM

Quotes All in all, I don't find the difference between $.20 and $.027. That's the same ***

14. Guest
March 21, 2009, 01:37PM

Quotes i am a double upper and short trader. if you can afford apple you can make money all week.

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)

15. Guest
February 13, 2009, 12:23PM

Quotes NMKT is the worst investment I've ever done in my entire life. I don't understand why the CEO and the company overall have not bought any shares, when they are a technology and investment firm that supposedly is doing so well, no better investment than to invest in themselves when the stock value is near junk value.

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.

16. Guest
June 04, 2008, 12:33AM

Quotes Exactly, when this jackass said .78 was the target...was he talking in this life or the next.

17. Guest
February 13, 2008, 01:05PM

Quotes I first boought this stock @ .27 and now have made 4 more purchases and the stock continues to go down. Everyone I talk to says it has got to go up. zi guess the ? is when?

18. Guest
February 13, 2008, 01:05PM

Quotes I first boought this stock @ .27 and now have made 4 more purchases and the stock continues to go down. Everyone I talk to says it has got to go up. zi guess the ? is when?

19. Guest
September 16, 2007, 01:06PM

Quotes Wanted to get your opinion of NMKT now that several months have passed and it's Sept. 07. It's down to .23 but there the news that "they've" put out is great. James

20. Guest
August 01, 2007, 11:01AM

Quotes Hello My Dear, My Name is Liya Muse, i went through your profile and want to know you more better for an important Discussion which will benefited booth of us, kindly get back to me with your email address for more details,
Thanks and be bless
Yours Liya Musa

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