NMKT market cap is now $50 million with 128M shares outstanding compared to $30 million in early January when the OS was 105M and the PPS was .27. Thats not a bad increase for three months. Regarding the issuing of new shares let me say this about that. Everybody, including Phil, knows that the issuing of new shares has decimated NMKT share price. When Phil started this company he had to borrow money to make aquisitions to carry out his business plan. He knew he couldn't repay the money in cash so he had to issue convertible preferreds. Phil believed the stock would go higher and that when the preferreds got converted he wouldn't need to issue that many shares. As we all know, it didn't work out that way. Phil has had to issue a lot more shares than he had hoped. There is nothing that anybody can do about that now, It is a done deal. We can only judge NMKT as an investment based on where it is now. Do we want to own a company with about 150M shares outstanding with 2007 revenues of $100 million and net profit of around $9 million for .385?That is the question. BTW, we likely will also own shares in NMKT Latin America, Xiptel, DFTS and who knows what else by the end of the year. Phil has told us that he is no longer issuing shares to make aquisitions. We know that Unione was done for cash. There is no indication that Phil has issued any new shares for anything recently. If Phil was issuing more new shares the fully diluted count would increase. The fully diluted count did increase by about 10M in the 10K, but I believe that was due to the share price drop not the issuing of new shares. Some people want to be angry at Phil for something that was going on in 2003,2004 and 2005 that can't be helped now. They want to throw the baby out with the bath water because mistakes were made in the early formation of this company. The fact that only 15M shares remain to be converted is very encouraging to me. It means we are nearing the end of this conversion process. I don't want to see too many shares converted to subsidiaries because that will reduce our stock dividends by that much. The biggest single factor to remember is that Phil and his family own 23M shares of NMKT common. Does anybody really believe that Phil is irresponsibly issuing new shares now so that he can dilute and destroy the value of his 23M shares? I am convinced that Phil is doing everything possible to fix this situation. Those 23M shares are by far our greatest assurance of that. I just can't see being angry over something that happened two or three years ago, but isn't happening now. This whole process should be over within the next forty five days. BTW, I checked with IR and they said the CFO says that was the last filing for NMKT as an SB and filing that report as an SB will not delay the AMEX application. Have a great weekend.
