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DailyTrends.com Company of the Week: Newtek (NKBS)

Chris Lahiji
Chris Lahiji
Daily Trends.com
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Company Profile: Newtek (NKBS) is a direct distributor to the small and medium sized business market. I like to think of them as the support system or backbone for a lot of tiny business owners across the country.

They have:

Newtek Small Business Finance (Small Business Lending)

Newtek Merchant Solutions (Electronic Payment Processing)

CrystalTech Web Hosting (Web site services for small and medium sized businesses)

Newtek Insurance Agency (Customized insurance for small businesses)

Newtek Financial Info Systems (Outsourced digital bookkeeping)

Newtek Tax Services (Tax filing preparations and advisory service)

Trading Strategy: Simple. This stock is cheap, and I consider it a value play. Only reason why the company has fallen is because they are expanding their business lines and need to issue more shares. At $3.20, Newtek should earn over .40/share this year with a sharp increase in revenues. They should have over $2/share in cash on the balance sheet at the going rate. In my eyes, if the stock was sold right now, I am guessing management would not sell for less than $5 a share.

Chris Lahiji will be available to take your questions until Thursday, May 19. Please use the form below to submit your questions.

 
 
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