Here is what I think NMKT should do…
ALL AT ONCE:
Spin-off NMKT-China to the OTCBB, convert some of the outstanding preferred shares to NMKT-C common, issue a NMKT-C property dividend to NMKT shareholders and retain a percentage of ownership.
Spin-off Xiptel to the OTCBB, convert some of the outstanding preferred shares to XIPTEL common, issue a XIPTEL property dividend to NMKT shareholders and retain a percentage of ownership.
Reverse split NMKT, convert any remaining preferred to common and move to the AMEX.
Benefits of the above:
Shareholders that stick with NMKT through the reorganization will emerge with shares of THREE companies; NMKT-China, Xiptel, and NMKT.
All three companies would be debt-free with NO overhanging convertibles.
NMKT would be on a better exchange with MOST of its EARNINGS in tact (remember that in ’05 the Systems Integration business generated most of the profits). Revenues could conceivably still grow 15% YOY even with the subsidiaries spun-out and earnings would be terrific. NMKT would still have some incubator companies for development and spin-out/dividends and would actively seek out others using cash and ‘smarter’ terms.
NMKT-C and Xiptel would be HIGH-growth OTCBB companies. NMKT shareholders would benefit directly through ownership of their dividend shares and indirectly through NMKT’s retained partial ownership of the spun-out companies.
