DALLAS, TX--(Marketwire - September 17, 2009) - NewMarket Technology, Inc. (
PINKSHEETS:
NWMT)
today released a letter to shareholders from CEO Philip Verges. Mr. Verges
has written a personal letter to communicate NewMarket's strategy to align
share price and fundamental financial performance. The letter introduces
the primary aspects of the Company's strategic plan to be addressed in more
detail within an on-demand Webcast to be released later today. The letter
is included in its entirety below.
Dear Fellow Shareholders -
In July, I had the privilege of speaking at the United Nations (U.N.) in
New York on the potential for public micro equity investments in
entrepreneurial ventures to reduce poverty. It was inspiring to see the
attention paid by the U.N. to the role of economic reform in advancing
world peace. As the world digests the recent global economic crisis, I
believe organizations such as the U.N. can help bring to light a collective
understanding that the prevailing force in today's economy is now the small
business sector and no longer the global Fortune 500.
The practices of premier investment banks surrounding financial
transactions with ailing Fortune 500 firms have been the primary cause of
the global financial crisis. The iconic veil of brand name investment
banking integrity and prudent investment strategy has been lifted. As a
result, the return on investment (ROI) potential of the small business
sector has been given an opportunity to compete with the before
unquestionable prudence of investing in the Fortune 500. Nevertheless, the
public micro cap investment market that funds the now prevailing and
growing small business sector has its own image problems to overcome.
One strategy NewMarket has implemented to overcome the image problems
associated with public micro cap investments has been to win the support of
a prominent banking professional. Retired Major General Hugh G. Robinson
sits on the NewMarket Board of Directors. Amongst other credentials,
General Robinson is a former Chairman of the Dallas Federal Reserve.
General Robinson recently hosted a webcast on the Company's ongoing
developments. The following was taken from his introduction of the
webcast:
"The investments in emerging markets not only stand to deliver some of the
best high growth investment returns, but at the same time emerging market
investments also marry capitalism and social responsibility by bringing
much needed investment dollars to regions where such investments can
meaningfully reduce poverty. NewMarket is not only a promising young
company with the best yet to come, NewMarket is an example of a coming
economic reform with the potential to export the American dream of freedom
to pursue life, liberty, and happiness. In today's world it is economic
suppression not political suppression that imposes the greatest limitation
on personal liberty. I believe the recognition and corresponding growth of
a global small business economy will be the root of the next great social
advance."
NewMarket has harnessed the strengths of the micro cap investment market to
grow a start-up operation to approximately $100 million in annual revenue.
The bulk of NewMarket's operations creates and sustains jobs in emerging
markets and contributes to overcoming the economic suppression to which
General Robinson refers. The last hurdle NewMarket faces in its journey
from start-up to sustainable operation remains in the alignment of its
fundamental financial value with a sustainable share price that conveys a
long-term return on investment. In other words, NewMarket's share price
does not today represent the Company's sustainable operational performance
in comparison to similar national exchange listed companies.
Early this year we put into motion a plan to overcome this last hurdle to
deliver a sustainable share price that can deliver a long-term return on
investment in alignment with our ongoing fundamental financial success. As
the foundation of that plan, we have recapitalized the Company and
substantially reduced debt secured by potential convertibility into common
stock. We anticipate the final extinguishment of the remaining debt
secured by potential convertibility into common stock shortly. In a first
step to upgrade our current listing, the Company's financials are audited
and the corresponding current reports are on file with the Securities and
Exchange Commission (SEC).
With the foundation of the plan to align fundamental financial performance
and share price firmly in place, we are now building the next phase of the
plan on top of that foundation. In an on-demand Webcast to be released
later today, I will present a plan to issue a dividend, to list on the
OTCQX as well as the OTCBB and to independently list the Company's
subsidiary operations in South America similar to the current independent
listing of the Company's operations in China.
In conjunction with the independent listing of the Company's subsidiary
operations in South America, NewMarket has engaged in a letter of intent
(LOI) with Worldwide Strategies , Inc. (
OTCBB:
WWSG). In addition to an
independent listing, the intended transaction would also bring a key
addition to NewMarket's management team. The CEO of Worldwide, James
Samuels, is a senior executive with experience in graduating OTC companies
to a national exchange listing. Mr. Samuels could play an instrumental
role in NewMarket's plan to implement a national exchange listing in the
next phase of our comprehensive strategy to align fundamental financial
performance with a sustainable share price that conveys a long-term return
on investment. A preview of NewMarket's national exchange listing plan will
be included in the Webcast released later today.
While NewMarket works to conquer the last hurdle in its journey toward a
sustainable long-term return, we still manage to deliver numerous shorter
term ROI opportunities. Through our experience in the public micro cap
markets, we have learned that share price and fundamental financial
performance rarely coincide. We have correspondingly learned that a
recurring ROI opportunity for public micro cap shareholders can be achieved
by routinely taking profit from the periodic share price increases that
occur often in conjunction with milestone successes. We have frequently
discussed our "milestone investing" strategy to improve shareholders'
return on investment potential. Recently, to further enhance the
"milestone investing" potential for shareholders, we have implemented our
"Greenfield" program. We have already experienced our first milestone
successes through our new "Greenfield" program. I will further discuss our
"milestone investing" strategy and "Greenfield" program later in this
letter. Additionally, I will provide an even more detailed overview of the
program in the webcast later today to include a preview of upcoming
projects.
Few would argue that the publication of good news representing a milestone
success for a public micro-cap company has the potential to drive a
corresponding, though possibly temporary, increase in share price.
Unfortunately, many would agree that the veracity of the announced good
news milestone is frequently questionable. The reputation of good news to
increase a share price and the corresponding reputation of good news to be
of questionable authenticity defines the image issue I mentioned at the
onset of this letter.
Accordingly, I know some of you will skeptically consider the intentions
communicated in this letter to issue dividends and execute an upgraded
listing as perhaps less than genuine. Even with the caliber of endorsement
that General Robinson lends to the Company, some will still doubt the
intentions communicated in this letter. I would submit the best way to
judge a micro-cap company's integrity and capability for that matter, is to
learn as much about the management team as possible. Actually, I would
submit the best way to judge a big public company's integrity and
capability is also to learn as much about that management team as possible.
Educational institutions attended and previous work experiences don't tell
the whole story. Meet the management team as directly as possible. In
person if at all possible and through what they write in shareholder
letters and what they say in press, interviews or Webcasts.
To help NewMarket shareholders and perspective shareholders learn about the
founders and management team, we communicate frequently through as many
formats as possible. We publish a number of news releases and letters and
we conduct frequent Webcasts. We also get out and present publicly as
frequently as possible. Some of you may have even traveled with us on our
trade missions. We have one coming up to Africa at the end of October.
Please consider joining us.
To provide you some new insight into NewMarket management and to help you
in your consideration of the intentions we have communicated here in this
letter, I will share some background I have not communicated before on the
founding of NewMarket and the founders' expectations upon initially going
public.
In 1995, my mother lost an 18 month battle with cancer. I had just turned
30 years old at the time. She was only 56. All the reprimands, verbal
accolades and inspirational speeches my mother regularly distributed to my
siblings and me throughout her life seemed to be underlined and emphasized
with an exclamation point in my memory after her death. What seemed corny
at the time, in her passing, turned profound if not prophetic. "You are
all so smart and capable," she said, "if you could just figure out
something constructive to do together." I think we were beating the living
daylights out of each other at the time, but in 1997, a ghost was inspiring
us to launch a family business and NewMarket was born. She was an
influential spirit. Even our father, who had reached the peak of a 30-year
career, voluntarily exited to join us in 1997 well before his peak
opportunity had run its course.
In 2002, we reverse merged our 1997 private technology start-up into an
over-the-counter listed company. We were convinced at the time that the
over the counter market was just a miniature replica of the New York Stock
Exchange. We expected that as we grew the operation, the share price would
follow and in no time the Company would be listed on the New York Stock
Exchange. We had numerous institutional investors reinforcing our
expectations and offering financing to fund our meteoric growth. Then the
share price started to descend in spite of the continued operational
growth.
We tried to get our arms around the operational and share price performance
disconnect. With so much conventional market wisdom supporting the
miniature replica of the New York Stock Exchange expectation, anything but
New York Stock Exchange performance was aggravating. If operational
performance improves, then share price should correspondingly improve and
vice versa.
What we learned as we endeavored to understand the disconnect between
operational and share price performance is today the foundation of our
"milestone investing" strategy and our "Greenfield" program. NewMarket's
share price and operational performance disconnect is not unique or even
exceptional. On the over-the-counter market, a share price and operational
performance disconnect is routine. A long-term return on investment
strategy for an over-the-counter listed company, in our opinion, is
predicated upon an exit from the over-the-counter market. Nevertheless,
the over-the-counter market can provide tremendous returns on smaller and
shorter term investments by taking profits on the periodic increased share
price potential of a company's milestone successes.
As I mentioned above, NewMarket has consistently delivered ROI
opportunities over the last several years through its periodic successes
and corresponding "milestone" share price increases. Through our
"Greenfield" program we intend to continue delivering "milestone" return
opportunities. With the plan I have outlined here, and will further detail
in our Webcast later today, we intend to jump our last hurdle and deliver a
sustainable long-term return. Once we have validated our strategy to
transition from a "milestone" ROI opportunity into a sustainable long-term
ROI opportunity, we will then refine the strategy from lessons we will
undoubtedly learn along the way. Finally, we will set out to repeat the
transition strategy with those "Greenfield" projects that grow into a
sustainable long-term ROI opportunity.
Our perspective on the over-the-counter disconnect between share price and
operational performance and our corresponding "milestone investing"
strategy has been met with mixed reviews in the past. However, now that
brand name investment banking integrity and investment strategy prudence
has been brought into question, with increasing frequency, you can find
other sources describing the same disconnect. For instance, in the
September 7th issue of Forbes, in an article titled "The Hedge Fund
Shuffle," Nathan Vardi, a regular Forbes contributing writer, describes
penny stocks as "... shares in companies whose market values are completely
disconnected from fundamentals like earnings and book value..."
General Robinson's credentials and experience are of tremendous benefit to
the Company, but of even more value is his lifelong commitment to public
service. Some of you may be aware that in addition to a long career in the
Army and his service as the Chairman of the Dallas Federal Reserve, General
Robinson also served on President Johnson's staff. With General Robinson's
help, it is my hope that NewMarket's experience will be a positive case
study and example for other start-ups, early stage company's and high
growth entrepreneurial businesses as well as case study and example for
retail investors as they peruse investments in other public micro-cap
companies.
I am now closer to my mother's age when she battled cancer than I am to my
30th birthday when NewMarket was just becoming a gleam in my eye. Yet
still, the underlined and exclamation punctuated reprimands, verbal
accolades and inspirational speeches remain as an ongoing inspiration for
me and my siblings. Even my father is in the office every day. Currently
he is coordinating our upcoming African trade mission. The ghost that
inspired our launch remains a muse.
We are more committed than ever to NewMarket's long term success. Granted,
our personal success is irrevocably connected to NewMarket's success and
that is a strong motivation. However, in our ongoing communications with
shareholders and other public micro cap company managers, we recognize that
we have not been alone in our struggle to reconcile our original miniature
replica of the New York Stock Exchange expectation with our actual
experience and we are moved to make NewMarket a success and an example of
public micro cap investment expectation that can work -- for NewMarket
shareholders and all public micro cap investors.
Thank you for your time and consideration. I hope you will also take the
time to listen to our Webcast today.
Best Regards,
Philip
Philip Verges
CEO and Founder
NewMarket Technology, Inc.
Corporate Information and E-mail Updates
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Company, please visit
www.newmarkettechnology.com.
About NewMarket Technology, Inc. (
www.newmarkettechnology.com)
NewMarket is a reporting company with audited financial reports filed with
the SEC. NewMarket provides systems integration, technology infrastructure
services and emerging technology worldwide. NewMarket has a focus on
providing technology and support services to rapidly growing economies
where technology purchasing is on the rise. In addition to its base of
operations in North America, NewMarket has operations today in the growing
economies of China, Southeast Asia, Brazil and Northern Latin America. Last
year the Company reported over $40 million in revenue from Asia and over
$20 million in revenue from Latin America. Overall, NewMarket reported over
$95 million in revenue for 2008.
Across the globe, NewMarket is a Microsoft and Oracle partner, distributes
various computer hardware and peripherals from brand partners such as Dell,
HP, IBM, Cisco, Sony, Epson, Canon and Sanyo and is also an authorized
reseller of operating systems and various software from companies such as
Red Hat, Sybase, IBM, BEA, Veritas and others. Additionally, the Company
works with emerging technologies such as mobile computing, various security
and wireless broadband technologies.
NewMarket's rapid growth since 2002 has placed the Company on the Deloitte
Technology Fast 500 for 5 consecutive years. NewMarket was recognized as
the third fastest growing technology company in the United States in 2006
and the number one fastest growing technology company in North Texas for
two years in a row.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995
This press release contains forward-looking statements that involve risks
and uncertainties. The statements in this release are
forward-looking statements that are made pursuant to safe harbor provision
of the Private Securities Litigation Reform Act of 1995. Actual results,
events and performance could vary materially from those contemplated by
these
forward-looking statements. These statements involve known and unknown
risks and uncertainties, which may cause NewMarket's actual results in
future periods to differ materially from results expressed or implied by
forward-looking statements. These risks and uncertainties include, among
other things, product demand and market competition. You should
independently investigate and fully understand all risks before making
investment decisions.
Contact Information: Contact:
NewMarket Technology, Inc.
Investor Relations
214-722-3065
ir@newmarkettechnology.com