OMCC

Old Market Capital Corp ($OMCC): 21 Consecutive Insider Buys Despite Ongoing Losses

09/05/2025 20:54

Old Market Capital Corp ($OMCC) is a small-cap telecommunications services provider operating in Ohio, offering broadband internet, VoIP, and video services. The company, which rebranded from Nicholas Financial in September 2024, has been drawing investor attention due to remarkable insider activity patterns. The most striking aspect is the consistent insider buying behavior. From June 2024 to September 2025, all 21 insider transactions were purchases with zero sales. Notably, in December 2024, Director Adam Peterson purchased 89,835 shares for $538,506, while CEO Jeffrey Royal bought 31,500 shares for $189,000. These weren't token purchases but substantial investments, signaling strong management confidence in the company's future value. This pattern continued into 2025, with CFO Charles Krebs making frequent small purchases almost weekly from July through September, while Officer Mark Radabaugh made a significant single purchase of 14,688 shares for $95,325 in July. Such persistent and frequent buying strongly suggests insiders view the current stock price as undervalued and anticipate positive developments. Financially, $OMCC's greatest strength lies in its cash position. With a market cap of approximately $40.4 million and cash holdings of $22.03 million, the company holds 54% of its market value in cash – an exceptionally high level for a small-cap stock. This provides substantial downside protection and strategic flexibility during economic uncertainties. Additionally, the debt-to-equity ratio of just 8.73% indicates minimal leverage risk. However, profitability remains a challenge, with TTM revenues of $11.91 million against a net loss of $3.61 million. Yet the continued insider buying amid these losses suggests value or transformation potential not reflected in current metrics. Stock performance shows a decline from $6.74 in June 2024 to a low of $4.71 in May 2025, before recovering to current levels around $5.99. Interestingly, the stock has shown relative stability since the heavy insider buying in December 2024, suggesting these purchases may have provided price support. In the context of 2025's volatile small-cap market environment, cash-rich companies like $OMCC are gaining attention from analysts who note that financially sound small-caps can offer relative safety during uncertain times. Key upcoming catalysts include quarterly earnings releases and strategic clarity following the company rebrand. The telecommunications industry's 5G and fiber expansion could present new opportunities for regional players like $OMCC in Ohio. In an optimistic scenario, current losses represent temporary restructuring costs, and the substantial cash position could fund growth investments or acquisitions. The confident insider buying supports this possibility. The base case scenario suggests gradual recovery based on financial stability, though near-term profitability remains challenging. Risk factors include typical small-cap illiquidity, economic sensitivity, and intensifying competition in regional telecommunications markets. Overall, $OMCC presents a compelling case of a financially stable small-cap with strong insider confidence that may offer medium-term recovery potential for risk-tolerant investors willing to look beyond current operating losses.