NewMarket Technology (fka NWMT)

[claymolly]

THIS GUY IS GOOD! HELLO SKEETER!BYE BYE VERGERS!

Do you remember China Crescent's (a subsidiary of NewMarket) recent acquisition of a subsidiary from China Radio Technology? That purchase was immediately touted as being responsible for $36M in new annual sales for China Crescent. This week we have news that China Crescent and Greenfield partner NuMobile have a formal letter of intent for a $160M sale of 10,000 units of an undisclosed wi-fi device to an unidentified Japanese customer.

Let's look a little more closely at this amazing subsidiary that NewMarket purchased.

At the time the acquisition was announced, I reported on this message board that there were no references to "China Radio Technology" anywhere on Google other than the repetitive news releases from NewMarket. I looked at dozens of pages of Google results for "China Radio Technology" and found only the NewMarket acquisition news. It seemed odd that a company, which was supposed to be a leader in wireless communications and whose subsidiary was worth $36M in annual sales, would have no web presence whatsoever.

Then a poster appeared on this board, called me an idiot, and posted a link to the company's website. It turned out that the company's name was not "China Radio Technology" but "Shenzhen Radio Technology." I now believe that that poster was connected with NewMarket management. In none of NWMT's press releases did they ever refer to the company as Shenzhen Radio Technology.

I think there is a reason why NewMarket never used the correct name for the parent company in its press releases. That is because Shenzhen Radio Technology was a tiny manufacturer of walkie-talkies and accessories. They weren't special walkie-talkies, just run-of-the-mill walkie-talkies. (According to alibaba.com, there are 4800 manufacturers of walkie-talkies in China.) Anyone doing an online search for "Shenzhen Radio Technology" would realize that a subsidiary of that company would not generate $36M a year. Anyone doing an online search for "China Radio Technology" would pull up rosy scenarios from NewMarket.

NewMarket was never particularly forthcoming in describing exactly what its newly purchased subsidiary did. But after the recently announced $160M letter of intent, I thought that Shenzhen Radio Technology was worth another look.

Here is what I found.
http://szrdo.manufacturer.globalsources....
"Are you looking for a professional and big two-way radio accessories supplier? Then turn to Shenzhen Hong Tai-fu Technology Co. Ltd (Formerly known as Shenzhen Radio Technology Co. Ltd)."

It turns out that the company no longer makes walkie-talkies, only accessories for walkie-talkies, hence the corporate name change. So now we can deduce what NewMarket bought from Shenzhen Radio Technology--its walkie-talkie manufacturing business. I also discovered that Shenzhen Hong Tai-fu Technology Co. has no export license, which makes me wonder how China Crescent is going to sell to this mysterious Japanese buyer.
http://szrdo.manufacturer.globalsources....

All in all, it seems fishy that tiny walkie-talkie manufacturer would be hired to produce 10,000 wi-fi devices, each costing $16,000 (in bulk).