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

This is such an exciting share !! I can hardly believe my luck in finding and actually following my instincts by buying. It could so easily have been a wish I'd bought story. thanks for the info GF. With all your picks doing so well when do you make your first million??

Some more coverage here as well MP.............



mitzy - 12 Feb'05 - 14:30 - 260 of 261


Recieved my Feb edition of Scsw today and they mention they have visited the management of three Biotech companies this month and they will reveal more next month.I'm hoping its MMI's...because they covered them 3 years ago and then dropped coverage of them.
Neteller is the January tip of the month in their portfolio..

cheers GF

From the Fleet Street Letter.......................

...."As evidence of the beauty of its business model just consider these facts: every $1 deposited with NETeller typically brings in $0.11 of revenue and this translates into $0.066 of profit. So for the first quarter of 2004 the company made an impressive daily profit of $92,500.

Its revenue is derived from it taking a cut from each movement of cash that takes place between the merchant and the customer and at present 63% of NETeller's earnings come from its merchant base.

Spectacular margins - and take a look at that growing cash mountain

It enjoys a spectacular gross margin of 69% and with limited additional costs expected during its predicted future growth, much of its new business will be dropping straight through to the bottom line. Profits are expected to hit $51m this year and grow to $67m for 2005.

One thing the company does not suffer from is an ability to generate cash. At the end of June NETeller was sitting on a cash pile of $122m compared with $31m the previous year.

Its rapid growth and cash generation is a result of it successfully growing both its base of customers - they presently stand at 1m and are predicted to double over the next 12 months - and its merchants that now number 1,500. "

cheers GF.

And some more good news from the Times yesterday.........................

Neteller, which has developed an electronic wallet for online gambling, rose 21p to 602p on optimism ahead of US investor presentations.

cheers GF.

A fellow NLR investors overview - very good!

"
Looking through my NETeller folder-I note how sentiment towards this stock has accelerated at an alarming rate recently. Please note my use of the word Alarming should be taken an Bullish! I have an IC note tentatively making NLR a buy at 2.30.
It ends with the following provisos;
BULL POINTS
Rapid growth
Cash-generative and cash-rich
Market leader
Acquisition target for banks

BEAR POINTS
Unpredictable and rapidly evolving market .

Then I see Canaccord Capital Equity Research 9 Sep 2004 stated-
---We are initiating coverage of NETeller with a BUY recommendation and a 437p
target price, which equates to 15 times our F05 EPS and an EV/S of 7.5. Risks
include uncertainty of future regulatory action in the US, revenue concentration from the Internet gaming sector, and improvements in competitive offerings..
NOTE-They have since upgraded in the January 31st 2005 note with a price target of 6.25 target.

Of course the decision by Party Poker, the worlds largest on-line poker operator to seek a UK listing has suddenly set the sector on fire. Estimates are now being upgraded almost daily with a Durlacher note of late January 2005 stating Our short term price target is thus raised to 700p and longer term to 1200p.
Note how sentiment towards this stock has accelerated at an alarming rate!

I became interested in NLR as late as 3 and then was almost bounced out when the founders offloaded all those shares at 2.80. However despite others concerns-I saw this as very bullish and got digging for more shares.
It was probably the announcement that Neteller had been awarded an e-banking licence- which will drive sales, reduce costs and thus lead to even greater profits progress. The e-banking licence will allow Neteller to advertise its services within the UK and, once the pass-porting to all 25 EU countries has been achieved, throughout Europe-that finally threw any doubts, if investors had any, that shares in Neteller were capable of moving substantial higher.

As an investor you have to avoid the daily static and focus, just focus upon the bigger picture. Little surprise then that before NLR burst through the 5 barrier, in January more than a few shrewd fund managers were increasing their weightings here. As reported on CityWire;
Framlington's AAA-rated Roger Whiteoak snapped up 50,000 shares for his Framlington UK Smaller Companies fund . He now holds 423,000 shares in this fund and a further 1.3 million in the Throgmorton investment trust .
His fellow AAA-rated manager Dan Nickols also holds 345,000 shares in the Old Mutual UK Select Smaller Companies unit trust having bought 65,000 shares two weeks ago. Rathbone's A-rated Carl Stick holds 250,000 in the Rathbone Special Situation fund but has not added any since early November.
I say you shouldn`t be surprised if these very same fund managers have been adding. I know I have!

Neteller has already signed up William Hill, Ladbrokes, Victor Chandler, Sportingbet, BetonSports and PartyPoker among its many clients, and now the prospect of non-gaming related revenues are fuelling fire to the imagination.
As Share Weekly pointed out- The company has ambitions beyond the gaming market. For example e-wallets are ideal for cross-border peer transactions where both parties have ewallets. The recipient of the cash can then use a NETeller debit card to take out cash from a cash point machine or transfer funds from the e-wallet into a bank account.
Another exciting prospect relates to stock market transactions. These have much in common with betting (too much, some investors might think) and could lend themselves to the e-wallet approach. Trials are being conducted with some small Canadian stock brokers. Ultimately the company has aspirations to become an Internet bank.
(Now with that last line Internet Bank, could Neteller have thrown a treble six?!)

The trading update last week did not contain details of any Asian expansion and commentators claimed that Netellers statement as Uninspiring. What utter Tosh!
In a pre-close trading update, the company said average daily sign-ups ofnew 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.

Well if that`s uninspiring, keep the lack of inspiration coming lads!

Like I say-as an investor you have to ignore hapless market static and focus-focus-focus. I intending riding all the way with this company-opportunities this good must be used to your every advantage!

As Share Weekly concluded- .When co-founder, Steve Lawrence, realised the potential of the business, two and a half years ago, he recruited a heavyweight chief executive, Gord Herman, formerly boss of GE Capital in Canada. Since then growth has been rocket-paced. NETeller may even have the potential to join such star companies as Ebay, Google, Yahoo and Amazon as one of the key heavyweights of Internet commerce..
"

Cheers,
Stuart

Good post Stuart read with interest..700 by the end of Feb ??Jb

Yes excelent post Stuart, was that from the ample board?.

cheers GF.

Hi GF,

Yes, I've been caught :)

The Ample board has a been very busy on NLR stuff and is where I'm finding most of the additional information. Recently the number of informative posts has increased dramatically - probably in relation to the number of informed people holding!

Not sure exactly what to expect this week from NLR. Still very positive but surely this uptrend can't continue at this rate until company reports!?!?

Cheers,
Stuart

What a great start,, the way this is going ,,700 by the end of the week..

Amazing start!

Ignore my comments on whether the uptrend can continue.

Onwards ...

Thats ok Stuart ,i keep thinking the same its got to slow at some point,, hope im wrong...Jb

Won't this ever pull back to allow a chap to get in?

Foitek its cheap now, youl be waiting for ever and will grow a 20ft beard LOL.

cheers GF. PS, dont forgeet management are about to do presentations for US investors.

Just been catching up - quite happy to have my 10K CFD p[osition purring away in the background. Brilliant posts from goldfinger and stuart. They really fill in the reasons for the success story and why it will continue motoring. OK, competition will emerge as for Yahoo, google and Party Poker but there is such a thing as momentum and market leadership. Really is a longterm hold. For those not into CFDs, the big plus is that you can reinvest the suplus on the trade without closing it: I bought NLR on the margin from SEO and have just used the margin on NLR to buy BPRG and, hopefully, so it goes on!

Eric

Eric - advice please - I noted your comments re CFD's a couple of weeks ago and have done some research on them and finally felt brave enough to open an accout with BSL.

However - they do not list them as a CFD that they trade.

Does one have to ask - or do only certain SB''s deal

Thanks in advance

Baza

EWR

Who do you use for your CFD'S? Been tempted but I did'nt think all brokers dealt CFD'S on the AIM market. If you decide to bank any profits using CFD'S how long does it take to hit your bank account? If I've asked anything too personel, sorry.

LOL

MS

Eric which company do you use for CFDS on NLR please and other smaller companys?

cheers GF.

Is that the rise over for today,?? 700 by week end..Jb..

Excelent news on the political/legal front......................

The Caribbean state of Antigua and Barbuda has beaten the US in a dispute over internet gambling.

The country relies on online gaming for much of its foreign currency earnings but was shut out of the US market by laws banning cross-border gambling.

It took the US to the World Trade Organisation, claiming that the ban was designed solely to protect the huge US betting business - and won.

The US says it will appeal against the WTO decision.ENDS.

This sets a whatever in law now. Smile.

cheers GF.

The good news just keeps on coming gf
and can't see an end to it.
Mind boggles as to what could happen in
the next 2 years - FT 100 stock ???
Brokers forcast does not take into account
10% tax reducing to zero over next 4 years
as if 10% was high.
Report due 5th april
new markets
looking to purchase a bank
asia to come
court judgements in favour
nearest thing to a cash making machine
america presentation - come and join in
etc etc etc.
how many durecell bateries does this one have
just keeps on going and going and going

regards HUSTLER