3SOF

NMKT.ob - NewMarket Technology Inc.

Profile: NewMarket Technology Inc. is a Systems Innovation Company. NewMarket has combined a traditional systems integration and support services capacity with a specialized asset-based approach to assisting its clients with the delicate balance between maintaining legacy systems and gaining a competitive edge from the latest technology innovations. NewMarket provides certified integration and maintenance services to support the prevailing industry standard solutions to include Microsoft (Nasdaq:MSFT - News), Cisco Systems (Nasdaq:CSCO - News) and Sun Microsystems (Nasdaq:SUNW - News). Concurrently, NewMarket continuously seeks to acquire undiscovered emerging technology assets to incorporate into an overall product portfolio carefully packaged to complement the prevailing industry standard solutions.

Fundamentals and News

An amazing annual report was released on Friday:

QuoteNewMarket Technology Inc. Reports Record Net Income of $2.9 Million for 2005 on 101% Increase in Revenue to $50.1 Million
Friday March 31, 11:05 am ET
http://biz.yahoo.com/bw/060331/20060331005418.html?.v=1

----------------------------------
Some highlights from this release:
Operations:

   * Revenue for 2005 increased 101% from 2004 ($50.1m v. $24.98m)
   * Gross profit for 2005 increased 61% from 2004 ($18.6m v. $11.5m)
   * Operating expense percentage decreased (31% of sales in 2005 v. 45% of sales in 2004)
   * Net income before currency translation for 2005 increased 1,788% from 2004 ($2.97m v. $154k)
   * Earnings per share-basic for 2005 was $.028 v .007 for 2004 (300% increase)
   * Earning per share-diluted for 2005 was $.015 v $.004 for 2004 (275% increase)

Balance sheet:

   * Cash position increased 12% over previous quarter ($3.1m v. $2.9m)
   * Account Receivables decreased 25% from previous quarter ($15.1m v. $20.1m)
   * Working capital increased 180% from year-end 2004 ($6.1m v. $2.2m)
   * Stockholder's equity increased 96% from year-end 2004 ($32.8m v. $16.7m)

Cash Flow:
   * Cash flow from operations for 2005 increased 509% from 2004 ($1.6m v $268k)
------------------------------------------------------

NMKT had an amazing year!   There will be a conference call on April 6, 4:05pm to answer any investor questions.  We may see the stock run into this.    

Mr. Philip Verges, Chief Executive Officer, and Mr. Philip J. Rauch, Chief Financial Officer, will conduct a conference call on Thursday, April 6, 2006, at 4:05 EDT to review the 2005 Annual Report and address pre-submitted shareholder inquiries. In the interest of maximizing the value of this conference call for all participants, please submit questions by Wednesday, April 5 to Investor Relations at [email protected]. The dial-in number for the April 6 conference call is 605-772-3200 with access code 784316#. For those that are not able to participate an audio recording of the conference call will be posted on the NewMarket Technology website by Wednesday, April 12, 2006.
---------------------------------------------------------

NMKT management is also projecting strong growth as indicated with these 2 items:

QuoteNewMarket Technology, Inc. Releases Progress Update on $50 M in Revenue Anticipated in 2005 Report, Plans for $500 M and Future of Shareholder Dividends
Tuesday March 21, 11:01 am ET[/i]
http://biz.yahoo.com/bw/060321/20060321005744.html?.v=1

QuoteNewMarket Technology Inc. Updates Homeland Security Strategy and Reinforces Dividend Plan as Part of 2006 Overall Plan for $87 Million in Profitable Revenue
Wednesday March 8, 1:09 pm ET[/i]
Update Follows Recent Research Report Buy Recommendation and Recent Addition of Major General Hugh G. Robinson (Ret.) to Augment Homeland Security Initiatives
http://biz.yahoo.com/bw/060308/20060308005737.html?.v=1

---------------------------------------

Being a profitable penny and growing strong should be enough to make NMKT a great value play but there is also talk of a short squeeze and potential AMEX listing!


Technicals

Long-Term:



----------------------------------

Medium-Term:



-----------------------------------

Short-Term:



-----------------------------------

With great future growth and solid technicals we feel very strongly about the potential in NMKT.  Since this is a penny stock there is a lot more risk in this type of position and you should be aware of that going in.  There is always the risk of some kind of dilution.  Still.. its that risk that sometimes leads to explosive gains.  We think we have that setup here.  Lets see NMKT takeoff!

We will buy NMKT @ the open for both the 3SOF and 3SOV portfolios.

NMKT.ob - NewMarket Technology Inc.

Profile: NewMarket Technology Inc. is a Systems Innovation Company. NewMarket has combined a traditional systems integration and support services capacity with a specialized asset-based approach to assisting its clients with the delicate balance between maintaining legacy systems and gaining a competitive edge from the latest technology innovations. NewMarket provides certified integration and maintenance services to support the prevailing industry standard solutions to include Microsoft (Nasdaq:MSFT - News), Cisco Systems (Nasdaq:CSCO - News) and Sun Microsystems (Nasdaq:SUNW - News). Concurrently, NewMarket continuously seeks to acquire undiscovered emerging technology assets to incorporate into an overall product portfolio carefully packaged to complement the prevailing industry standard solutions.

Fundamentals and News

An amazing annual report was released on Friday:

QuoteNewMarket Technology Inc. Reports Record Net Income of $2.9 Million for 2005 on 101% Increase in Revenue to $50.1 Million
Friday March 31, 11:05 am ET
http://biz.yahoo.com/bw/060331/20060331005418.html?.v=1

----------------------------------
Some highlights from this release:
Operations:

    * Revenue for 2005 increased 101% from 2004 ($50.1m v. $24.98m)
    * Gross profit for 2005 increased 61% from 2004 ($18.6m v. $11.5m)
    * Operating expense percentage decreased (31% of sales in 2005 v. 45% of sales in 2004)
    * Net income before currency translation for 2005 increased 1,788% from 2004 ($2.97m v. $154k)
    * Earnings per share-basic for 2005 was $.028 v .007 for 2004 (300% increase)
    * Earning per share-diluted for 2005 was $.015 v $.004 for 2004 (275% increase)

Balance sheet:

    * Cash position increased 12% over previous quarter ($3.1m v. $2.9m)
    * Account Receivables decreased 25% from previous quarter ($15.1m v. $20.1m)
    * Working capital increased 180% from year-end 2004 ($6.1m v. $2.2m)
    * Stockholder's equity increased 96% from year-end 2004 ($32.8m v. $16.7m)

Cash Flow:
    * Cash flow from operations for 2005 increased 509% from 2004 ($1.6m v $268k)
------------------------------------------------------

NMKT had an amazing year!   There will be a conference call on April 6, 4:05pm to answer any investor questions.  We may see the stock run into this.   

Mr. Philip Verges, Chief Executive Officer, and Mr. Philip J. Rauch, Chief Financial Officer, will conduct a conference call on Thursday, April 6, 2006, at 4:05 EDT to review the 2005 Annual Report and address pre-submitted shareholder inquiries. In the interest of maximizing the value of this conference call for all participants, please submit questions by Wednesday, April 5 to Investor Relations at [email protected]. The dial-in number for the April 6 conference call is 605-772-3200 with access code 784316#. For those that are not able to participate an audio recording of the conference call will be posted on the NewMarket Technology website by Wednesday, April 12, 2006.
---------------------------------------------------------

NMKT management is also projecting strong growth as indicated with these 2 items:

QuoteNewMarket Technology, Inc. Releases Progress Update on $50 M in Revenue Anticipated in 2005 Report, Plans for $500 M and Future of Shareholder Dividends
Tuesday March 21, 11:01 am ET[/i]
http://biz.yahoo.com/bw/060321/20060321005744.html?.v=1

QuoteNewMarket Technology Inc. Updates Homeland Security Strategy and Reinforces Dividend Plan as Part of 2006 Overall Plan for $87 Million in Profitable Revenue
Wednesday March 8, 1:09 pm ET[/i]
Update Follows Recent Research Report Buy Recommendation and Recent Addition of Major General Hugh G. Robinson (Ret.) to Augment Homeland Security Initiatives
http://biz.yahoo.com/bw/060308/20060308005737.html?.v=1

---------------------------------------

Being a profitable penny and growing strong should be enough to make NMKT a great value play but there is also talk of a short squeeze and potential AMEX listing!


Technicals

Long-Term:



----------------------------------

Medium-Term:



-----------------------------------

Short-Term:



-----------------------------------

With great future growth and solid technicals we feel very strongly about the potential in NMKT.  Since this is a penny stock there is a lot more risk in this type of position and you should be aware of that going in.  There is always the risk of some kind of dilution.  Still.. its that risk that sometimes leads to explosive gains.  We think we have that setup here.  Lets see NMKT takeoff!

We will buy NMKT @ the open for both the 3SOF and 3SOV portfolios.

Awsome pick and Analysis G! I love this set up. Count me in tomorrow morning and applauds for the find .

-fous

Superb combination of fundamentals, savy (the move into a hot business zone (homeland security) and TA. I needed variety in my trading portfolio. Thanks a million! Don.

Hi elite
Got in on this one on 3-13-06 @.34 and sold 1/3 of my position Friday @.40 to lock in some profit and holding rest for the run.
I also stated in another thread that I think this will be a good stock to play on earnings for the whole year.
Goodluck to all holding

A little more on NMKT and TA from another mans eyes. 

To get a better idea of the fundamental growth ive included a snapshot of the companys quarter to quarter and annual revenues and EPS. As well as the growth rates. TA analysis and comments in the charts.

-fous

I have traded and posted on NMKT before and also when it was IPVO. The potential upside with NMKT is huge, they have a great sales and marketing story going on here, but as yet have not been rewarded by the market. In fact the reverse has been true, NMKT has been systematically targetted for naked short selling (including listing on Berlin exchange without NMKT permission) and negative chat room stories (surrounding CEO Vergers). All that could become history as the results and forecasts start to build new ownership and interest in NMKT stock. The numbers will start to shout loud!!
I love the risk reward on offer here, but state the above based on what I have seen of IPVO / NMKT these past 2 years or so. It has dissapointed before, but I think momentum is tipping in its favour now.
Good Luck

Quote from: AussieTrader on April 03, 2006, 06:49:46 AM
I have traded and posted on NMKT before and also when it was IPVO. The potential upside with NMKT is huge, they have a great sales and marketing story going on here, but as yet have not been rewarded by the market. In fact the reverse has been true

Hi Aussie,

I have to admit that I had never looked into NMKT before eliteG brought it up over the weekend and it is probably good the same - the disconnect between the company's performance and the stock price would probably have driven me nuts.

Many of the penny picks are mainly technical based with a fundamental cover story based on great promises for the future. NMKT is different; they actually have a track record of delivering on their promises. The graph below illustrates the increasing spread between the stock price and the company's performance.

Short traders are normally highly sensitive to technical signals and with the increased momentum we might see them starting to capitulate 

Michael / eliteG,

What do you mean by buying the stock for both 3SOF and 3SOV portfolios?
Do you buy a double number of shares?

Thanks,
Ohad

Telco on the 6th:

"We believe the 2005 financial results validates NewMarket's business plan introduced in 2002," said Philip Verges, Chairman and CEO. "Launching a new operation with the goal of defining a new market segment is a bold undertaking. Understandably, such initiatives are harshly scrutinized. Our record 2005 profit which represents an increase in operating margins and a 300% increase in earnings per share over 2004 is a major step towards building awareness of NewMarket on Wall Street. NewMarket's positive financial performance is generating new investor interest in our business plan to develop an improved alternative to current corporate high-tech research and development. We firmly believe that many of the challenges in funding research and development can be overcome by our approach to introducing emerging technologies. We look forward to sharing NewMarket's 2005 financial results in more detail on the conference call and providing highlights on progress toward goals in 2006."

Philip J. Rauch, Chief Financial Officer, said, "It will be a pleasure to present these impressive financial results for 2005 and answer questions from our shareholders for the first time since joining the NewMarket team."

Mr. Verges and Mr. Rauch will conduct the conference call on Thursday, April 6, 2006, at 4:05 EDT to review the 2005 Annual Report and address pre-submitted shareholder inquiries. In the interest of maximizing the value of this conference call for all participants, please submit questions by Wednesday, April 5 to Investor Relations at [email protected]. The dial-in number for the April 6 conference call is 605-772-3200 with access code 784316#. For those that are not able to participate an audio recording of the conference call will be posted on the NewMarket Technology website by Wednesday, April 12, 2006.

Because my brokers – E*Trade and Ameritrade – did not let me give a buy order at market I put in an limit order, before the open, at yesterday's close of $0.389 and this did not get filled as the stock took off like a rocket right from the open.

How do you people see the chances that the price will retract to something like $0.40 this morning?

I later changed my limit buy order to $0.422 and this got now filled.

Waiting on this one. Opened similar to ONEV when 3SoF bought. Gap up. Subscribers chasing the ask. Price stalled. So far this follows the ONEV pattern. For the pattern to continue, we'd see slow deterioration of the stock price over the next few days, a gap fill, then acceleration of the pps decline as today's early buyers desperately dump at the bid to get out ahead of the official stop price.

A gap fill would be healthy and would confirm the breakout: http://tinyurl.com/nf4cu

Hopefully this group won't panic and break the chart like it did to ONEV

Quote from: Lucas Scott on April 03, 2006, 10:47:17 AM
Waiting on this one. Opened similar to ONEV when 3SoF bought. Gap up. Subscribers chasing the ask. Price stalled. So far this follows the ONEV pattern. For the pattern to continue, we'd see slow deterioration of the stock price over the next few days, a gap fill, then acceleration of the pps decline as today's early buyers desperately dump at the bid to get out ahead of the official stop price.

A gap fill would be healthy and would confirm the breakout: http://tinyurl.com/nf4cu

Hopefully this group won't panic and break the chart like it did to ONEV

ONEV was a smaller company, the market cap was a quarter that of NMKT, so I am not sure that the 3SOF subscribers buying or selling will have the same effect.  NMKT seems like a more "real" company to me, it has 200 full time employees whereas ONEV has 11. 

The gap may indeed fill, if a short squeeze doesnt happen first.  If it does fill, I may add to my position to mimick a 3SOV posiiton, since somehow I didnt realize at first that it was being bought for both portfolios. 

I have been in and out of NMKT for the last 3yrs and I have to say that NMKT's CEO issues a lot of fluff PRs and always sells shares into the rally to raise capital. That's one of the major reasons that the stock price has been consistently below 50 cents even thought the max has been $1.30. It has beena  one man show up and untill the last few months whena CFO was added. Of course there was a COO who quit. 2005 CEO forecasted $75M but ended up with $50M!!! This was due to a bad acquisition, Logiccorp, Canada. I am not syaing NMKT is not a good stock but the CEO has to exhibit more integrity than he has in the past. By the by in absence of CFO, the CEO was the CFO.

Hopefully the past is rectified, the CEO has learnt a lot and there are better times to come! $500Million in 3yrs is a great forecast but what if it turns out to be $150M. The CEO has very little credibity with the markets. Hope that will change in the future!