NMKT has a lot more going on for it right now to be overly concerned about a R/S. Phil has come out stronly against a R/S even saying that talk of a R/S makes him sick. Even if NMKT does a R/S it would probably be bullish in NMKT's case. Most R/S are done by companies that are having financial problems. They are usually trying to maintain their listing on an exchange or reducing their shares to prepare for another round of financing. In most cases these companies are losing money. When a company that is losing money does a R/S their loss per share increases. Suppose a company with 100,000,000 shares and a $5 million loss does a 1/10 R/S. Before thje R/S this company has a loss of 5 cents per share and after the R/S they have a loss of 50 cents per share. It is very unusual for a company with NMKT's financials to do a reverse split. If they did a R/S their EPS would increase dramatically. I am forecasting a profit of $6-9 million for NMKT for 2006. Last quarter they made $1.5 million. This translates to $6 million for the year plus $1 million for Unione. That comes to $7 million with no allowance for organic growth. If NMKT did a 1/5 R/S they would have an EPS of between .20 and .30 based on my profit forecast and 150M shares outstanding.. IMHO this would mean a stock price of between $5 and $9 after the R/S. Personally, I believe a R/S is highly unlikely, but even if one came it would help their stock. We must keep in mind that NMKT is a totally different company than it was one year ago. One year ago NMKT was a company with $25 million in revenue, just barely reaching profitability, no CFO, three board members, an SB company that filed late with new auditors, no China business, no Unione and facing the issuance of 50 million new shares in the upcoming year. Now NMKT is a company with $50 million in revenue, highly profitable, a CFO, five board members including a former regional Federal Reserve Board Chairman, no longer an SB, filed on time, $28 million in China business, Unione closed, bringing an end to the issuance of new common shares in the near future, several subsidiaries have applied for separate stock listings, $20 million in new contracts announced in the last month, an AMEX listing likely soon and the first stock dividend announcement likely soon. Talk about some changes in a year's time. Those that are judging NMKT on its past and what it was are making a huge mistake. This company is nothing like what it was one year ago. Those that throw the baby out with the bath water will have huge regrets down the road. How would you like to have sold MSFT in its early stages because it had a few bumps getting started?
