OMCC

Old Market Capital ($OMCC) Insiders Make 19 Consecutive Purchases Over 18 Months, Strong $22M Cash Position Contrasts Profitability Challenges

08/21/2025 20:52

Old Market Capital Corporation ($OMCC) is a small-cap broadband services provider focused on Ohio markets, having rebranded from Nicholas Financial in September 2024 to concentrate on telecommunications services. The company provides internet, VoIP, and video services in Northwest and North-central Ohio through its subsidiary Amplex Electric, operating fiber internet services. With a market cap of approximately $37.8 million, this company has garnered investor attention due to management's confident buying spree. The most striking aspect is the consistent insider buying pattern over the past 18 months. From June 2024 to August 2025, all 19 recorded insider transactions were purchases with not a single sale, demonstrating strong management confidence in the company's prospects. CFO Charles Krebs has been particularly active, making small but frequent purchases almost monthly since September 2024, suggesting ongoing confidence rather than ceremonial buying. CEO Jeffrey Royal executed a significant purchase on December 13, 2024, buying 31,500 shares at $6.00 per share for a total of $189,000, paying a premium to then-current market prices. Director Adam Peterson made an even larger bet the same day, purchasing 73,000 shares for $438,000. These substantial commitments by executives signal conviction in the company's long-term value beyond simple stock price support. The company's financial structure is remarkably stable. Cash holdings of approximately $22.03 million contrast sharply with total debt of just $830,000, creating an extremely low leverage profile. Considering the $37.8 million market cap, cash alone represents 58% of market value, providing substantial runway for operations and potential acquisitions without additional capital raising needs. However, profitability challenges persist. Q1 2026 revenue reached $3.03 million but EPS remained negative at -$0.12. Trailing twelve-month revenue of $11.91 million generated a net loss of $3.61 million. Quarterly revenue has been highly volatile, dropping from $6.33 million in Q2 2024 to just $490,000 in Q1 2025 before recent recovery, indicating operational instability. Stock price movement reflects these mixed signals. Starting at $6.74 in June 2024, shares declined to $4.71 in May 2025 before recovering to current levels around $5.59 in August. While down approximately 14% year-to-date, the stock has rebounded over 18% from its lows, suggesting potential bottom formation. In the broadband services market, OMCC pursues a regional specialization strategy, focusing on Northwest and North-central Ohio to avoid direct competition with major telecommunications providers. This niche market approach enables stable customer base development but may limit growth potential. However, the company's acquisition strategy for related businesses, backed by substantial cash reserves, opens expansion possibilities. Investors should closely monitor operating cash flow improvement, as 2025 operating cash flow was negative $1.91 million. Profitability recovery alongside cash generation ability improvement remains critical. The upcoming Q2 earnings release will be pivotal for signs of revenue stabilization and cost efficiency improvements. Currently trading at 0.67-0.72 times book value, shares appear discounted relative to asset value. With a beta of 0.87 indicating lower volatility than market average and daily trading volume around 4,800 shares, liquidity remains limited. This small-cap characteristic means significant capital flows could substantially impact share price. In conclusion, OMCC combines strong financial stability and firm management confidence while pursuing business transformation, but must address profitability recovery challenges. Risk-tolerant investors may find appeal in undervalued asset value and niche market growth potential, while those seeking stable returns should look elsewhere.