NewMarket Technology (fka NWMT)

[hdsstocks]

$NWMT serious DD yielding PPS of .02 per share:

NWMT next TRIPLE ZERO monster... IMO.

Not only does my DD uncover a PPS of .02 valuation of this company (quite an easy calculation) it also shows that new management is coming to take over NWMT soon and they are looking for strategic foreign investors to prepare for the sale of their subsidiaries. All this can mean is MORE shareholder value as the subsidiaries are sold. Lets say worst case NWMT dilutes 20 billion common shares (which they won't, no penny stocks do that):

40,000,000 / 20,000,000,000 = .002 per share

So even with FULL A/S dilution taking place this stock is still worth 1,000% of todays price!!!

Now, they won't dilute much if at all IMO, for the reasons highlighted alone.

IMO as the big boys pick up on the serious potential of this stock they will move in and this will be the next triple zero monster.

$NWMT balance sheet:

Highlights: Assets > 80,000,000
But the liabilities are < 40,000,000!

Shareholder equity of 40,000,000 then!

So whats 40,000,000/2,000,000,000 (the O/S)? = .02

CURRENT ASSETS

Cash and cash equivalents
$ 3,791,630 $ 4,004,106
Accounts receivable
42,945,488 32,290,112
Inventory
2,152,082 1,978,203
Prepaid expenses and other current assets
4,638,060 3,417,234
Total current assets
53,527,260 41,689,655

PROPERTY AND EQUIPMENT, NET
610,839 618,795

OTHER ASSETS

Notes receivable including accrued interest
6,163,765 6,039,239
Investment in unconsolidated subsidiares
2,006,445 2,551,447
Goodwill
20,966,352 20,966,352
Available for sale securities
33,680 60,624
Intangibles
2,738 2,201
Total other assets
29,172,980 29,619,863

Total assets
$ 83,311,079 $ 71,928,313

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Accounts payable
$ 21,004,137 $ 12,848,563
Accrued expenses and other liabilities
7,563,206 2,845,850
Customer deposits
390,454 266,919
Liabilities of discontinued operations
52,872 52,872
Short term debt
10,169,579 10,614,148
Total current liabilities
39,180,248 26,628,352

Long-term debt
222,945 386,414

Total liabilities
39,403,193 27,014,766

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8130121

Most recent press release here excerpt:


The Company is currently in discussions with several potential strategic investors. The possible investment transactions under consideration include supporting a continuation and expansion of the Company's current business model focused on systems integration services in foreign emerging markets, and alternatively, seeking the sale of the Company's subsidiaries operating in these foreign markets. Investment structures have only been discussed. No specific investment structure is yet under negotiation.

New management entering $NWMT soon:


NewMarket CEO Bruce Noller stated, "I believe that the strongest ingredient within the foundation of NewMarket is its foreign subsidiaries. Whether as a whole or in separate parts, the potential value of the subsidiaries has yet to be fully realized. While we are early in the process of determining either the continuation and or sale of existing operating subsidiaries, I am encouraged and enthusiastic about both the number of interested investors as well as the broad variety of potential investment and operational strategies that we may employ over the near and long term."

Management anticipates a strategic investment to include a change of control event. Fifty-one percent of the Company's voting power currently is under the control of the Company's Chairman, Philip Verges. In conjunction with a strategic investment, Mr. Verges expects to sell all or a majority of the fifty-one percent voting power currently under his control in addition to his anticipated resignation from his position as Chairman.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8203237

A subsidiary with $78 million in revenues 2010:

DALLAS, TX, Oct 27, 2011 (MARKETWIRE via COMTEX) -- China Crescent Enterprises, Inc. ("China Crescent" or the "Company") (PINKSHEETS: CCTR) (OTCQB: CCTR) today announced that it anticipates potential business strategy updates in light of a recent NewMarket Technology, Inc. ("NewMarket") (PINKSHEETS: NWMT) (OTCQB: NWMT) announcement on October 20, 2011. China Crescent is a majority-owned subsidiary of NewMarket.
On October 20, NewMarket announced that it is exploring new potential investment relationships and an associated change of control event. China Crescent anticipates that any such investment relationship or change of control event of NewMarket would also impact the Company and its business strategy. The entire announcement is available on NewMarket's website.

http://newmarkettechnology.com/newsreleases/news-20111020_1.htm

On October 21, 2011, NewMarket also released a Current Report on Form 8-K to report that it received shareholder approval for an amendment to NewMarket's Articles of Incorporation to increase the number of its authorized shares of common stock. The amendment is solely for the purpose of increasing the number of authorized shares of common stock for NewMarket and specifically does not include a reverse split of its issued and outstanding shares. The 8-K can be reviewed in its entirety at:

http://1.usa.gov/smFr5H

China Crescent has no plans at this time to either increase the number of its authorized shares of common stock or reverse split its issued and outstanding shares.

About China Crescent Enterprises, Inc. (www.chinacrescent.com) China Crescent is a systems integration service provider that markets technology outsourcing services in China including the sale and service of brand name technologies such as Microsoft, Cisco, IBM, HP and Dell. Following a strategic acquisition in 2009, the Company expanded its business line to include original design manufacturing (ODM). Headquartered in Dallas with operations in China, China Crescent reported $78 million in revenue in 2010. China Crescent is a subsidiary of NewMarket.

HIGHLY UNDERVALUED STOCK HERE PEOPLE-- IMO.