OMCC

Old Market Capital ($OMCC) Insiders Buy for 6 Months Straight: $27M Cash vs Annual Loss Dilemma

07/07/2025 22:12

Old Market Capital Corp ($OMCC) has captured investor attention as insiders have been consistently purchasing shares over the past six months. Particularly noteworthy is Director Adam Peterson's substantial buying spree, acquiring approximately $538,000 worth of company stock in December alone. Old Market Capital Corp, formerly Nicholas Financial until its September 2024 rebranding, is a Florida-based small-cap company providing broadband internet and communication services in Ohio regions. Through subsidiary Amplex Electric, the company offers VoIP and video services, focusing on regional telecommunications infrastructure. With a market cap of approximately $41.68 million, this 7-employee organization is pursuing a strategy to diversify its portfolio through acquisitions across various sectors. The most striking aspect is the continuous insider buying pattern. Director Adam Peterson purchased 73,000 shares for $438,000 on December 13, 2024, followed by additional purchases on December 17 and 18. CEO Jeffrey Royal also bought 31,500 shares for $189,000 on December 13, and as recently as July 2, 2025, Officer Mark Radabaugh made a small purchase, showing ongoing management confidence in the company. The insider trading pattern reveals all transactions are purchases, with Peterson's trades notably structured through Magnolia Capital Fund. This suggests strategic fund-level buying rather than simple personal investment. However, financial conditions present reasons for investor caution. The company reported annual revenue of $25.15 million against a net loss of $23.21 million for 2024, with negative operating cash flow of $1.90 million. ROA stands at -33.26% and ROE at -41.06%, indicating severely negative profitability metrics. Despite these challenges, $OMCC's investment appeal cannot be entirely dismissed. The company holds $27.13 million in cash, equivalent to 65% of its market cap, with a low debt ratio of 7%, providing financial stability. This offers capacity to continue business transformation and growth investments for several years ahead. Stock price movement shows trading around $5.80 currently, down from $6.70 in June 2024, representing about a 17% discount from the 52-week high of $7.00. Recent performance shows 10.57% gains over 5 days and 12.69% over one month, indicating short-term upward momentum. $OMCC's potential in the broadband services market lies in targeting Ohio's niche regional markets. Securing stable customer bases in areas often overlooked by major telecommunications companies could improve profitability. The pandemic-driven increase in remote work has also boosted regional broadband demand, a positive factor. Investors should watch the upcoming earnings announcement scheduled for August 14. The company projects fiscal 2025 revenue of approximately $9.37 million with net losses of $5.15 million, and whether loss margins can narrow alongside revenue growth will be crucial for understanding the rationale behind insider purchases. Risk factors include continued high losses, limited business scale, and low liquidity due to minimal trading volume. Average daily volume of just 4,775 shares could lead to significant price volatility during large transactions. In conclusion, $OMCC presents a mixed scenario with positive elements of continuous insider buying and strong cash position alongside negative factors of persistent losses. The stock may merit consideration for investors comfortable with small-cap investing and able to take a 2-3 year long-term perspective, but may not suit those seeking short-term gains or prioritizing stability.