NMKT.OB

[eliteG]

update NMKT:

Our plan for today was to sell in the morning and hopefully stay in to see the reaction to the CC but protect from loss by setting a stop.  This plan executed perfect.  We got a beautiful gap up to sell, THE HIGH OF THIS RUN! and the stock found a bottom at 55 cents.. 2 cents above our stop. 

Now we get to see what the reaction will be.  From what you guys are posting (I didn't listen to CC) it seems that that conference call did not give out any stellar news.  The dividends by shares in spinoffs is pretty lousy(not surprising though).. I do not see much value in getting shares of a .ob spinoff.  To minimize dilution = there will be some dilution.  Must be above 1 for AMEX so they need to push it.  Yet the revenue is still there and their guidance.. will that be enough for the crowd?

"Rome is the mob"

We are going to stick with the stop @ .53 and not try anything fancy.  If we get knocked out.. it was a great trade.. dont fall in love with these pennies  , we'll find more, no doubt    .. and we will keep NMKT on the radar.  In case NMKT manages to rise.. well now.. I'm ok with that. 

We will hold NMKT unless it hits our stop @ .53.

[eliteG]

update NMKT:

Our plan for today was to sell in the morning and hopefully stay in to see the reaction to the CC but protect from loss by setting a stop.  This plan executed perfect.  We got a beautiful gap up to sell, THE HIGH OF THIS RUN! and the stock found a bottom at 55 cents.. 2 cents above our stop. 

Now we get to see what the reaction will be.  From what you guys are posting (I didn't listen to CC) it seems that that conference call did not give out any stellar news.  The dividends by shares in spinoffs is pretty lousy(not surprising though).. I do not see much value in getting shares of a .ob spinoff.  To minimize dilution = there will be some dilution.  Must be above 1 for AMEX so they need to push it.  Yet the revenue is still there and their guidance.. will that be enough for the crowd?

"Rome is the mob"

We are going to stick with the stop @ .53 and not try anything fancy.  If we get knocked out.. it was a great trade.. dont fall in love with these pennies  , we'll find more, no doubt    .. and we will keep NMKT on the radar.  In case NMKT manages to rise.. well now.. I'm ok with that. 

We will hold NMKT unless it hits our stop @ .53.

[Michael]

For those who didn't managed to get in on the CC (including myself  ) here is a nice summary stolen from RagingBull 

20060406 NMKT CC

Start: 4:08 PM EDT
Stop: 4:52 PM EST
Duration: 44 minutes

In attendance: Philip Verges, CEO; Philip Rauch, CFO
- - - - - -

Conference call format:

1. Overview of the company
2. Review of the published 2005 financials
3. Provide commentary on the recent appreciation in share price
4. Address Shareholder questions
5. Highlights for 2006
6. Brief review at the end about the return from the China Trade Mission. Phil Verges and Huge Robinson returned as recently as last night.
- - - - - -

The c.c. is coming from Houston, TX, from the branch office of the Dallas Federal Reserve. Phil Verges and Phil Rauch are there to sign and work on a significant business opportunity.

Information disclosed in this conference call will be released in a press release tomorrow morning. A recording of the call will be put on the company's web site.
- - - - - - -

1. Corporate Overview (Phil Verges, CEO)
(Nothing new here.) One half of sales currently come form the Systems Integration side of the business.

2. Review of the published 2005 financials (Phil Rauch, CFO)
a. PR reviewed the highlights previously disclosed in the PR that accompanied the 3/31/2006 filing.
b. PR did an excellent job of hammering home the large percentage increases in the categories.
c. As the Cash Flow increases, this will provide NMKT with the opportunity to acquire future acquisitions with all cash, if not with cash and shares combined.

3. Highlight share price appreciation
a. The published 10-KSB results was the catalyst for the increase over the past week.
b. NMKT's price is transitioning to one based on the value of the underlying financials.
c. The trending down of the price in the past two years was based on investor speculation that the company could not maintain a sustainable operation. However, the 10-KSB
demonstrated that the use of equity over the past two years has demonstrated sustain ability. This showed that the company has exhibited prudent use of equity over the
last two years.
d. The notable expanded board of directors and the expanding management team, in addition to the financials, has sent a clear message to the investment community.

4. Shareholders questions
a. Shareholder questions have been grouped into four (4) categories:
1) 10-KSB vs. 10-K
2) National exchange listing plans and objectives
3) Dividend strategy
4) capital structure, as it impacts the fully diluted issued and outstanding shares.

1). 10-KSB vs. 10-K; Why was the FY2005 filed using the "small business" designation?
* The "SB" designation allows for providing period comparisons over just 2 years. The 10-K requires comparable over 3 and 5 year periods.
* After two years in a row of revenues in excess of $25M, then the next annual filing can no longer make use of the "small business" (SB) format. As such, FY2006, filed in 2007 will be a 10-K instead of the 10-KSB.
* Starting with the first quarter of 2006, the filing will be on a 10-Q, sans "SB". The 1Q06 10-Q will be filed on time.
* Why was there no break out information provided by the operating units and subsidiaries?
** PV and PR have discussed this. Given that the goal is to spin-off each and every subsidiary, once each spin off happens, then each individual subsidiary will be subject to providing their break out in their own 10-QSB and 10-KSB filings.

2). National exchange listing plans and initiatives
* A move to a nation exchange is one ONE of the initiatives that NewMarket is pursuing. The AMEX listing is only ONE, not the ONLY, and not the PRIMARY initiative.
* Which exchange? NewMarket applied to the AMEX under standard 3. NMKT can not comment at this time that AMEX will be the ultimate exchange that they will be listed. AMEX does offer advantages over NASDAQ. AMEX is in the process of defining itself as a micro-cap exchange. Nasdaq, on the other hand, is moving away from micro-cap listings.

Reverse Split concurrent with the new exchange listing?
* At the time that NMKT applied to AMEX, it did so under the exemption that did not require a minimum price for listing. Since the application, the SEC reviewed the AMEX
standards and has eliminated the standard three exemption. A bonified argument can be made that NMKT should be grandfathered under the requirements in place at the time they applied and paid their fees. Phil Verges can not comment as to the resolution of that argument with AMEX. PV will also not comment on the timing of expectations for a new listing. NMKT has the listing as a high priority and they are working diligently on achieving that listing. NMKT has as an objective a listing within the 2006 calendar year. No date will be provided specific to that.

3). Dividend Strategy.
* Defense Technology Systems (DFTS) Spin-off:
** Background: NMKT sold its 51% stake in DCI to DFTS in exchange for preferred stock in DFTS. NMKT will convert one category of their received preferred DFTS stock into common shares of DFTS stock to distribute to NMKT shareholders of record (July 1, 2005).
** NMKT has every intention of distributing that dividend. Subsequent issues sidetracked the conversion of that preferred stock. The original date of record (July 1, 2005) for NMKT shareholders is still in place.
* There are new dividend opportunities within the next 12 months:
** Spin off of Systems Integration business, VoIP Business, NewMarket China.
** Additional equity opportunities exist with the affiliates. Shareholders should see announcements within the next 12 months.

4) Capital structure
* Objective is to reduce the fully diluted issued and outstanding. The convertible preferred stock was issued relative to acquisitions. The same with the convertible
debt. The board of directors and management are actively involved in restructuring the convertible stock and debt. They are looking for ways to convert existing stock and
debt into shares of the subsidiary that will be spun off. Their intention is to mitigate dilution to NMKT common stock. A plan is being worked on. We should see announcement on the subject. The plans are being worked on and they are important to NMKT. The preferred stock and debt will be converted into other securities that will
be spun off.
* VergeTech (VTI): The restructuring of preferred will involve ALL convertibles, including VergeTech convertible debt (40M shares). Options for the VTI debt is to either
take it to straight debt with no conversion feature, or with a balance converting into the stock of a subsidiary.
* Management ownership of NMKT stock. Management ownership is disclosed in all filings. Management and the board of director members will participate in ownership and file the proper documents.

5. Highlight of 2006 guidance and forecast:
* The official guidance was for a 15% compounded growth rate.
* The internal business plan has a goal of potential revenue of $7M. This far exceeds the 15% growth rate.
* NMKT will provide an upward revision, either as a number or as a percent, as the new numbers dictate. The new revision will be made publicly.
* The UniOne Consulting acquisition had $14M in 2005 revenues. The 1Q06 10-QSB will reflect that acquisition.
* Results beyond the plan will be achieved. NMKT has additional UniOne category transactions in the pipeline.
* NMKT is also working to develop organically larger and longer contracts. NMKT is looking to expand their information technology into "Business process outsourcing" (BPO).

6. Review of China Trade Mission
* Previous trade missions were focused on raising capital for the NewMarket China subsidiary.
* This past trade mission shifted gears and was concentrating to develop China as a major aspect of the company's Business Process Outsourcing (BPO).
* China, as a country, is making an investment in Business Process Outsourcing. The country is graduating more students in that aspect of information technology.
* china currently has $3 billion BPO from Japan.
* On our trip, NMKT visited information technology business process outsoursing firms that we would consider as partners and as potential acquisitions.
* Dr. Wendel Jones is a published author on the BPO subject. New details of Dr. Jones and Huge Robinson response to NMKT's plans will be forthcoming.
* NewMarket will be releasing details regarding a Chinese development software center in North America. NMKT intents to bring BPO to China by being able to demonstrate those capabilities in North America.

There will be a press release next week.

(End of Conference Call)

The expectations to the CC was obviously huge so it is difficult to forecast the reaction but all in all it seems to be a very upbeat and exciting call. I like the China BPO strategy. will be exciting to see the press release next week.

It seems we also can expect a press release in the morning hours with highlights from the CC.

It is going to be an exciting day!

[eliteG]

We sold NMKT @ .53.

[supergeek]

I was up almost 40% at open yesterday, check back a couple hours later and its all gone. check in today and now im holding heavy bags full of potential. i just cant seem to time anything right. I wish a bio-med company can devise a pill to help the mood swings associated with idiotic trading timing. they'd make a fortune off me.

[eliteG]

We sold NMKT @ .53.

[eliteG]

I was up almost 40% at open yesterday, check back a couple hours later and its all gone. check in today and now im holding heavy bags full of potential. i just cant seem to time anything right. I wish a bio-med company can devise a pill to help the mood swings associated with idiotic trading timing. they'd make a fortune off me.

you didn't sell the gap open yesterday per plan?

[tokyopua]

Sold 3K shares at the stop then decided to keep 10K and see where this goes.  Anyone else still in?

[wrangler]

Hi tokyopua
I'm still holding and plan to hold but I've been in this since 3-13-06 and my first buy was @.34 and have made two sells and re-entered once since then so my shares I'm holding is free shares so I'm not lossing holding these,that's why I plan to hold these.
I believe it will slowly work it's way back up when next PR about earning's comes out in May. I stated in one of the threads on NMKT that I believe it is forming a new support somewhere between .50 and .60 and I believe by the end of next week the new support and resistance will be shown on the chart.
Goodluck to all holding
Excellant pick elite,,you have really brought this site to life since being added to the board.
Keep up the good work. You have an excellant future in the market world.

[tokyopua]

Wrangler,
Thanks for that perspective.  I managed to buy in at .4 so am not losing too much holding here presently at .5 levels, and am willing to wait till May with this reduced position made up of almost free shares from the profit I made selling half at .665 

[wrangler]

Sounds like a plan,,tokyopua
Let's hope for a good month ahead till release in May

[boatguy]

Alright guys, I'm still in, sold half at .675 and bought it all back at .5

I think Wrangler is right, this stock will have more numbers to show soon. This run may just be the tip of the iceberg.

Good Luck to us!!

[Lucas Scott]

I'm holding as well and believe green days are ahead. Unless it was a very well-orchestrated pump and dump like STTK, it should go to higher levels in the near future based on the huge volume we saw this week. And just to clarify, when I say pump and dump I'm not talking about 3StocksOnFire or anyone here. I'm talking about boiler rooms, organized crime, etc. Sure I wish I'd sold the gap up on Thursday and bought back today. I also wish I'd bought TASR at $4 the year it went to $180. I wish I could wake up Monday and see 10 of my stocks up 800% in premarket. But I must deal in the here and now. NMKT is going up and I'm going to hold on for a max gain. Good luck longs!

[boatguy]

I would be interested in hearing Michael and Elites opinions on this stock.

Fundementals didn't change, numbers were good for the CC, heck everyone knew the news before it came out to begin with.

The pump and profit taking on the run are over is this still a value play and if not why?

I'm all for daytrading a stock as the market ebbs and flows, however if we find a stock worth holding on a fundemental basis shouldn't we hold a position in the stock and still trade it short term?

[eliteG]

I would be interested in hearing Michael and Elites opinions on this stock.

Fundementals didn't change, numbers were good for the CC, heck everyone knew the news before it came out to begin with.

The pump and profit taking on the run are over is this still a value play and if not why?

I'm all for daytrading a stock as the market ebbs and flows, however if we find a stock worth holding on a fundemental basis shouldn't we hold a position in the stock and still trade it short term?

Great questions here boatguy.  Let me break it down:

Fundementals didn't change, numbers were good for the CC, heck everyone knew the news before it came out to begin with.

Part of the problem is that nothing new and exciting was gained from the CC.. people don't want expections met on a stock that has gained such a huge %.. they want to have excitement.  Simply for this a reason a stock will go down even if its solid.

The pump and profit taking on the run are over is this still a value play and if not why?

No one knows if the profit taking phase is over.  This company is a penny stock for a reason!  Never forget that.  This means that every statement they make needs to be doubted big-time.  The technicals lined up with their statements when we took a position.. now as far as the portfolios go we will wait for another safe entry.

I'm all for daytrading a stock as the market ebbs and flows, however if we find a stock worth holding on a fundemental basis shouldn't we hold a position in the stock and still trade it short term?

We did not day-trade this stock.  Timing wise what we did was swing-trade a trend.. the trend was: a run into a specified date(the CC).  Managing a portfolio with many followers means we have to be very creative with these penny stocks.

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

I do believe NMKT can eventually go higher but when we bought in the technical setup was safer.  Fundamentally it is still a value play but the penny stock status means I would not hold on the way down.  So we will be watching NMKT for a setup.