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

Looks like its finishing on an all time high again

capa

good news on partypoker gf
closed 5.10 bid although went to 5.24 during the day
heafty volume 4.25m trades
60% sold, even the sellers cannot hold it back at the moment,
like the consensus 7.00 target - possibly a lot more

regards HUSTLER

Expect profit taking tomorrow -do you think?? I am waiting for a trading update etc we must be due one soon.

Some 4m of after hours sells, mainly B and T. So you could be right moneyplus. Mind, I wouldn't want to bet against the charts! Happy to have obtained a decent stake today and don't see much downside risk. Who doesn't lose at gambing? The casino, of course! Who else doesn't lose at gambling? The people who move the money around, of course! Who else doesn't lose at gambling! Yes, its the investors in NLR!

Eric

Hi moneyplus
results due end feb/early march
trading statement could be sooner.
As for profit taking cannot say, you would
expect some to take place at some time, last
week for example but did not happen.
Whatever happens if forcasts are proved to be
correct 2006 per should drop to single figures,
stack the multiple against growth and the sp
could well treble hold on tight

regards HUSTLER

Of little concern a down day or so when you have a money making animal like this one.

cheers GF.

Thanks all! May we all prosper together.

Taking a rest so far today.

cheers Gf.

More a pause for breath, I suggest!

Eric

From Citywire this morning.....................

The CFDealer: Missed Sportingbet? Try this instead

Published: 10:42 Tuesday 01 February 2005
By: Graeme Dickson, Head of trading, Simple CFDs:

Related Articles
Shrewd Tip: time for Sportingbet:
08:04 Mon 07 June 2004 read

If you think you missed out on the meteoric rise of online gambling firm Sportingbet then NETeller may give you a second chance.

Although its market size is in excess of 500 million, NETeller (NLR) could still attract a high initial margin rate from some contracts for difference (CFD) providers of up to 35%.

A couple of weeks ago I wrote that coal and uranium were the sectors to be in for 2005. Well I want to add one more to that list: online poker.

It is highly probable that half of Sportingbet's rise - it is up 155% since Citywire tipped it at 94p in June last year - can be attributed to its acquisition of Paradise Poker in October. It was only last week that we heard PartyGaming, who own the PartyPoker.com website and Cassava, owner of 888.com are sounding out potential listings on the LSE, probably straight into the FTSE 100. The US market alone for online gaming is expected to grow from $6 billion (3.2 billion) to more than $15 billion in 2006. NETeller facilitates online money transfers in the gaming sector, unlike credit card companies along with PayPal who refuse to serve this sector.

It settles in multiple currencies, guarantees payment to the website owner and has single-point accounting approved by the Financial Services Authority. Now that it has conquered the gaming sector - major clients include PartyGaming, Cassava, Sportingbet and William Hill - it intends to become the world's leading internet bank by branching into other areas, providing payment facilities to the likes of the online travel industry and the online broking markets.

NETeller is trading on forward 2006 price earnings ratio (p/e) of just 9. Given the high initial margin and the recent strong rise in its share price it would be sensible to go long now by half or even a quarter of your normal dealing size with a view to buying the balance should the stock fall to about the mid 4 level.

In a previous column I wrote watch this space for Cambrian Mining (CBM) among a few others. You can trade Cambrian on a CFD at 40% initial margin or better.

Cambrian seems to have recently bottomed out at the 210-213p level and after seeing this morning's rise on Asia Energy (AEN) along with Western Canadian (WTN), of which it owns 27% and 42% respectively, it may spur fresh buying for the next leg up. The company, which has a strong bias towards the coal sector, recently raised 12 million through an institutional placing to maintain its strong interest in Western Canadian.

Some brokers calculate its net asset value (NAV) to be in excess of 300p a share and the argument is that this differential between the current share price and NAV should be narrowed. I agree with this analysis and suggest long positions around the 220p level.

In view that Cambrian and NETeller are AIM listed you may find some CFD providers will refuse to deal in them. However, most clearing brokers will deal a wide range of UK companies with some going as low as 10 million in terms of market capitalisation.

The trade-off here is initial margin; the bigger the stock, the less is required as a deposit for the trade. It is therefore normally wise that whenever you are dealing in high initial margin stocks you should reduce your typical trading size so as to adjust for the volatility associated with smaller companies and to allow enough room to deal in other situations as and when they arise.

cheers GF.

goldfinger

Thanks for a valuable post. I do trade CFDs (and acquired my NLR stake that way) but don't get the meaning of "the 35% initial margin rate". Do you? On second thoughts, it could well be the times your stake is covered by cash or other, more stable, CFDs?

Eric

Mentions share to watch NLR in today's Daily Mail--I haven't seen it anyone to tell us what it says please?

moneyplus
Quote from Daily Mail today
Keep a close eye on NETTeller,up 39p to 512.5.
It specialises in online wallets used by internet gamblers
who spend heavily online.The company which was boosted by a positive
note from broker Durlacher last week , aslo has an online banking
licence in its pocket.
Rumours floated round the market that it is in talks with a small
European bank with a view to an acquisition.End quote

regards HUSTLER

Yes moneyplus ,,,The company which was boosted by a positive notefrom broker Durlacher last week also has an online banking licence in its pocket..Rumours floated around the marketthat it is in talks with a small European bank with a view to an acquisition...
Im staying in despite the lull..

Daily Mail Market report by Edmund Conway,

"Keep a close eye on NETeller, up 39p to 512 1/2p. It specialises in online wallets used by internet gamblers who spend heavily on line.
The companywhich was boosted by a positive note from broker Durlacher last week, also has an online banking licence in its pocket.
Rumoursfloated round the marketthat it is in talkswith a small European bank with a view to an acquisition". ENDS. SD

Looks like we all replied together mp
spoilt for choice

regards HUSTLER

Thank you very much all--all good for the SP. cheers MP

Started out well today up 20 to 5.32 soon after opening
huge trade over 1.6m shares over 8m went through looks
like a broker trade not sure anyone with more info ???
this trade reversed trend now standing off 2p at 5.07 bid
at time of posting
report in daily mail today interesting, read previous posts
looking to purchase bank, this would be a huge step forward
in securing links to asia markets.

Regards HUSTLER

For the record, I understand that The Poker Channel will start on the Sky TV Network mid March 2005. That should encourage plenty more willing donors to the internet tables which is good news for me (the poker newbies are easy prey) and good news for NLR and SBT. Also, don't forget William Hill and Ladbrokes who have big flourishing poker sites already.

Got shaken out of Logica a few years ago --up21k-- lost 10 -- given the future NLR has -- not placing a stop here -- just watching from PC in tea-breaks at work!!!