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

Started to buy again with avengance. Added 6 now new tranches this morning. Dont forget all those that tipped this including all the tip sheets will have to update and there was a LOT. The Asia news we have recieved is excelent but you can see from the RNS that its just the beginning and more acquisitions are on the way. I can see Dills september figure of 11 quid being made .

cheers GF.

Killik Brokers Morning note....................





NETELLER China acquisition



Neteller, the leading online money transfer service provider that has benefited from the strong growth in gaming, announces today the $12.5 million acquisition of Quick Access, a Macau based debit card payment company. This represents its first move into the important China gateway story and will represent an earnings enhancement in year one. The deal is small in financial terms but important and a seemingly low risk route into a market they need to understand and have exposure.



The shares have been strong performers of late rising to 630p (up from the recent 280p placing price) for a prospective 23x earnings. We recommend this stock.

cheers GF.

Where is everyone?.

Busy calling their brokers to buy NLR, I shoudl think.

I'll buy at under 475p - but wish you all luck way above my reach at present.

SD

You worry too much gf , sit back and enjoy the ride :-)

At last we have the boys back. Up 28p now and not far off its day high , thats more like it. I can see youer 11 quid target being hit here Dil well before september. BUY BUY BUY . Lets not forget aswell the acquisition today is earnings enhancing in this calendar year so that will drop the P/E to a lower figure. Its currently a rolling P/E of 22. At next results we should see the forward P/E drop dramatically.

cheers GF.

Great piece here from CityWire..............

Tip Update: Neteller makes first footprint in Asia

Buy: Graeme Davies, Investment Correspondent

Shares in Citywire tip Neteller are on the move after the online money transfer service made its first acquisition in Asia, a prelude to a major push to establish itself in the fast growing online gaming sector there.

Neteller shares (NLR) are 15p higher at 637.5p on the back of its $12.5 million (6.6 million) acquisition of Quick Access, a Macau-based debit card payment processing company. Citywire tipped Neteller at 526.5p last month.

The deal is made up of three payments with 60% of the full payment made upfront and the remainder in two equal payments in each of the next two years as long as Quick Access maintains certain contractual relationships.

Macau's proximity to China and its status as a Special Administrative Region of the People's Republic of China gives Neteller a vital foothold in the Chinese market.

Quick Access was begun two years ago and processes around $50 million of payments a year. It is already profitable and will contribute to earnings this year. However Neteller is keen to integrate its own hugely successful e-wallet technology into Quick Access' business. In the mean time a simplified version of the e-wallet will be integrated into the Quick Access system until the full Neteller service is ready for use in Asia, having been updated to accommodate Asian currencies and languages.

Chief executive Gord Herman said: 'Launching our services in the Asian region is our highest strategic priority at present. By integrating an e-wallet payment platform with Quick Access, Neteller expects to generate significant growth in its processing volumes and profitability.'

The acquisition of Quick Access is unlikely to be the last in the Asian region and Neteller has also appointed Benjamin Lee, the former deputy trade minister for Hong Kong, to lead its operations in Asia.

Neteller has grown rapidly since listing in the UK last year. Its shares have risen from 157p to as high as 640p. At its fourth quarter trading update last month the 750 million company announced it signed 2,072 customers a day in the final quarter, up from 1,068 the previous year. Average daily receipts rose from $1.1 million to $2.3 million as online gaming has taken off.

The e-wallet offered by Neteller is ideal for online gaming as it offers instant indemnified payments to merchants, a service rivals such as credit cards and paypal do not offer. Participation in online gaming has exploded over the last couple of years and Neteller has taken great strides in North America and Europe and is now targeting the fast growing Asian market, where local expertise will be crucial.ENDS>

The highlited paragraphs refering to local knowledge being crucial.

cheers GF.

And more positive news...........................

This just out from Dow Jones Newswires:

DOW JONES NEWS RE SBT & NLR

03/03 14:37 Sportingbet CEO Wary Of Expanding Into Asia For Now

LONDON (Dow Jones)--Sportingbet PLC's (SBT.LN) chief executive said Thursday that concerns over payment-processing will deter the online gaming company from expanding into Asia in the near term.
Sportingbet CEO Nigel Payne was speaking at an online gaming conference in London.
Payne, who last week said the company could look for acquisitions as early as June, said Thursday that the low margins currently available in the Asian market don't yet outweigh the risks involved with the transfers of funds.
But "if NETeller can crack open China," Payne said, the company might be interested in expanding there. He was referring to NETeller PLC (NLR.LN), a money transfer service used by Sportingbet and many other online gambling merchants, which bought a Macau-based payments processor earlier Thursday. The deal will allow NETeller to offer electronic money transfers in China and is its first move into Asia.
The Asian market has the potential to open up in the next 12 months, Payne reckons.
The Chinese online gaming market grew 90% to $435 million in 204, according to market research firm Analysys International, and is expected to grow another 50% this year. Globally, the online gambling market is estimated at about $12 billion, growing at 20% a year.
(MORE) Dow Jones Newswires
March 03, 2005 09:37 ET (14:37 GMT)

cheers GF.

Back to form with a bang, just look at it go now.

cheers GF. PS , nice to see the volume as returned. Plenty of updates over the coming days.

Good postings gf.
Interesting Sportingbets comments
they obviously rate NETeller very highly and are looking
to them to crack open asia market before they make
make thier move, which means the bond between the two
will remain strong which can only be good news.
All this good news and they finished on a new
high of 6.52 bid, roll on double figures in the near term.

regards HUSTLER

Got to take the opportunity to say thanks to gf and co. Got into these early and am seeing really excellent profits. Long may it continue.

Cheers

B2B

Like I said last Friday, sometimes it is better to just buy and hold, finished at an all time and intra day high again. I suppose this could be classed as a breakout.

capa

Got to be the most bought share on the market at the moment. Theres so much to come aswell.

Cheers GF.

Earnings enhancing deal today will take the prospective P/E down to around 19, BUY.

cheers GF.

This ones heading for the Moon Hustler.

cheers GF.

Was that a ramp GF ??
Baza

more like a launch pad Baza
rockets need them
all the best

HUSTLER

Firing on all cylinders this morning. The crowds back buying this one.

cheers GF.

More news in......................

Guardian Market Comment

On Aim, NETeller, which has developed an electronic wallet for online gambling, climbed 33p to 655.5p, an all-time high. The rise came after the company secured a foothold in the potentially lucrative Chinese market through the acquisition of Quick Access, a Macau-based credit card payment processor, for $12.5m.

The stock was also lifted by news that house broker Durlacher had increased its earnings forecasts for this year and next to 57.8 cents per share and 114.3 cents respectively, which puts NETeller on a price-earnings ratio of about 20 times for 2005 falling to just over 10 for 2006.

"The underlying NETeller numbers appear to be strengthening with the average number of joiners around 2,400 a day. With March madness still to come in the USA, we feel it right to upgrade the outlook," said analyst Julian Tolley. ENDS.

Forward P/E of 10 makes this one very cheap indeed.

cheers GF.

Rising earnings forecasts are great news for stock prices