This company floated on AIM today. Already recording spectacular growth (see announcement). Could be a rival for paypal and (conceivably) Earthport, but branching into other areas such as the currently clumsy 'swift' banking.
Well worthy of close inspection.Floated today i bought in just below float price, of 200p, @197.55p.

NETeller joins AIM. Announcement as follows:

"NETeller plc, one of the leading online money transfer services, is pleased to announce the admission of its shares to trade on the Alternative Investment Market (AIM) of the London Stock Exchange plc.

Highlights:



In conjunction with the AIM Admission 15,000,000 new ordinary shares have been placed on behalf of the Company at a price of 200p per share. In addition 2,500,000 existing ordinary shares have been placed at a price of 200p on behalf of selling shareholders

As a result 30 million has been raised for the Company and 5 million for selling shareholders.

The Directors intend that the net proceeds of the Placing will be used for website development, to make acquisitions, and for general working capital.

The principal purposes of the Admission are to create a public market for the Company’s ordinary shares; to raise its profile and status; to enable employees to be incentivised by the grant of options in publicly traded shares; and to provide access to capital.

Canaccord Capital (Europe) Limited (“Canaccord”) is the Nominated Adviser and Joint Broker for the Admission. Durlacher Limited is also Joint Broker to the Admission.


Commenting on today’s announcement, Gord Herman, CEO of NETeller said: “The level of institutional support for NETeller’s placing has been very satisfying. Having successfully completed this stage of the Company’s development we are now committed to getting on and delivering for our shareholders.”
- Ends -


Overview
The NETeller Group operates an online money transfer service that utilises and extends the existing international banking structure to provide a secure means of transferring funds worldwide. A NETeller System account is like a virtual wallet which enables Members (an individual who has opened a NETeller account) to deposit, withdraw and transfer funds to any Merchant (or internet site) that supports NETeller System online payments for goods or services. In June 1999, Stephen Lawrence, the founder and major shareholder of the NETeller Group, conceived the idea of an ‘e-wallet’ that could be used to fund Internet based transactions without the security risk of processing each transaction at each separate Merchant site. In August 1999, John Lefebvre teamed up with Stephen Lawrence to develop the concept and to assist with raising capital.

As at 31 December 2003, there were approximately 586,500 Members using the NETeller system, growing at 1,600 per day. At the same point there were 1,250 Merchants registered to use the NETeller System. Since processing began in July 2000, an average of 30 new Merchants have been added each month.

To date the most receptive market segment to NETeller Group’s ‘e-wallet’ concept has been the online gambling market.

In 2000, private funds of US$200,000 were raised to establish the NETeller Group. Growth to date has been financed by internally generated cash flow.

Gord Herman, was appointed Chief Executive Officer in February 2003 and under his stewardship NETeller HAS INCREASED MONTHLY REVENUE from US$866,000 (September 2002) to approximately US$4.335m (December 2003). In the year ended 31 August 2003, NETeller generated annual profits of US$13.5m, before other income and expense.

An excelent interview...................

THE NEWS WIRES

10/26/2004
TOW Exclusive Interview
Dale Johnson, Neteller Executive Vice President
TOW: What, if anything, has changed after Neteller went public?

Neteller: There have been many changes in the six months since NETeller floated on the AIM. Following are some examples:
Membership in NETeller has increased by over 50 % to more than one million.
Daily receipts of funds for the purchase of e-money has also increased by more than 50 % to more than US $2 million daily.
NETeller UK Limited has become authorised by the Financial Services Authority (FSA) as an e-money issuer pursuant to the FSA's e-Money Directive.
Increased awareness and understanding of NETeller has been created within the investment community and NETeller's share price has increased by more than 50%.
Preparatory work has continued in relation to penetration of the European and Asian markets, including development of local relationships and banking arrangements to enable funds transfers.
The sign-up module on NETeller's site has been rebuilt and launched, resulting in improvements in conversion of visitors to new members.
The senior management team has been established in the Isle of Man, fulfilling a key requirement for qualifying most of the NETeller's income as being earned in the Isle of Man , resulting in a substantial reduction in the effective tax rate, expected to commence in 2004Q4.

TOW: How are the two plans of expansion, Neteller Europe and Neteller Asia, going?

Neteller: Preparatory work has continued in relation to penetration of the European and Asian markets, including development of local relationships and banking arrangements to enable funds transfers. News flow over the coming weeks will update investors on these developments.

NETeller UK Limited, a subsidiary of NETeller plc, has received authorisation from the Financial Services Authority (FSA) to operate as a regulated e-money issuer. The Company intends to passport' this regulated status into all 25 EU member states, which is accepted practice and opens previously untapped markets for the Company. This opens the way for NETeller to aggressively promote its activities in Europe , and to capitalise on and grow the European customer base historically serviced by its Canadian sister company. It gives the Company increased competitive edge over unregulated companies that operate in the EU in this sector and that are likely to come under increased scrutiny by the regulators. Authorisation by the FSA also enhances NETeller's credibility in many Asian jurisdictions.

TOW: Neteller and the gaming Industry : to which extent has Neteller benefited from servicing the gaming Industry?

Neteller: NETeller sells and converts e-money using an e-wallet to enable settlement of online transactions. The attributes of this e-wallet include real-time transfer of e-money both to and from online merchants. Moreover, NETeller indemnifies merchants with 100 % non-refutable funds. These attributes create a strong value proposition in the online gaming industry (where there is a two-way flow of funds) and, accordingly, the online gaming industry has been a ready adopter of NETeller's services. The online gaming industry comprises NETeller's largest customer group. The second largest customer group involves peer-to-peer funds transfers.

TOW: Which are the problems that Neteller has had or is facing because of servicing the gaming Industry?

Neteller: The UK has indicated its support of becoming a global centre of excellence within the gaming industry, including the online gaming industry. Legislation is being developed to strengthen the regulatory environment for gaming in the UK . Accordingly, the UK is a favourable environment for gaming merchants.

Although NETeller is not a gaming company, the gaming industry is a major user of e-money issued by NETeller.

NETeller has not encountered direct problems related to selling e-money that is subsequently used in settlement of gaming transactions. However, online gaming merchants are restricted from operating in the USA (excepting certain carve-outs) and, as a result, serve US customers from offshore locations. The uncertain regulatory environment in the USA could change in ways that become more restrictive for offshore gaming merchants, thereby reducing the corresponding business volume. It is to this extent that the demand for e-money could be reduced and NETeller could experience a reduction in business volume.

TOW: Neteller and credit cards deposit : do you have any future plans to bypass the 7995 coding problem?

Neteller: Technically, a member funding his or her NETeller e-wallet using a credit card should not be coded 7995, since the member is purchasing e-money for use in settlement of online transactions (which are not limited to gaming transactions). Many issuing banks in North America perceive that, if a card holder is purchasing e-money from NETeller, there is a relatively high probability that some of the e-money will be used for settling gaming transactions. Online gaming transactions are among those characterized by high charge-backs and, accordingly, these issuing banks wish to avoid the risks and do so by coding purchases of e-money from NETeller as 7995 and not authorising the credit card transaction requests. Some issuing banks accept a limited volume of such transactions. In the EU, the majority of issuing banks accept these transactions (although an increasing number are following the pattern in North America as a risk management measure).

As NETeller expands its operations both geographically and in terms of served markets, we will seek clarification and amendment of the coding in instances where it serves the company's interests. Restrictions resulting from 7995 coding of credit card transactions directly with gaming merchants actually amplifies NETeller's value proposition.

TOW: Neteller fees: merchants usually fingerpoint at Neteller when questioned about fees they impose to their customers. How would you address this accusation?

Neteller: Members can use the NETeller system without paying any fees and many do. In some countries, members have the choice of using InstaCash to enable immediate settlement of online purchases rather than waiting a few days of clearing time for funding of their e-wallets. In these instance, members pay a fee of 8.9 %. NETeller actually loses money on first-time users of InstaCash due to bad debt. While there is understandable preference that this fee be lower, most members still choose the InstaCash option rather than funding their e-wallets in advance. We continue to improve management of bad debt and we will also continue to evaluate the member fee levels.

Merchants pay fees whenever payments are made from NETeller e-wallets on behalf of members, just as banks do when cards are used. While merchants always prefer lower fee levels for any payments schemes, NETeller's "transfer to" fees are attractive relative to those charged by card schemes when the charge-back costs are accounted for (and payments received through NETeller are fully indemnified).

Although not directly tied to fees, security of funds is a benefit that both members and merchants realize by using NETeller and paying the corresponding fees. More specifically, 100 % of all member and merchant funds in the NETeller system are held in segregated trust accounts and NETeller has no right of offset in connection with these trust accounts. These accounts are audited daily. In other words, members and merchants are afforded the comfort that their funds are secure independent of what happens within NETeller.

TOW: How would Neteller perceive the existence of a serious competitor and how would this affect Neteller in your opinion?

Neteller: NETeller has serious competitors and we closely monitor their activities. We know that, while we have established critical mass and a large member base, we are in a competitive race.

TOW: Neteller and security: do you believe your platform is secure and/or are you planning to add new security features in the near future?

Neteller: NETeller has prioritized security -- this is reflected by a sizeable, world-class security team within NETeller. NETeller is, at its core, a risk management company and security is the cornerstone of managing risk.

There are many dimensions to security of the NETeller platform, ranging from security and redundancy in physical system infrastructure to authenticating identity to privacy of information to protection from fraud and more. NETeller has a robust platform from a security perspective. However, security is a moving target, requiring that security be constantly improved. NETeller's value proposition, including indemnification of merchants and InstaCash, is underpinned by a strong identity engine and work is ongoing to continuously improve our identity capabilities.

TOW: Does Neteller share its customers/merchants data with any public or private entity with or without consent of its users?

Neteller: No -- Neteller takes Data Protection and client privacy extremely seriously. Neteller uses the privileged information our clients share with us in a manner that is entirely consistent with the Privacy statement our clients agree to when establishing a Neteller account.

TOW: Neteller and United States users: are there any existing restrictions with any particular State and or do you foresee any upcoming restriction?

Neteller: Neteller applies a number of restrictions and limitations on members from various parts of the world, not specifically the US , based on the fraud risks that are prevalent at any given point of time. There are parts of the US, as there are parts of the world at large, that present a more significant fraud threat to Neteller and as such receive the focus of more stringent rules and restrictions than others.

TOW: New plans: which are Neteller new goals and future plans of expansion (if any) for North America?

Neteller: The immediate priority for NETeller is to develop a strong global payments platform through geographic expansion in Asia and Europe.

NETeller does plan to expand its North American operations and future news flow will update investors on the details. For example, NETeller's naturally growing involvement in the peer-to-peer online money transfer business will be further expanded. We are also examining certain types of B2B markets where two-way flows of funds are needed.

TOW: What can users and customers expect from Neteller in the future?

Neteller: NETeller has over one million members and is adding more than 2000 members daily. The demographics of NETeller's member base align closely with the desirable attributes of bank customers (i.e. well educated, good income levels with discretionary spending capability, etc.). It follows that this member base can be leveraged to achieve greater "wallet share" through the addition of financial products to NETeller's offering. Accordingly, it is expected that, in the long term, NETeller will evolve into Internet banking. This will, of course, require additional regulatory compliance measures in multiple jurisdictions.

cheers GF.

Huge amount of sells. Any views?

MS

NETeller issues 30.6 mln shares in placing, raises 85.68 mln stg UPDATE
AFX


(Updates with further detail)

LONDON (AFX) - NETeller PLC said it has successfully completed a placing of 3.6 mln shares which were sold by the company's founders, Corvina International Ltd and 1098853 Alberta ltd, reducing their stakes to 49.9 pct.

The company said the shares were placed for a total value of 85.68 mln stg at 280 pence each.

The placing shares were being sold in response to recent institutional demand.

NETeller added the placing will meet the company's intention of increasing the number of shares trading freely in the market and reduce the founders stake below 50 pct of the issued capital.

newsdesk@afxnews.com

ec

Its going up Mickey.

cheers GF.

See the above post Mickey , that accounts for the large trades at or around 280p.

NETeller
durlacher est year end 31/12/04 - ptp 29.5 m
rising to 40.7 m next year.
house broker canaccord currently revising estimates
will probably be higher if recent newsflow is correct,
forcasts have been raised over 20% in last 3 months.
forward pe only 10 extremly low for sector
eps growth estimated at 77%
put all that together along with good relative strength
and more liquidity after todays placing due to demand
this share looks to good to be true,we should be asking
how high can it go? 6-7-8 ???

regards HUSTLER

8

A word that Dil doesn't like but the only description I can put on this company and its prospects---mindboggling!! 10+++

Pretty impressive bounce going on here. Now that the placing is out of the way and liquidity improved there should be no problem with these getting back to 3.50 in double time imo.

Well done to any that added sub 3.00, I was greedy and waiting for 2.80 :-(

capa

I did capa and Im well pleased. Nice rise today aswell.

cheers GF.

Now 310p and looking good for a lot more.

cheers GF.

recovered to 3.10p today seems a bit punch drunk after all the activity
with placing earlier in the week which is only to be expected,
when it settles down it seems certain to resume it's upward path,
as all the fundamentals still look great.

regards HUSTLER

I thought it would go quiet until the next set of figures around March but this doesnt seem to be happening. Anyone know what the Deal Rumours are? I heard they may be given an Asian Gaming contract but only vague comment. Take note of PAY though the figures are out in December.

moneyplus

not always straight lines but sideways and upward will do nicely
if stats are right the only way is up in mid term.

regards HUSTLER

Yup and its gone nicely up since the placing.

cheers GF.

Play at an Online Casino using Various Payment Methods
10 November 2004

Online Casino gambling has flourished on the net in the past several years. The reason is because it offers people who enjoy casinos games a great way to play a few hands from the comfort of their own home. The other reason is with the advent of online technology; the software is advancing at a rapid rate and making the online casinos more and more realistic and exciting. The graphics and software allow the player to experience a virtual reality version of all their favorite casino games form the privacy of their own PC. Whats more, some of the newer features are making the experience even more realistic such as live dealer games and instant flash casinos. These games use webcams to transmit images of real live dealers that the player can communicate directly with using chat and messenger technology.

The issue of payment at the online casinos is a big one. In the early days players could make deposit and receive winnings directly through major credit cards and PayPal one of the internet biggest and most established online payment systems. But recently all this changed and PayPal as well as some of the major credit card companies stopped servicing the online casino industry directly. At first this caused quite a panic among online casinos and their members but the void was quickly filled but many new online payment methods that started to pop up on the net.

Some of the online payment methods that have gained popularity and a good reputation on the net include Neteller, 900Pay, Citadel, PrePaid ATM, credit card and many others. The online payments business has become so large that it has created a new industry that is dedicated almost completely to servicing the online casinos. Its hard to find a quality online casino that doesnt accept deposits from the top online payment companies. Some of the best online casinos have even started to offer bonus promotions to players that use specified methods of online payment.

This has made the process much easier for the player. Once they set up an account with an online payment company they can simply make deposits and receive their earnings automatically form the casino. These payment companies usually work in conjunction with the players bank account or credit card info. Its important to find the right payment method for your needs and to determine which methods is going to work best based on the games you like to play or the online casinos you play at. You can find plenty of information and reviews about the various online payment methods on sites like Online Casino Reports and on the net.



cheers GF.

Moving up yet again.

cheers GF.

When does it look greedy to stay in??? It's difficult to see this one falling back very much.

About 10

Just lifted from another board from a usually very reliable investor........................

From the Ft sat: NETeller, the online money payments provider, was up 1.4 per cent at 317p on rumours that a third quarter trading update next week would suggest bumper trading in the third quarter. Investors also hoped that it would contain news of joint ventures in Asia.

cheers GF.