Is Old Market Capital Corporation (OMCC) a Hidden Gem After Its Rebranding and Strategic Shift?

Old Market Capital Corporation (OMCC), formerly Nicholas Financial, Inc., has undergone a dramatic metamorphosis in 2025, shedding its legacy finance roots to emerge as a telecom-centric broadband provider. This rebranding, driven by the acquisition of Amplex Electric, Inc. in June 2024, marks a pivotal shift in the company's identity and strategic direction. But does this transformation signal a turnaround opportunity, or is OMCC merely a high-risk bet in a crowded market? Let's dissect the post-rebranding narrative through the lenses of strategic transformation, earnings performance, and insider activity to determine if OMCC could be a hidden gem for investors.

Strategic Transformation: From Finance to Fiber

OMCC's rebranding was not a superficial name change but a fundamental pivot to the broadband sector. By acquiring Amplex Electric, the company has positioned itself as a provider of high-speed fiber optic and fixed wireless services in Northwest and Northcentral Ohio. This move aligns with the growing demand for reliable internet infrastructure, particularly in underserved rural markets. The re-domestication from Canada to the U.S. and the ticker symbol change to OMCC (from NICK) underscore the company's commitment to this new identity.

However, the transition has come at a cost. One-time expenses of $1.7 million for re-domestication and $1.1 million for repurchasing shares from dissenting shareholders highlight the financial strain of restructuring. Yet, the integration of Amplex into core operations has already yielded tangible results: a significant expansion of fiber subscribers and infrastructure. This suggests that OMCC's long-term vision—geographic and operational diversification—could pay dividends if execution remains disciplined.

Earnings Performance: A Rocky Start

The first major earnings report post-rebranding, released on June 30, 2025, revealed a mixed bag. Revenue plummeted 34.7% year-over-year to $2.53 million, while net losses widened to $1.21 million—a 473.5% increase. Earnings per share (EPS) fell from a loss of $0.03 to $0.15, reflecting the challenges of transitioning from a finance model to a capital-intensive telecom business.

Yet, there are glimmers of hope. Wireless and fiber internet services contributed $1.656 million and $0.870 million to Q4 2025 revenue, respectively. CEO Charles Krebs has emphasized these segments as growth drivers, though they remain overshadowed by operating expenses of $4.373 million. The company's guidance for gradual profitability hinges on cost control, infrastructure optimization, and scaling its broadband offerings. While the path to profitability is uncertain, the strategic pivot to a sector with long-term growth potential cannot be ignored.

Insider Activity: A Vote of Confidence?

Insider transactions in Q2 2025 offer a compelling narrative. Charles Krebs, OMCC's CFO, executed multiple open-market purchases totaling $114.8K, while Mark R. Radabaugh, CEO of Amplex, acquired 14,688 shares for $95,325—boosting his ownership by 96.1%. These purchases, made with personal funds, suggest that key executives view OMCC's stock as undervalued. Notably, no insider sales were recorded during the quarter, reinforcing the sentiment that leadership remains bullish on the company's future.

Historically, insider buying has been a positive signal for OMCC. A strategy of purchasing shares on earnings days and holding for 30 days has yielded a modest 5% return over three years, albeit with quarterly volatility. While past performance does not guarantee future results, the consistency of insider confidence is a factor worth considering.

The Verdict: High-Risk, High-Reward Play

OMCC's rebranding and strategic shift present a classic case of a company reinventing itself in a high-growth sector. The broadband industry is poised for expansion, driven by demand for 5G, remote work, and digital equity initiatives. OMCC's focus on rural Ohio—a market with untapped potential—could position it as a regional leader if it executes effectively.

However, the financials remain a concern. Declining revenue, widening losses, and high operating expenses paint a picture of a company in transition. Investors must weigh the risks of operational inefficiencies and integration challenges against the potential rewards of a successful pivot.

For high-conviction investors, OMCC could be a speculative play if the following conditions are met:
1. Cost Discipline: The company must reduce operating expenses while scaling its broadband infrastructure.
2. Subscriber Growth: Sustained expansion of fiber and wireless subscribers will validate the strategic shift.
3. Insider Continuity: Continued insider buying and leadership stability will signal ongoing confidence.

Final Thoughts

Old Market Capital Corporation's rebranding is a bold bet on the future of broadband. While the earnings report raises red flags, the strategic alignment with a growing sector and insider confidence add layers of intrigue. This is not a stock for the faint of heart—it requires patience and a tolerance for volatility. For those willing to take the plunge, OMCC could either be a hidden gem or a cautionary tale. The next few quarters will be critical in determining which path the company takes.

Investment Advice: Consider a small, speculative position in OMCC for high-risk portfolios, with a focus on monitoring subscriber growth, cost trends, and insider activity. Set a strict stop-loss to mitigate downside risk. Long-term success hinges on the company's ability to execute its broadband vision without further financial strain.