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

Fall looking very overdone , one for the watch list for the bounce.

NLR will be bouncing up tomorrow, I think...too many days of downward trend...369 today

Has everyone forgotten this one? Fundamentals seem good to me & I topped up at 305 and its bouncing just fine this week - worth keeping an eye on this as Party Gaming noise settles

Fantastic performance today !!!!

Going down as UBS-AG selling off its interest in NLR.

The Times October 02, 2006


Gambling online faces collapse in US after Senate ban
By Dominic Walsh



AMERICAs $6 billion (3.2 billion) internet gambling industry is facing meltdown after the US Senate pushed through a Bill at the weekend outlawing the processing of bets by banks and credit companies.
The surprise move, which is expected to spark a massive share sell-off, will prompt London-listed 888 Holdings to announce this morning that it is halting its entire US-facing operation, accounting for half its business.



PartyGaming, the worlds biggest internet gambling company, said last night that it was still evaluating the situation, although industry sources believe it will also announce a cessation of its services to American punters.

However Sportingbet, which was celebrating on Friday after a New York court released its former chairman, who had been facing gambling charges, will tell investors that it is still digesting the implications of the Bill.

Despite the Bills prescriptive nature, it excludes local online betting on horseracing, fantasy leagues and lotteries. It also has no impact on the hundreds of casinos and gambling emporia that dot America, ranging from the neon palaces of Las Vegas and Atlantic City to the riverboat casinos that ply their trade on the Mississippi.

One senior internet gambling executive said last night: This is the worst form of protectionism I have ever seen. This will drive internet gambling underground and consumer protection will go out of the window. The religious groups that lobbied for this may live to regret it.

The Unlawful Internet Gambling Enforcement Bill needs only to be signed by President Bush to become law. Legal sources predict that he will do so in the next two weeks, possibly as early as Wednesday.

The passing of the Bill in the early hours of Saturday surprised the industry. Although it had successfully negotiated Congress, its passage through the Senate looked likely to be blocked through lack of parliamentary time.

However, Bill Frist, the Republican leader in the Senate, got the measure through by attaching it to an unrelated Bill that enhances port security.

Gambling is a serious addiction that undermines the family, dashes dreams and frays the fabric of society, Dr Frist said. The bottom line is simple: internet gambling is illegal. Although we cant monitor every online gambler or regulate offshore gambling, we can police the financial institutions that disregard our laws.

The ban may drive some small companies out of business, although big operators such as 888 and PartyGaming will highlight the strong prospects of their non-US business.

However, 888 is expected to warn its shareholders in a Stock Exchange statement this morning that its withdrawal from America will force it to pare back its cost base, resulting in a significant hit against this years profits.

Views on NETeller please !!!!!!!!!!!!!!!!
Get in or get out, any comments welcome.............................

My worst performer this year by some margin - serves me right for breaking one of my golden rules and investing in a non dividend paying business. Bought at just over 7 and stopped out on most at 6.(Broke another rule by not selling the lot). According to RNS, as at end Sept has $200M free cash and by the time they stop accepting any US business that may be up to another $50M. No debt so unlikely to go bust and the intangibles in their balance sheet much less than in FPA before recent writedown. So what happens when they lose 70-75% of their business? All imo rests with quality of management and I currently am considering averaging down on present holding (thereby breaking another rule).May be better to wait for next results to see level of writeoffs and strategy going forward, but one to watch. Always DYOR etc.

Morgan Stanley has bailed out of NLR and UBS AG has reduced its stake from 4.04% to 3.68% today

Next scheduled trading update on Thursday 18th January 2007 - any one have any views? Been moving up nicely over the last few weeks...

Bad news again today...2 former directors of NLR had been detained by the Feds in the US. Looks like there is some dodgy dealings although they are ex-directors. Otherwise why would NLR SUSPEND itself???

looks like the yanks have planned this...i bet they have gone short on neteller but perhaps didn't count on them suspending the share...hope they get released on no charges and after suspension is lifted hopefully after trading statement it will rocket 200p+

No chance of that:

Billion dollar laundry

The US has a dim view of Neteller, clearly.

BARSTARDS!!

Could this be a sad end to what should have been a great story?

Interesting development.


http://www.newswiretoday.com/news/13355/


e-Wallets Neteller to be Replaced by YouTeller

NewswireToday - /newswire/ - London, United Kingdom, 01/30/2007 -

Shortly after Neteller announced its decision to pull out of the US gaming market on January 18, the London-based technology company Seed Capital Ltd. introduced a new payment processing service 'YouTeller.com'.

"We will start in March with a revolution in simplicity of worldwide online payments. Everybody who can download songs or play online games will now be able to pay for that instantly," said Johannes Knierzinger, CEO and co-founder.

On Monday the British Financial Services Authority (FSA) granted YouTeller the "Small E-Money Issuer Certificate", therefore making it possible to operate as an e-wallet. "The FSA has already given us the green light. We will begin services after the server-security testing period is completed," said Florian Schweitzer, company spokesman and co-founder. It took three month to develop the new online payment framework.

"We have no overseas branch in a NAFTA-country like Neteller or Citadel, so we are not affected by US legislation," underlined Schweitzer. YouTeller is part of an international lobbying task force that works on the issue 'worldwide online payments' with the World Trade Organisation (WTO) and the European Union.

The WTO has again ruled against the United States in favor of Antigua and Barbuda, this time for not taking "the necessary steps to comply" with the April 2005 WTO ruling to correct discrimination against foreign internet gambling operators, Reuters reported late last week.

Earlier this month, federal officials arrested the founders of Neteller, an Isle of Man-based online payment processor, while they were in the US to switch planes. John Lefebvre and Stephen Lawrence are set to fight the charges laid against them when they appear in court in February.


http://www.youteller.com/index2.php

Trading resumed at 3.30pm today.

Closed at 63p.

Ian