NMKT: Eliminating Overhang
NewMarket Technology Inc (NMKT) is in the business of developing market entry technology products and services into early and mainstream technology products and services. The Company specializes in the
integration of emerging communication technologies and the marketing of the services enabled through those technologies. NMKT recently announced executing an agreement to acquire UniOne in Sao Paulo, Brazil with $14 million in profitable 2005 revenue. NewMarket had previously disclosed the planned acquisition, announcing UniOne's annual sales at approximately $11 million based on UniOne reporting $11 million in audited 2004 revenue, though UniOne has recently reported approximately a 25% increase to $14 million in profitable revenue through December 2005 (un-audited).
"This is a watershed event for New Market. Companies become public entities to raise capital, it is often the CEO's job to crate momentum and reduce overhang. This marks a turning point for us," noted CEO/Chaiman Phil Verges on the acquisition, "We intend to substantially reduce or eliminate all of our prefered debt within 30 days and we will disclose this in our upcoming annual report."
Recent volume in the stock could be indicating a technical turn to the upside, potentially reversing the slide that began in November 2004, which caused a retest of the alltime lows for NMKT. Important upside resistance for the stock looks to be in the $0.40 level. A close above this area and technicians will stand up and watch.
Regards,
Steve Kanaval
Director of Research
Knobias Inc
KNBS.OTC.BB
Ridgeland,MS
601-791-0032.w
KanavalX-AOLIM
