Quarterly comparisons of MC to revenue for the last 10 quarters.

2003
Q4 Rev= 1MIL Market Cap= 17mil

2004
Q1 Rev= 2,664 MC= 40+mil

Q2 Rev= 7,610 MC= 44+mil

Q3 Rev= 7,877 MC= 37+mil

Q4 Rev= 6,824 MC= 49+mil

Total Rev 2004 = 24,977mil Average MC 2004 = 43mil

2005
Q1 Rev= 10,187 MC= 50+mil

Q2 Rev= 10,419 MC= 42+mil

Q3 Rev= 14,211 MC= 41+mil

Q4 Rev= 15,320 MC= 40+mil

Total Rev 2005 = 50,137mil Average MC 2005 = 43mil

2006
Q1 Rev= 17,330 MC= 40+mil

Q2 Rev= 20,000? MC= 59+mil

Q3 Rev= 20,000+? MC= 48+mil


Total Rev 2006 = 70,000mil+?
Average MC to date for 2006 = 49mil


As you can see market cap has not grown very much in the last 3 years but revenue has increased dramatically. NMKT’s market cap has only grown 3x since the 4th quarter of 2003 but back then NMKT had less than 1 million in revenue.
Market cap has never been this low relative to revenue.

Notice how in Q1 05 market cap stays flat even though revenue almost doubled from Q4 2004? Also take a look at the drop in Q2 05 this was the quarter when NMKT was on the regulation SHO list because of Naked Short Sellers

Also notice how revenue doubled from 2004 to 2005 but market cap stayed the same at 43mil.

Sometime around Q3 of 2004 shorts started to take a major interest in NMKT.

All growth in market cap has been stunted since mid 2004.
I also don’t think the problem is NI as you can see below

Shrinking market cap as revenue and NI increase.

2005
Q1 Net Income $102 Rev=10,187 MC= 50+mil

Q2 Net Income $115 Rev=10,419 MC= 42+mil

Q3 Net Income $1,241 Rev= 14,211 MC= 41+mil

Q4 Net Income $1,451 Rev= 15,320 MC= 40+mil


As one can see Net Income increased quarter after quarter as did revenue but market cap went down! Incredible growth plus profit is not an easy thing to accomplish.

In Q1 of 2004 NMKT had revenue of 2.6mil.
Today Q2 of 2006 NMKT expects revenue of 20mil.
However Market cap has NOT grown since Q1 of 2004

NMKT has had 7 consecutive quarters of profit and revenue growth.

However Market Cap relative to sales has never been as low as it is now.

Revenue 2004 Q1 2.6Mil
Market Cap 2004 Q1 40MIL
Total rev 2004 = 24mil total mc 2004 = 43mil

Revenue 2006 Q2 20MIL
Market Cap 2006 48MIL
Total rev 2006 = 70mil total mc 2006 = 49mil

Profitable yearly revenue has already exceeded market cap.
At this rate Quarterly Revenue will also soon exceed Market Cap.