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

good post Toogood
if a bid does come the sp will rise
if not with growth prospects and asia the sp
will also rise still seems a good bet
after all brokers have set a 12.00 target
should be plenty left to go yet
regards HUSTLER

I am not in on these shares but aint i right in saying that today is the last day to capitalise your capitals gains allowance for the tax year so many private investors dealing in reasonably substantial amounts (maybe not so in this share due to its large rise over the year) will be selling thus price stagnation and drops. I think you arent allowed to re-buy for 30 days (is that right?) so people who hav sold over the last 30 days will begin to come back in as of tomorrow morning sharp thus sending the price steadily upwards over the next month. I may be talking shite but that is how i understand it. Even shares that have fallen heavily over the last tax year could be getting sold off to offset the losses against large rises that investors have in other shares freeing the rises from capital gains tax. All small caps seemed to have drifted over the last month.

captainmerton

According to hubby you are basically right...unless you have a spouse/friend who buys them at the same time you sell ( so just dealing costs ) then pass them back next time, or whenever.

Regards Ruthie

Hi all
all the newspapers -Telegraph,Independent, Guardian, Times, FT have a mention of NLR and all but one say go for NLR. Here it comes!!!
p.s.anyone have any news on SBT - same industry and I am stuck with them with one massive loss ?

Added again at 663p and going for some more. Theres too much opposition in Evil Ks way now. He wont close as hes a stubborn old devil, but if we get the big volume back and the SP up it wont be long before hes adding to the price going northwards (him and his followers).

cheers GF.

Welcome back GF - I too have just topped up @656. Thanks to you I have also stuck my toe in the water with CFD's and bought a few NLR at 607 and SEO @ 15.25. So far so good

Have also topped up mine and the wifes ISA today with a view of buying NLR, SEO and MMG

Baza

Me and my big mouth - just dropped to 650 bid

Early morning volatility Baza, this should perk you up from Killik Brokers and I bet theres a lot more upgraders coming out aswell................

NETELLER - Tax rate disappoints but outlook remains robust

Neteller has delivered full-year revenue of $82.6m, marginally
ahead of expectations of about $80m, and net profit of $33.0m,
slightly off our expectation of $34.0m. The principal reason for the
$1m shortfall in net profit is a slower than expected fall in the
companys tax rate, from the third quarter 2004 level which was
33%, to the rate we expect for 2005 which should be closer to 10%.
The company has been reducing its tax rate by moving operations to
the Isle of Man. Average daily sign-ups in the fourth quarter of 2004
were 2,072 which is almost double the year-on-year figure .
Overall this is a good set of results, which show a fast-growing and
cash generative business. The key focus for Neteller in 2005 will be
to develop its position in Asia, using its March 3rd acquisition of Asian
payment processing company Quick Access as a platform for
expansion.
The shares are down 7.5p to 627.5p, perhaps unsurprising given the
headline earnings miss of $1m. We believe, however, that this miss
is a result of over-optimism with regard to the speed with which the
company could lower its tax rate in the midst of its move to the Isle
of Man. The outlook for the tax charge for 2005 remains an overall
level of 10%. The shares are currently trading at 15.5x prospective
earnings. Our Tactical Buy recommendation and 727p price target
remain.


cheers GF.

AND from the Independant today.........................

NETeller looks odds on to keep punters happy

The legal status of internet gambling in the US is cloudy, to say the least. It is explicitly outlawed in many states, others are trying to regulate and tax it, but the Federal government is taking a prohibitionist stance. And yet the numbers of Americans, in common with people across the world, who are punting on sports betting sites or playing internet poker has been growing exponentially.

The traditional banks won't touch their money, though, and NETeller has grown into a significant business (and a stock market hot property) as a result of this opportunity. It operates an e-wallet, ferrying money between the gambler and the betting website and taking on the task of verifying users' identities and checking for credit card fraud. An average of 1,800 people signed up to NETeller last year, and it made 45m from its cut of transactions. Of that, 25m was pre-tax profit, indicating just what a licence to print money this business is. We tipped the stock after its flotation last April at 197p and it had shot up to 640.5p yesterday.

NETeller shares have attracted the attention of short-sellers, inevitably, and it did get one black mark yesterday, having paid more tax than expected in the months before it moved its operations to the Isle of Man tax haven. This is small and historic when you consider that profit is expected to double this year, but nervous investors will want to make sure the company is keeping control of administrative costs.

The opportunities continue to outweigh these risks for investors with a bit of gambling money available. NETeller has just made an acquisition of a payments company in the Far East that will allow it to expand into gambling-mad China, where its expertise in cross-currency transactions puts it ahead of the local banks. Keep buying.

cheers GF.

AND from the FT......................

The three biggest drivers of internet payments are auctions, gambling and porn. While PayPal, the online payments company owned by Ebay, has the first category sewn up, Neteller dominates the second. It is signing up members at an increasing rate - an average 1,800 a day last year rising to 2,700 a day so far in 2005. For a banking sector looking for new ways to acquire customers, this could indeed look attractive and a joint venture is not inconceivable, especially as PayPal and GE Capital have already teamed up to offer consumer credit deals. Despite their strong run so far, the shares still trade at just under 19 times 2005 earnings estimates. Given Neteller's strong growth story, they may still have further to go.

cheers GF.

Nice reading GF - now all we need is a little patience - the punters will do the rest

Baza

Made a nice profit on this one the last time. Am looking forward to making a nice one again. Let the dust settle and we should be heading north again.

Cheers

B2B

Thought there would be more interest after all the good updates this morning.

cheeers GF.

Yes GF i was expecting the price to start another run up,any view on this ?? JB..

Patience...

Yes but they have been quiet for a month now JB..

I think were waiting for these presentations to US investors. Lets hope a few funds buy a cart load of stock, sorry make that a shed load, sorry make that an hanger load.

cheers GF.

When are the presentations GF?

Supposed to be after the 5th of April, thats all the news I received from Killik.

Evil as just given out his wednesday update and recognises the NLR results were good but says we knew they were going to be anyway. Says competition is coming along. (doesnt say who it is as usual)ENDS.

I dont think it will take much to get him out of this one now. Hes just relying on B/Board fear and panic. If we get a good day for NLR with big volume and I feel he'l be out.

Even Winnie said he was bullish and Zak Mir also on the results. So its not as if his comrades are fully behind him.

cheers GF.

Thanks. I hope the good news doesn't come to soon, I want to buy some more, but won't have the money till next week.