OMCC

Old Market Capital ($OMCC) CFO Buys Stock Weekly for 3 Months... Backed by 55% Revenue Surge

09/11/2025 20:13

Insiders at Old Market Capital Corporation ($OMCC) have been consistently purchasing company stock throughout this year, drawing attention from investors. Notably, CFO Charles Krebs has been buying shares almost weekly from July through September, signaling strong management confidence in the company's future prospects. Old Market Capital, formerly Nicholas Financial Inc. until its September 2024 rebranding, is a small-cap company operating broadband internet and VoIP services in Ohio through its subsidiary Amplex Electric Inc. Founded in 1985 with 82 employees, the company is transitioning from traditional financial services to telecommunications infrastructure business. The most striking aspect is the consistent insider buying pattern. Examining insider transactions from June 2024 to present, every single trade has been a purchase without exception. Director Adam Peterson bought over 89,000 shares in December 2024 alone, while CEO Jeffrey Royal purchased 31,500 shares at $6.00 during the same period. CFO Krebs has been particularly active, making small but consistent weekly purchases since July, indicating sustained confidence rather than one-time investment. This insider buying becomes more significant when considering the company's financial position. OMCC's 2025 revenue surged 55% to $9.37 million from $6.04 million the previous year, though the company still posted a $5.15 million net loss. However, the company holds $22.03 million in cash against only $830,000 in debt – a 26-to-1 ratio. With debt ratios of 3-9%, well below industry averages, OMCC has ample financial flexibility for business expansion without funding pressures. The temporary losses during the broadband transition appear within expected parameters. Telecommunications infrastructure requires substantial upfront investment, and the rapid revenue growth already validates the business model's potential. Moreover, considering Ohio's growing broadband demand and the broader 5G and fiber internet expansion trends, future growth prospects remain highly positive. Stock price volatility has been considerable. Starting at $6.74 in June 2024, shares dropped to $4.71 in May 2025 but currently trade around $5.30. While price-to-earnings ratios are incalculable due to negative earnings, the price-to-book ratio of 0.68-0.70 suggests the stock trades below book value, indicating undervaluation. With growing September market interest in small-cap stocks, OMCC could be classified as an 'undiscovered gem.' Particularly mentioned alongside regional banks as an 'undervalued small-cap,' the company combines solid financial structure with growth potential. Investors should note certain risks. Daily average volume of only 3,393 shares limits liquidity, potentially causing significant price swings on large trades. Additionally, the unclear path to profitability may not suit short-term investors. Key catalysts to watch include quarterly earnings releases and broadband expansion progress. Continued revenue growth with margin improvement signs would likely boost the stock positively. Particularly important is whether support forms around the $5-6 range where insiders have been actively buying. Management's consistent share purchases clearly send positive signals. However, investors should adequately consider potential volatility during the company's transformation and approach from a medium to long-term perspective.