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

Still moving up but a lot of investors think that they would be getting in at the tail end if they bought now. WRONG, I think this ones got a lot further to go. Sure itl have down days but the business is growing so fast alongside the online gaming industry and basicaly everything else online where NLR is hoping to diversify.

cheers GF.

I agree goldfinger, i bought more when they dipped yesterday,,im staying in with this one,

Quantum leap - tip sheet out today
NETeller main tip at 5.12
we normally ask who is tipping what
with this one we are asking who is'nt tipping it
seems everybody is behind it now
nobody is negative - scary
loads further to go

regards HUSTLER

Marvellous charts. 7 - here we come!

Eric

Early doors Eric 7 to cheap
double figures soon

regards HUSTLER

Another great start to the day for this,

Going like the clappers and like I have said before not too late to get aboard far from it.

cheers GF.

Now CityWire have tipped it and joined the party.......

[b]Shrewd Tip: top investors gamble on Neteller[/b]

Published: 07:00 Thursday 03 February 2005 By: Graeme Davies, Investment Correspondent



Shrewd investors continue to buy into real-time payments specialist Neteller despite a doubling in its share price in less than a year.

Neteller (NLR) offers an indirect way to profit from the boom in online gaming, particularly poker. It specialises in secure, instant online money transfers and has focused on serving the online gaming industry. This industry has exploded over the past few years with online poker proving particularly popular.

As a result of the huge surge in online gaming Neteller's business is growing rapidly. Its share price has reacted sharply with a rise from a low of 157p shortly after its float last year to a new high of 526.5p today, up 14p.

However this rise has not put top investors off piling in as recently as the last week of January when Framlington's AAA-rated Roger Whiteoak snapped up 50,000 shares for his Framlington UK Smaller Companies fund (Framlington UK Smaller Companies Acc). He now holds 423,000 shares in this fund and a further 1.3 million in the Throgmorton investment trust (THRG).

His fellow AAA-rated manager Dan Nickols also holds 345,000 shares in the Old Mutual UK Select Smaller Companies unit trust (Old Mutual UK Select Smaller Companies Acc) having bought 65,000 shares two weeks ago. Rathbone's A-rated Carl Stick holds 250,000 in the Rathbone Special Situation fund (Rathbone Special Situations) but has not added any since early November.

Users of Neteller deposit money into their e-wallet account then withdraw and transfer funds to any merchant or internet site which supports its technology. Individuals must provide strict identity criteria to qualify to use Neteller. Merchants are indemnified against losses thus cutting out the risk from their end and Neteller users do not have to send personal information over the internet.

The security measures in Neteller's system mean it can transfer funds instantly with very little incidence of losses. The company has also received the stamp of approval from the Financial Services Authority to operate as a bank in the UK, which has allowed it to transfer all its operations to the Isle of Man. It will now benefit from a 10% tax rate instead of the previous 33% it was paying. Its next step will be to tie up with an Asian bank to crack the lucrative online payments market over there.

Neteller is scheduled to issue fourth quarter results in the coming weeks. At the end of the third quarter it passed the million mark in its membership and was signing up 2,085 members a day on average, up 87% from the same time the previous year. Revenues for the year to that date were up 137% and pre-tax income was ahead by 134%. At the interim stage Neteller reckoned it was making $0.11 revenue for every $1 deposited.

Despite its focus on the online gaming market Neteller also provides payments for online purchases from various retailers and also allows for instant money transfer between two individual Neteller e-wallet holders. It charges a small fee for transactions and with the number of transactions it carries out growing rapidly compared with its capital expenditure profits should surge.

In the online gambling world Neteller has already signed up William Hill, Ladbrokes, Victor Chandler, Sportingbet, BetonSports and PartyPoker among its many clients. Its rivals have been rather shy when it comes to the gaming industry with Paypal not serving the industry and others such as Firepay and Click2pay not offering instant indemnified funds to merchants.

The global online gaming market was worth more than $6 billion (3.19 billion) in 2004 and is predicted to more than double to $15 billion by 2006 as access becomes easier through handheld devices and television.

For investors who feel they have missed out on the success stories of the online gaming world such as Sportingbet, Neteller could provide a novel way of plugging into the stunning growth in this sector. There is always the risk most of the growth in the share price has gone but with top investors such as Whiteoak and Nickols still buying investors with a healthy appetite for risk may want to follow suit. Buy.

cheers GF.

Smokin !!!

Its had more tips than Steve Davis' cue recently :-)

capa

'Higher still, yet higher; like a bird thou wingest!' Thought I better join the euphoria! We've seen nothing yet; just look at the charts and take that stake!

Eric

wrt goldfingers citywire tip from earlier.

On another message board (where there is also significant interest in NLR), the following response was posted-

"
Thanks for the text there - some good reading.

A couple of points that the author doesn't really make clear or perhaps doesn't know about NETeller's potential competition:

1. Paypal are very unlikely to ever be a competitor in NETeller's primary market of providing an e-wallet for online gamblers. When Paypal were bought by eBay, they pulled out of all gambling related transactions so that eBay could remain 'whiter than white'. I would have thought that a move back into this risky area would be unlikely given how integrated Paypal and eBay are now.

2. The author is correct about FirePay and Click2Pay - they don't offer instant indemnified funds for merchants but additionally they are not very attractive for customers either with their charges and set-ups. Both have attracted a lot of bulletin board criticism in online gambling boards in their time. Considering the popularity of NETeller it has, I would judge, a very high rating by it's customers - it's hard to find much sustained justified criticism by it's customers. It's customer service is first rate as well, as I've stated on this board before, which helps when any minor problem is encountered.

I'm so pleased to see this share soar - I've put over 250k+ through NETeller since I've been using them and have been very pleased to give them my custom - it's nice now that I'm sharing in their success!
"

I knew about Paypal staying clear of gambling but was particularly interested in the information about FirePay and Click2Pay and the authors own perspective on NLR performance.

Cheers,
Stuart

Superb looking chart and momentum.



cheers Gf.

gf What's the unit on the momentum chart compared, lets say, to that in the lead post chart? Eric

Over the last 3-4 weeks I have made bigger profits than the whole of last year. RTD, NLR, DGM, SHI and several others. Last year I made most of my investments after reading SCSW. This year I have listen to the advice given on this BB. So many thanks to GF, Fundy, Capa, Dil etc The drinks are on me if we bump into each other at the bar.


Got into NTL twice and both are now showing a really healthy profit.

Cheers guys

B2B

What is SCWS?

Small Companies Share Watch

Cheers

B2B , it was Momentum Investor (a sister publication) and then SCSW that convinced me that my original purchase was a good decision and I have added more since the articles were published.

Good luck.

Interesting the the mm's marked this down first thing after that trading update, especially as the statement confirms how fast this company is growing.

Q4 equal to Q3 is fantastic bearing in mind historically Q1 and Q3 are the strongest quarters.

Coming back up now I see.

capa

(AFX UK Focus) 2005-02-04 08:11 GMT:
UK smallcap opening - NETeller slips back after uninspiring trading update

"LONDON (AFX) - Shares in NETeller lost 8 pence at 542-1/2 in early deals as a pre-close trading update from the AIM-listed firm failed to inspire.

The operator of online money transfer services, said it continued to "rapidly expand" its member base and merchants in the fourth quarter.

The company said average daily sign-ups of new members grew 94 pct to 2,072 in the three months to Dec 31 2004, noting that growth in new member sign-ups has historically been strongest in the first and third quarters."

Any thoughts on what numbers are being perceived as disappointing? I can only imagine that it is the sign-up numbers given the third paragraph but average daily sign-ups growth of 94% in three months doesn't sound particularly bad to me.

Have they set higher targets which they haven't met or have I missed something else?

Cheers.