NewMarket Technology Inc. Announces Management Stock Purchase Plan; Senior Management and Founders to Purchase Stock on Open Market
01/30/2006 12:48
NewMarket Technology Inc. (OTCBB: NMKT) today announced management's plans to purchase the Company's common stock periodically on the open market. Philip Verges, the Company's Chief Executive Officer, sold the assets of a family business founded in 1997 to NewMarket in 2002 to control the largest block of NewMarket stock. Philip Verges and his partners in the family business have been the largest working capital investors in NewMarket since 2002. Due to the Company's current market valuation, Verges and his founding partners plan to purchase NewMarket common stock on the open market.
"I believe NewMarket common stock is substantially undervalued by almost any financial metric used by the investment world," said Philip Verges. "The Company trades at a Price-to-Sales ratio of less than one times revenue. Comparable technology service companies listed on the NASDAQ exchange with similar revenue and an average income per share not as favorable as NewMarket's have a Price-to-Sales ratio exceeding two times revenue. I believe NewMarket is in a transition from being recognized as a conceptual start-up to proving itself as a viable new breed of technology service provider. However, it is not unusual for the market to be initially skeptical and resistant to new ideas. I am confident NewMarket will eventually win market acceptance and achieve a market valuation by continuing its financial performance that realized a three year growth track record from $2 million to $50 million in profitable revenue."
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