OMCC

Old Market Capital ($OMCC) Posts Continued Losses Despite Management's Consecutive Large Purchases...$24M Cash Position Fuels Turnaround Expectations

07/24/2025 20:10

Old Market Capital Corp ($OMCC) is drawing investor attention despite posting current losses, primarily due to consistent and substantial insider buying by management. $OMCC is a small telecommunications services company providing broadband internet, VoIP, video services, wireless internet, and fiber internet services primarily in Northwest and North-central Ohio. Founded in 1985, the company rebranded from Nicholas Financial to its current name in September 2024, signaling a strategic transition. With approximately 82 full-time employees, the company maintains a market capitalization of around $42 million. The most notable development is the strong buying signal from management. On December 13, 2024, Director Adam Peterson purchased 73,000 shares for $438,000, while CEO Jeffrey Royal bought 31,500 shares for $189,000 on the same day. Peterson continued with additional consecutive purchases thereafter. More remarkably, CFO Charles Krebs has been consistently purchasing shares throughout July 2025 across multiple transactions. All insider transactions have been purchases only, demonstrating management's strong confidence in the company's prospects. This insider buying is particularly meaningful given the company's current financial situation. $OMCC recorded $9.37 million in revenue over the trailing twelve months but posted a net loss of $8.19 million, resulting in an earnings per share loss of $1.22. The operating margin stands at -54.97%, indicating current unprofitability. However, management's substantial purchases suggest confidence in a future turnaround. The company's financial foundation is actually quite solid. Cash holdings of $24.52 million represent more than half of the market capitalization, while the debt-to-equity ratio stands at just 7.15%, indicating high financial stability. This compares very favorably to industry peers like Nelnet (257%) or Encore Capital Group (465%). The strong cash position provides a buffer against operating losses and flexibility for future strategic investments or business expansion. Stock price movement has been interesting as well. Starting from $6.74 in June 2024, the stock declined to $4.71 in May 2025 but has since recovered gradually to the current level of $6.29. Trading within a 52-week range of $4.21 to $7.00, the stock shows relatively stable patterns with moderate volatility for a small-cap stock. The July U.S. market environment, which has shown increased interest in growth companies with high insider ownership, also works in favor of the stock. High insider ownership typically signals alignment between management and shareholder interests, which can serve as a trust signal for investors. However, there are caution factors to consider. The company continues to post operating losses, making the timing of profitability uncertain. Additionally, with average daily volume of approximately 5,163 shares, liquidity is limited, potentially creating entry and exit challenges for large investors. Limited analyst coverage also makes external validation and price target setting difficult. Key upcoming catalysts include the Q1 earnings report scheduled for August 1st. This will be an important checkpoint to verify whether management's consistent buying translates into actual business improvements. The strategic roadmap following the brand change may also be clarified. From an investment perspective, $OMCC presents both risks and opportunities. The strong cash position, low debt ratio, and most importantly, strong management confidence signals are positive factors. Conversely, continued losses and limited liquidity are cautionary elements. As a small telecommunications services company, investors should comprehensively consider its growth potential in niche markets alongside its appeal as a turnaround story when making investment decisions.