NETeller - NLR - 3.15
Thought i would start a new thread following on from
hawick - new issue looks very special - not to steal the thunder from
hawick but just to highlight the company name to those not already in to this
potential blockbuster.
Those of us who are following NETeller know the background and have been
active with postings,for newcomers i strongly sugest viewing the
( new issue looks very special posting )the content will speak for itself.

Brief overview of NETeller
The company handles online cash transactions across the globe
on 21st oct gained fsa approval to operate as a regulated e-money issuer
and will passport the regulated status to all 25 EU member states
it has over 1 million clients rising by 2000 number each day
1500 online merchants and processed over $1.5 billion in 2003
pre tax profit is estimated to be 29 million to dec 04 rising to
40 million next year
per currently 20 to dec 04 falling to 11.5 which is low for sector
brokers have been raising forcasts on a regular basis
share price has risen over 50% since launch earlier this year
new markets emerging constantly,asia has the potential for supergrowth
online casinos are creating enormous profits
given all this - cash generative - huge market - fsa approval
infastructure in place to handle growth, profits accrue to bottom line
the market force is behind it with good relative strength
all put together it is hard to argue against this has the potential
to be a blockbuster over the year ahead

regards HUSTLER

The annoying thing is that PRTY's ability to attract new customers is slowing because they are losing out to other gaming sites.
However NeTeller (and FireOne) should be relatively unaffected as the punters will still need to use them to transact money in and out of their accounts.

Good comments Supermono
Just as we were nicely placed with cracking results.
It goes to show how the markets can react to a hint
of bad news the whole sector is being hit.
When the dust settles the marketmakers should see us
as good value as we are covering a very wide network,
and will pick up the players on many of the sites.
All the best
HUSTLER

Well overdone this , got some more at around 800p ,this will recover faster than the gaming company's IMHO...

Snap Jimmy. Too smug yesterday about my first ever double bagger .... Serves me right. However like you I can't see this as being anything other than a buying opportunity. Couldn't make 800 but got in at 809. Smiling at the moment. Hope to have an even bigger smile at 4.30

B2B

b2b i was sitting on a large profit last night too, not to know this was going to happen, as HUSTLER said results were cracking, and for me nothing has changed,,may have to wait a little longer for that 10 ...

Have watched this with envy all the way up. Lots of cash and satisfactory profits, plus good growth outlook despite todays coments on the gaming sector. Bit of a slowdown should enable them to get on top of admin systems (in particular re bad debts, which are still too high). Better systems might be found in a clearing bank and NLR could be a tasty buy for one of them. Fundamentals still look Ok to me and bid prospects in for nowt. Bought on the drop at just over 8.

relieved you're all topping up--I'd like to but no funds available! notice the sells are small amounts but the buys quite chunky.

What a day !!!
The strength of the share price after hitting sub 800p earlier suggests people have realised that NLR prospects are largely unaffected by PartyGaming woes.
We should move on back towards 900p tomorrow (and FireOne back towards 475p too).
Haven't got the heart to tell the PartyGaming boys that their share is on it's way to sub 90p though !!!
However you heard it here first.

;o)

Here, here, supermono....

This could be right back where it was on monday at this rate..Nice

But where would it be if it weren't for PRTY? Still it gave several people a chance to top up at 8. I would have done but all available cash went into BFC.

From today's Shares mag:

NETeller is branching out of the online money transfer business
and will launch credit card and loan products next year, says
executive vice president Dale Johnson.
According to Johnson, the firm is holding discussions with a number
of UK-based banks about launching NETeller-branded bank accounts,
credit cards, loans and other financial services products. He says that if
it can exploit is customer base which consists primarily of young
workers with lots of disposable income it should significantly boost
profits.
NETeller, tipped by Shares as a Play of the Week last November,
expects to sign a deal with a bank before the end of the year and
products to be available from the second quarter of 2006.
Johnson says: Our observation is that a large part of bank
profitability is derived from cards. It occurred to us that with our
significant and rapidly expanding customer base with a highly desired
profile for the banks a partnership with a bank will provide us with the
opportunity to offer cards and share in that profitability.
Johnsons remarks follow news that NETeller more than doubled its
customer base to 1.7 million over the year to 30 June. Additionally, the
firm says the number of online merchants using its systems went up
21.4% to 1700 over the first half, following the addition of companies
such as Betfair and Expekt.com.
NETeller is upgrading its money transfer systems over the next 12
months and Johnson promises that there will be minimal disruption
for users.

Shares says: Expect even stronger growth once it starts
selling financial services products.

by: Geoff Ho

Clearing banks not renowned for their astute acquisitions over the years, but the upside of a tie up with NLR ( in whole or in part) patently obvious - does anyone know who major shareholders in NLR are?

Hi all
A tie up between nlr and mbna would be interesting given the shared interest in china dont you think?

Loadsa

There ,back to 900p already,, easy as that...

A very nice profit for the brave punters that jumped in when it fell!! unfortunately I had no spare dosh but I'm looking forward to cracking 10! If this banking tie up goes ahead does anyone know what it's sp should be in comparison with say HBOS?
I know roughly how to do it but I'm not very mathmatically bright!!

Very different business to HBOS (which is why it is attractive to their ilk) Just as NLR has customer base which could use basic financial services, so the clearers have huge customer bases which could help NLR. Interim figs showed EPS 31cents(US) - even conservatively they should reach 65cents for the year and on P/E 25 (modest for such a cashrich and profitable business growing so fast) that equates to SP over $16 i.e towards 10.The argument for a tie up is compelling on both sides so imo it will happen, with NLR having stronger negotiating position.

cheers Partridge-exciting prospects.

Broken through the 900p barrier now,,is this the next leg up ?

profit taking this afternoon I expect but I think I'll hang on to mine-it's quite a ride!