Based on 27,390,055 shares issued and outstanding, Next, Inc. (OTCBB: NXTI) is capitalized at $1,670,793.
For the Three Months Ended August 30, 2009, Next Inc. recorded sales revenue of $5,125,079 or revenue of $0.187/share.
Annualized, assuming the worst retail market in decades is behind us, Next Inc. will record sales revenue of ~$20M, or revenue of $0.73/share.
Even the small net income Next, Inc. reported for the period ended August 30, 2009, amounts to shareholder value and EPS. Realistically yet conservatively, Next Inc. is capable of earning $0.04/share in 2010.
A company operating in this niche market deserves a multiple anywhere between 10 & 15. Assuming the above materials, NXTI’s fair market value can range anywhere between $0.40/share to $0.60/share. Investing in the equity market concerns fulfilling one main objective: ROI. Investing in the equity market also concerns investing based on a going-forward basis and using logic to derive where a given market is valued.
In either case, NXTI’s market presents investors with potential for high return on investment. Assuming our valuation calculation, the low-end return is 556%; high-end return derives a gain of 884%.
By no means is anyone required to follow my model for evaluating Next, Inc. These notes are merely ideas. It is, however, required that each and every investor adopt a model by which they value their holdings and potential investment(s).
Note the institutional activity in NXTI’s market. I will further elaborate on this afterwards.
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DD from mailers: ************************ TimelessWealth.net: Discovering an Undervalued Market in Next, Inc. (NXTI).
With retailers primed for a boost heading into the holiday shopping season, Next, Inc. (OTCBB: NXTI) may stand to benefit from a rapidly recovering retail market and a rapidly growing e-commerce (online shopping) presence.
Next, Inc. reported their first profitable quarter in 2009 (Q3) amid a sluggish retail market. The company recorded earning $0.003/share, compared to a loss of ($0.04)/share for the prior period (Q2). Source: http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=6844847
Sales revenue for Q3 2009 exceeded $5,000,000, or revenue of $0.187/share. Based on 27,390,055 shares issued and outstanding, Next, Inc. (OTCBB: NXTI) is capitalized at an absurd $1.67M! In the event the market adjusts to a 1X quarterly (to be conservative exempt accounting for an annual period) sales multiple, an investment in NXTI could represent a return of 207%.
Insider ownership accounts for approximately 53% of Next Inc.’s total issued and outstanding shares, according to yahoo finance. In 2008 insiders purchased a combined 3,337,750 shares at an average price of $0.125/share. Source: http://finance.yahoo.com/q/it?s=NXTI.OB
Of the remaining 12.78M share float, institutional investors, such as the Fidelity ContraFund, who control 1.3M shares or approximately 10% of the float, reported ownership in this creative and innovative sales and marketing organization, on the company’s fiscal year-end (11/30). Source: http://www.mffais.com/nxti.pk
Institutional investment seems to imply that the risk/reward factor is well in favor of investors in Next, Inc. (OTCBB: NXTI).
Next, Inc. designs, develops, markets, and distributes licensed and branded promotional products and imprinted sportswear primarily through major college and university, motor sports and other major promotional key licensing agreements and the Company's own proprietary designs. NEXT is one of the dominant companies in the highly fragmented licensed promotional products and imprinted sportswear industries. Source: http://www.nextinc.net/next_inc_profile.php
The Company's licensed and proprietary products include:
- Approximately 200 licenses and agreements to distribute its Cadre AthleticTM, and Campus Traditions USATM line for most major colleges and universities in the U.S.;
- Licensing agreements with Chevrolet®, Pontiac®, Hummer®, Cadillac®, Buick®, Corvette C6®, Dodge®, GMC®, Chrysler®, Plymouth®, and Ford® for their respective "branded" logos for the RPM Sports USATM motor sports line, targeting the automotive dealership network and automotive venue markets;
- Proprietary designs including American BikerTM, American WildlifeTM, Ragtops SportswearTM , Campus Traditions USATM and Cadre AthleticTM, among others;
Staff at TimelessWealth.net continue to engage in due diligence activity to appropriate a fair market value to this overlooked sales and marketing organization. As bullish technical signals, for instance new 52-week high(s), continue to frequent Next, Inc.’s (OTCBB: NXTI) market, many investors will discover a successful, profitable company with sizable insider and institutional holdings, and will appreciate the price per share, as a result. Staff at TimelessWealth.net will dedicate a subsequent newsletter focusing specifically on the high-growth industry, recovering sector, and enthusiastic market data that concerns Next, Inc. We encourage our members to engage in their own due diligence activities and to contact our Staff if any questions, comments, or suggestions may arise at http://timelesswealth.net.
Sincerely, Edward Stevenson. Timeless Wealth Staff.
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******************************************** TimelessWealth.net: Next, Inc. (NXTI) expected to outperform estimates amid a spurring retail market; fantastic growth in e-commerce.
As consumers inaugurate the 2009 holiday shopping season, Next, Inc. (OTCBB: NXTI), a creative and innovative sales and marketing company, is expected to grow sales through a swiftly recovering retail market, and an expanding online presence. Internet analysts at comScore Inc. expect online retail revenue to rise 3 percent to $28.8 billion for the months of November and December. A reporter with Lansing State Journal wrote: “Much of the growth expected in online shopping - which now accounts for about 7 percent of overall retail sales, according to Forrester Research - is attributed to one factor in particular: Shopping online is a major time saver.” Source: http://www.lansingstatejournal.com/article/20091127/NEWS01/911270330/Online-reta ilers-hope-for-holiday-boost
With approximately 200 licenses and agreements to distribute their branded promotional products and imprinted sportswear to American Universities and Colleges, Next, Inc. (OTCBB: NXTI) has boasted growth to their high-margin, e-commerce sales division. Alexa.com (http://www.alexa.com/siteinfo/campustraditionsusa.com) reports the company’s Campus Traditions USA™ line (http://www.campustraditionsusa.com) has been attracting increasing traffic to their site in recent months. This data is suggestive of an increasing demand for an $18 billion/annum, sportswear and promotional products industry. Accordingly, this trend should be reflected in Next, Inc.’s Q4 financial statement.
In a report analyzing trends in e-commerce, comScore Inc. stated: “With more than 40 percent of all e-commerce transactions now including free shipping, it's clear that consumers respond favorably to this incentive and in many cases have come to expect it from retailers. The retailers who do not offer free shipping deals this holiday season may find themselves at a significant disadvantage versus those who do.” Source: http://www.internetfinancialnews.com/insiderreports/featured/ifn-2-20091106Posit iveEcommerceGrowthForecastForQ4.html
Next, Inc. Chief Executive Officer, Robert Budd, stated the following in a September ’09 Letter to Stockholders: "...the company's receivables, inventory and payables remain in good condition, along with our working capital and we're now entering the seasonally more robust part of the year in which we traditionally generate the vast majority of our sales." Source: http://www.nextinc.net/sept_stockholder_letter.pdf?ID=115254
Collectively, the aforementioned data, statistic and materials are suggestive of a market that is expected to outperform. Recent institutional interest in Next, Inc. has led Staff at TimelessWealth.net to further believe our conclusion to be accurate. In a market capitalized at a ludicrous $1.67M, with 27,390,055 shares issued and outstanding, and approximately 12.87M shares floating, Bernstein Sanford Fund reported on December 4th, 2009 a dramatic increase to their position for a total holding of 2,787,852 shares. Only a few days prior, on November 30th, 2009 Fidelity Contrafund, reported a new position in Next, Inc., to become the company’s second-largest institutional investor with 1,323,300 shares held. Source: http://www.mffais.com/nxti.pk
Our members are encouraged to engage in research and due diligence activity regarding Next, Inc. (OTCBB: NXTI). The company’s website (http://www.nextinc.net ) offers an excellent starting point for such purposes. Staff at TimelessWealth.net will continue to deliver updates regarding Next, Inc. during appropriate intervals and as material events arise. Please contact our Staff with any questions, comments, or suggestions at http://timelesswealth.net.Posts: 1580 | From: World | Registered: Jul 2006
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