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$NXMR - Capitalizing on Oil & Water in the Permian Basin

OTC:NXMR   NextMart, Inc
After establishing itself in the crypto sphere, Nextmart Inc. (OTC: NXMR) has been expanding into the lucrative oil industry through its acquisitions of Emco and Defenders Contracting. With Emco operating in the rich oil field of the Permian Basin, NXMR is exploring additional acquisition opportunities in this area. Recently, it acquired water rights in the Permian Basin which is witnessing increased oil and gas activity. Now anticipation is building for the release of NXMR’s promised announcements this week as well as an update on its audit and share cancellation. In light of this, NXMR could be one of the penny stocks to buy this week.

NXMR Fundamental Analysis
NXMR historically operated in the art marketing industry before becoming inactive but has been gaining momentum after announcing its merger in the crypto mining industry. With a total comprehensive loss of $74 thousand on the books, NXMR became current with the OTC Markets in November under its sole officer – Kathryn Gavin. To keep its shareholders and OTC investors up to date, the company purchased Level 2 real time quotes for its OTC Markets profile.

After working with Gavin as a business consultant for the company, William Bouyea was appointed CEO thanks to his management and brand growth expertise. Bouyea specializes in identifying and negotiating potential business targets which has made investors bullish on the company’s ability to expand through acquisitions.

On this note, NXMR’s new CEO stated that it’s an exciting challenge to take over the “revenue driven enterprise” and that following the acquisition NXMR will “not only increase the revenues, but also expand the business operations of each in areas not thought of by the previous ownership.”

He added that the company is currently working to enter an “up and coming industry” through the formation of a new subsidiary. As a company that’s actively taking advantage of new business opportunities, NXMR could be exploring possibilities related to the metaverse or other lucrative sectors.

Till now, the company only announced the sector it is venturing in, but its management has promised to release more details this week with the launch of its website. Investors are bullish on the company’s progress since the CEO has previously stated that “by closing this first crypto mining transaction, we plan to move very quickly by acquiring other related assets on a regular basis”. This means, once this merger is complete, NXMR will have numerous catalysts driving growth ahead of it.

To prepare for this, the company is also moving to a new office and will be updating its location soon. Considering its entrance into the crypto mining market, the potential revenue streams, and future acquisitions, NXMR could prove to be one of the best penny stocks to buy ahead of the merger. Based on the company’s latest announcement, the merger and new site will be complete within two days and is in negotiations with two companies “with real assets” to integrate with NXMR.

Since its initial share reduction in 2021, the company’s share structure remains unchanged. With an AS of 750 million and an OS of 374 million – of which only 43 million shares are restricted – NXMR has a low float of 41 million. The company assured its shareholders it has no plans for dilution and announced its share structure will remain unchanged for at least a year – a bullish sign for the company’s long-term shareholders.

Crypto Market
As of January 18th, NXMR announced its official entry into the crypto market as it acquires the necessary rigs to mine Ethereum . Bouyea highlighted the company’s efforts to penetrate the market as it continues “buying nodes from established mining entities that have actual success in crypto coins such as Gala, Green, and Liberty.”

To position itself as a leader in this growing market, NXMR has been raising the capital necessary to start mining Ethereum . To prepare for mining to start by Q2 2022, the company is finalizing the purchase of a significant number of revenue-producing nodes from a large crypto mining company.

According to NXMR’s CEO, the crypto market is only one of the several market segments the company is currently targeting. Moving forward, the company is adopting an aggressive acquisition strategy of mature, asset heavy operational companies that enjoy solid revenue growth and good performance. With this in mind, Bouyea assured investors the company “will be making several announcements in the short term as these negotiations come to fruition.”

Emco Acquisition
Delivering on its promises, the company recently acquired Emco – an established oil services company with top line revenue of over $45 million. Bouyea believes Emco is the “perfect fit” for NXMR’s business direction moving forward. With a solid client portfolio of over 68 prominent oilfield companies as well as over $4 million in different oilfield service equipment assets, Emco could solidify the company’s place in this industry.

Bouyea is bullish the company’s efforts to secure capital could allow it to “grow Emco into one of the biggest oilfield service businesses in the Permian Basin”. As oil companies continue to ramp up production, add more rigs and turn wells back on, there is increasing demand for Emco’s oilfield services. NXMR intends to capitalize on this increase in demand while growing its client base significantly.

Through its official twitter , NXMR announced it has signed a memorandum of understanding with plans to sign the contract by EOM . This new deal is expected to bring 10 trucks, assets, and potentially $10 million in sales. In light of these upcoming catalysts, investors are bullish that a PR or an 8-K could send this low float stock on a run to break its resistance – possibly making NXMR one of the best penny stocks to buy right now.

Defender Acquisition
Following its acquisition of Emco, NXMR has expanded its assets in the oil industry with the acquisition of Defender Contracting. Pursuant to the terms of this deal, NXMR acquired all of Defender’s operational assets, book of oil field businesses, as well as Defender’s workforce. As the company is looking to grow Emco more, NXMR added these assets to its main subsidiary.

At the same time, NXMR appointed Defender’s founder Mark McKenzie as Emco’s president. In this way, NXMR could utilize McKenzie’s network of contacts in the Permian Basin to identify new acquisition opportunities and expand Emco’s reach in this lucrative oil field. With this in mind, Bouyea expects Emco “to expand by acquisition, both horizontally as well as vertically, at a healthy clip over the coming months”. Given that the oil sector is heating up due to rising prices, NXMR has the potential to witness major growth as it continues expanding in this sector.

Service Location
In the meantime, NXMR’s subsidiary – Emco – has opened an eight-bay commercial truck and trailer service location in Carlsbad, New Mexico. The service location will provide maintenance to not only NXMR’s fleet but other oilfield trucking companies operating in the basin as well. NXMR is exploring opportunities for expansion from this location both organically and through acquisition of other service centers in the area.

NXMR has recognized a growing need for oilfield truck and trailer service centers in the Permian Basin. Especially since there are few service centers which provide third-party fleet mechanical services there. With forecasts for drilling and production increasing in the next few years for this area, NXMR could be well positioned to provide mechanical, welding, truck, trailer, and tire services to the current and future oilfield trucking companies in the Permian Basin.

Shell Removal
In light of the company’s acquisitions, NXMR no longer meets the definition of a shell company which led to the removal of its shell status from its OTC Markets profile. Now that NXMR is no longer a shell, Bouyea stated that the management is “going to focus on getting a Form 15c2-11 filed so our stock qualifies for proprietary broker-dealer quotation”. If this form is approved, market makers will be allowed to quote NXMR stock which could tighten the bid/ask spread – lowering the stock’s volatility . Based on the management’s focus on providing value to shareholders, NXMR could be emerging as one of the best penny stocks to buy.

Upcoming Deals
With this in mind, NXMR gained investors’ interest recently after sharing the closing of a deal which is expected to be announced this week. Moreover, NXMR is working to close 2 other deals which the company expects to close by next week.

While the company has hit a few delays, NXMR has promised updates on its “new business and new lines of revenue”. Since the company had shared in March that it was looking at another trucking and heavy hauling company in Texas this could be one of the deals being discussed. Many believe that due to the value of the assets these deals bring to the company, NXMR stock could be one the best penny stocks to buy.

Water Rights Acquisition
Meanwhile, NXMR’s subsidiary EMCO launched an acquisition program for more water rights in New Mexico to increase the capacity of its water stations in the Permian Basin. EMCO already provides services to more than 60 clients in the Permian Basin including oil giants XTO , Chevron , Occidental, as well as other independent public oil companies. With this in mind, oil prices’ volatility has led to increased oil and gas activity in the Permian Basin as these companies are looking to increase their production. Based on this, EMCO has the potential to realize more revenues by attracting new clients.

Considering this increase in oil and gas activity, EMCO expects its clients to increase their water usage by 100% to cover the increase in oil and gas drilling and production. On that note, EMCO has been charging transportation fees for transporting third-party water and has generated more than $40 million in revenues since 2018. Now that the company has its own water stations, EMCO could generate much higher revenues by charging for the water and transportation. Given that half the drilling rigs in the US are stationed in the Permian Basin, NXMR could be well-positioned to realize record revenues in 2022 and beyond. With the company planning to acquire more water stations, NXMR could be one of the penny stocks to buy in anticipation of more announcements.

Updates
As for its other deals, NXMR promised to announce the second deal on Monday and the third on Friday. However, NXMR was unable to announce the second deal on time since markets were closed on Monday. Despite this, NXMR shared that the second deal was closed but it is currently waiting for the final pieces of the deal before releasing PR. With this in mind, investors are anticipating back to back PRs in addition to an update on the company’s audit and share cancellation. Based on these upcoming catalysts, many investors are bullish NXMR is one of the penny stocks to buy this week especially as speculation mounts for the size of the deals.

Share Reduction
Meanwhile, NXMR has reduced its AS from 750 million to 500 million to make itself more attractive to new investors and future acquisitions. As the company is looking to set an anti-dilutive, pro-investors structure, NXMR is confident it can pursue its acquisition targets using its unissued shares.

On top of that, NXMR has canceled over 305.8 million outstanding shares which were previously issued in 2010 for the acquisition of China Internet Broadcasting. Since CIB defaulted under the obligations of the agreement, NXMR was able to cancel these shares thanks to CIB’s breach of contract. After successfully reducing its OS thanks to this, NXMR has begun analyzing several past share issuances and expects to be able to cancel more shares in the future.

It appears that the company is still working on the additional cancellation of 270 million shares which would bring NXMR’s OS under 100 million. Investors are eagerly anticipating updates on this matter as this share reduction could make NXMR one of the more attractive penny stocks to buy in the OTC due to its share structure.

Uplisting
Given the company’s efforts for growth and increasing shareholders’ value, NXMR hired an auditing firm to work on the company’s financials for the past 2 years. After the completion of this audit, NXMR would become an SEC reporting company – allowing it to uplist to the OTCQB later this year. The company plans on releasing an update on the status of its audit this week as well which when combined with its other announcements could make NXMR one of the penny stocks to buy now in case its news causes it take off.

NXMR Financials
According to its latest quarterly report, NXMR has $2 million in total assets. However, the company has a negative cash balance of $996.8 thousand which could be the result of NXMR’s acquisition of Emco and Defenders Contracting. With this in mind, NXMR has $4.6 million in total liabilities due to its expenses related to accounts payable and taxes payable. In terms of revenues, NXMR reported $1.5 million and has $319 thousand in operating costs. Despite this, NXMR reported a net loss of $263.9 thousand mainly due to other expenses.

Technical Analysis
Currently trading at $.0363, NXMR has a support near .03. The stock is pushing against a weak resistance at .039 and has resistances at .0499, .0549, .0691, and .0935. As the company expects to release a series of updates this week, bullish investors believe NXMR could be one of the penny stocks to buy this week. The stock is currently trading above the 50 and 200 MAs, once news is released NXMR could break through its resistance at .0499 and run higher considering the recent liquidity flowing back into the OTC markets.

Accumulation has been trending upwards and the MACD is bullish to the upside. Meanwhile, the RSI is holding at 50. With the news expected any day, it appears that NXMR’s chart is primed for a run. As is, NXMR has an AS of 500 million, an OS of 355 million, and a low float of 41.3 million.

NXMR Stock Forecast
NXMR’s shareholders have confidence in the company’s growth potential. Given the company’s expansion in the lucrative oil industry, investors are bullish on NXMR’s chances for major financial growth this year. With the company’s subsidiary acquiring water rights in the Permian Basin, NXMR could be positioned to increase its revenues significantly since it already offers services to more than 60 clients there. Meanwhile, the upcoming announcements and the update on the audit and share cancellation are catalysts to watch in the short-term. Considering the potential for these upcoming catalysts to trigger a run, NXMR could be one of the best penny stocks to buy this week.