The Microcap Speculator submits: NewMarket Technology (ticker: NMKT) has put in quite a showing over the past week. As a shareholder, I am enjoying the turnaround.
However, one issue continues to concern me. The company seems to be stepping back from plans to upgrade its listing from the OTC BB to the Amex or Nasdaq Smallcap (now Nasdaq Capital Markets). In this December 2005 Letter to Shareholders, CEO Phil Verges wrote that:
NewMarket will also upgrade its current equity environment by:
1) Achieving a listing on an exchange that attracts more institutional investors
2) Pursuing institutional shareholder interest after this listing
3) Obtaining financing for growth leveraged on financial fundamentals and moving away from equity only financing
(my emphasis added).
Recent press releases suggest a different goal -- to reform the OTC BB itself. For example, recently appointed board member Hugh G. Robinson explained:
I am also an advocate of NewMarket's initiative to improve the integrity of the OTCBB and I believe I can help to further that initiative. The OTCBB can be a first rate market for early development stage companies both in the United States and abroad. An enhanced and more regulated OTCBB can facilitate the export of U.S. financial products to developing economies around the world and, in so doing, help to offset future trade imbalances. NewMarket is blazing a trail for the global micro cap market place and a substantial U.S. export opportunity.
Sure sounds like the company has resigned itself to staying on the bulletin board. I hope I am wrong -- NewMarket Technology is an exciting company with strong revenues and growth opportunities. The company and its shareholders deserve a listing on a national exchange.
UPDATE: Reader Mo T. suggests that NMKT may still seek a national listing, but that subsidiaries spun off to shareholders (Xiptel, etc.) will trade on the OTC BB. I will try to get clarification from the company.
DISCLOSURE: I am long NMKT.OB. Not a recommendation to buy or sell any security. For informational and educational purposes only.
NMKT 1-Yr Price Performance: