OTC gem in disguise: Next Inc. (OTC BB: NXTI)

At PennyStockHaven.com we are always looking for undiscovered investment opportunities in the OTC market. If you're an experienced OTC market investor you probably know that it isn't that easy of a task. With more than 50,000 securities registered to this market tier, the process can be intimidating!
Take for instance those notorious for trading high volume. They are typically very well known and follow a "Rinse and Repeat" pattern that only hurts your investment. The names change but the game is all the same. These companies will engineer a new 'business plan' and flood press wires with news on ridiculous subjects. Each and every time, their releases consist purely of forward-looking statements that say what the company is planning to do, and avoid how the company hasn't actually done anything in the past or in the present. Remember that their motive is to raise as much capital as possible. Capital? That's your money in their pocket. It's not going towards the development of a business model. There is no business model. And more often than not, the "Rinse and Repeat" pattern ends with broken promises, misleading statements, injured investors. 'Injury' meaning financial trauma - financial trauma meaning the money you invested is no more. Nada. Gone.
So what's left for investors? Typically another new 'business' model (new look to the same old scam), perhaps a corporate name change (hmmm...the price of gold is doing very well, perhaps we should form a new division for mining and gold exploration, etc.) and quite often a reverse stock-split or a generous increase in the number of shares authorized for issuance (that is, shares available for sale to inexperienced, perhaps ignorant, investors). Hence, we are now familiar with the notorious "Rinse and Repeat" pattern.

Once in a blue moon investors come across a true value play in the OTC market. PennyStockHaven.com believes that Next Inc. (OTC BB: NXTI) is one of those. Read on to find out why we're excited about NXTI. We're not kidding when we say it is a rare GEM.

Next Inc. has been in the retail market for 15 years (long-term commitment, dedication), has 80 full-time employees and revenues of $15M per annum! Have you seen or heard of anything close to or at least similar to NXTI listed on the OTC? Probably not! We've been investing for a little under a decade and we've yet to come across another gem like this. Just imagine. This company has a small market cap at $1.3M compared with $15M in revenues for the last year!

Would you like to verify our stats with a 'hard copy' (the original source)? See NXTI's Quarterly Report (10-Q) released on April 14th/2010. Significant improvements are seen throughout! There is oddly familiar presence to this financial report, almost as if we are studying a NASDAQ or AMEX listed company. Take the time to go through the company's financials and discover the value we see for yourself.

I. Management

Next Inc. senior executive management team, lead by Mr. Robert Budd, CEO, have collectively built, run and sold numerous other successful ventures (prior to NEXT) in other industries as well as the licensed imprinted and promotional products industry. Senior management is committed to long-term shareholder value with sizeable insider holdings in the company's shares. Did you know that collectively, two of NXTI's directors hold more than 30% of the common stock of the Company?!

II. Business Model

Next Inc. is a creative and innovative sales and marketing organization that designs, develops, embellishes, markets, and distributes licensed and branded imprinted sportswear primarily through key licensing agreements as well as Company's own proprietary brands. Next's product offerings include sportswear branded with its own proprietary designs, which include American Biker ® , American Wildlife ® , Ragtops Sportswear ™ , Campus Traditions USA ® , Class Threads ™ and Cadre Athletic ® . Next Inc. distributes its licensed and proprietary products pursuant to various arrangements, including the following:

•Approximately 200 licenses and agreements to distribute our Cadre Athletic®, and Campus Traditions USA® line for most major colleges and universities in the United States; and
•Licensing and distribution agreements with GRITS (Girls Raised In The South) and Chuck E. Cheese.

III. Growth potential

The Next, Inc. is one of the larger companies in the highly fragmented licensed imprinted sportswear industry which generates approximately $18 billion in revenue on an annual basis. The Company has implemented its strategy of "Creating Retail Programs that Exceed Sales Expectations" to meet its customers' key requirements including: art design and development, manufacturing (for imprinted and embroidered sportswear), sourcing (for distributed products), warehousing and fulfillment. The Next, Inc. has developed a diverse distribution network, ranging from national, large regional, and specialty retail chains, corporate accounts, college book stores, motor sports, souvenir and gift shops, and golf shops. Next Inc. has expanded its distribution to include e-commerce through which a significant amount of the Company's most popular licensed products is marketed. The most significant are http://www.americanbiker.net, http://www.rpmsportsusa.com and http://www.campustraditionsusa.com

IV. Capitalization Prospect

Ridiculously low Market Cap of $1.3M compared with $15,000,000 annual sales. The price to sales ratio is a screaming buy with these kinds of numbers. Once the market, investors from all four corners of the globe acknowledge Next Inc. for the gem that it truly is, NXTI's share price will redefine return on investment. At a price to sales ratio of just one (still considered drastically undervalued) Next Inc. will have to trade 10-20X higher than the recent price per share.