I have been into a lot of depressed stocks. I would post on those message boards and hear a lot of the same arguments that I see here. There is one big difference though.
I have never seen so many down in the dump longs as NMKT has.
So much negativity, so many insults, so much nay saying, and this is all from the LONGS!
It seems like almost every single long here has turned on management and this company.
FOR SHAME.
I know most here are down I am down as well but I see a bright future and an undeservedly low share price.
That’s right I said an undeservedly low share price and market cap.
85% of all Stocks with 70mil in revenue have Market caps equal with revenue. Most trade higher than revenue.
Nmkt’s cheap market price is more the exception than the rule. Is NMKT really worse than 85% of all stocks with 70mil in revenue? Most have less profit or no profit and less growth prospects than NMKT.
It seems Most are looking for the next big uptick to just take their money out and run it would seem to never look back again.
Holy guacamole its depressing and a bit underserved.
Evidence of a capped Market Cap in NMKT? You decide.
The table below clearly shows that MC and share price relative to growth over the last two years have had not kept up with NMKT's revenue and Net Income escalation. Inversely Market Cap is shrinking relative to increased Net Income and revenue.
NMKT is about to offer multiple spin off dividends which should strengthen the bottom line of the parent and subsidiary company’s.
They will also provide value for the shareholder via this new equity stock dividend.
Still any rise in PPS quickly dissipates and it seems rather conspicuous that the MC has been held under 50mil for so long. Are we being naked shorted via multiple off shore accounts?
I don’t know why NMKT cannot sustain an increase over 50mil in MC. I do know NMKT has applied to the AMEX exchange, and it did so before it had a Share Price requirement. One of their (AMEX) listing requirements seems to be a 50million market cap. Current MC for NMKT 49,172,695
Perhaps a 50mil MC would allow NMKT to be grandfathered in with their old AMEX application…
NMKT has some serious full time bashers that work tirelessly on the message boards.
They put in considerable effort and time denouncing the company day and night 7 days a week. They have been doing this over two years.
Am I being overly paranoid here?
Marvel at our shrinking market cap as revenue and NI increase.
2005
Q1 Net Income $102 Rev=10.1m MC= 50+mil MC-5x rev
Q2 Net Income $115 Rev=10.4m MC= 42+mil MC-4x rev
Q3 Net Income $1,241 Rev= 14m MC= 41+mil MC-2.9X REV
Q4 Net Income $1,451 Rev= 15m MC= 40+mil MC-2.6X REV
I do not neglect the O/S increases they are represented in the table I created.
NMkT has doubled revenue and NI year over year over year.
NMKT Market Cap has not grown in almost 3 years! Are we not supposed to look forward when properly valuing a company? Are we not supposed to look to future growth prospects?
Q1 2004 2mil revenue Market cap 43 mil= 20x rev
Q2 2006 20mil revenue Market cap 48mil =2.5xrev
Perhaps the possibility of a dividend? Why is NMKT valued at what it did 3 years ago? The future looks good here as we will both receive a dividend and continue to see rapid future growth.
NMKT is currently on 3 continents and in 8 countries. They are positioned perfectly in South America and Asia to ride the crest of a wave of the two fastest growing economies on earth. I have no doubt that NMKT will continue to produce greater NI and Revenue in the next few years as it has done in the past.
Looking at these numbers below I do not see how or why anyone would think NMKT is currently overvalued or even trading at fair value. And importantly these numbers below do not take into consideration dividends or future growth prospects.
Price/Earnings (TTM)
NMKT
16.6x
Industry Average
40.23x
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Price/Sales (TTM)
NMKT
0.71x
Industry Average
6.15x
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Price/Book (MRQ)
NMKT
1.11x
Industry Average
6.50x
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EPS Growth (MRQ)
NMKT
189.16%
Industry Average
30.95%
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Revenue Growth (MRQ)
NMKT
70.10%
Industry Average
21.98%
--------------------------
Revenue Growth (TTM)
NMKT
76.24%
Industry Average
20.20%
