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

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.

Thanks GF, nice to see you back on here..

GF

EK says competition is coming along. I see SEA in the frame, what do you think.

Good to see you back. Hope the hols went well, go anywhere nice?

MS

Do we expect good start to the day tomorrow after a good close today with heavy trades at the close of trade today,looks as though the momentum is gathering pace for next upward trend.

Thanks chaps, just a break in Spain. SEA Mickey yes I noticed that moving today, problem is if Ive worked it out right very quickly its still rather expensive on a rolling P/E of around 29.

As for NLR I just dont accept this story line from Evil K, as I have said before hes using fear to panic out holders and using the historic P/E of 40 but the prospective P/E is between 13 and 15.5 for the next years budgeted results, from brokers so far. Add on any Asian deals and we are talking a lot cheaper.

His case is very weak indeed on this one as is his case on MMG. Dont be fooled.

cheers GF.

Im losing patience..

Looks like others are too Jimmy. I dont really think its just this one though. Looks like the whole market is in correction mode. I just hope we dont get those sideway markets of last year.

cheers GF.

Agreed GF
Correction is rife i monitor over 150 stocks
weekly and over the last 5 weeks it has been commonplace
for the majority of the highest risers to fall back
somewhere between 7 - 15% especially on the smaller markets,
even though the indexes do not show this overall.
NETeller is a victim along with a lot of others,
as you rightly say we hope the market doesn't now crab sideways
for to long. However mid term the best growth stocks on reasonable
ratings will still outpreform the market given time.

regards HUSTLER

Agreed Hustler thanks for the above data. Helps you understand whats happening to the market and the small caps in paticular.

cheers GF.

Thanks chaps,..JB

It is not often that you get a stock to go exactly the way you want it, but playing NETeller has been a CFD (contracts for difference) trader's dream.

The volatility has been so extreme that it has presented several opportunities to go long (and short) with double-digit returns for nimble investors.

Originally mentioned as a long opportunity in early February at 510p, the stock (NLR) has risen spectacularly, hitting a high of 757p before profit-taking combined with short-selling brought the stock down to earth. The 'e-wallet' company, which specialises in transferring money between a gambler and a betting website, reported its finals last Tuesday. It highlighted that the average daily sign-up of new customers had increased from 910 to 1,821 and that its total number of members' up until the end of last year was 1.25 million. Revenue increased 130% to 45 million and earnings per share (EPS) came in at 15p putting the stock on a demanding historic multiple of 43. However, do not let the historic rating put you off, as the story going forward is quite compelling.

Three years ago, revenue came exclusively from online gambling. Now, about 15% of revenue is generated by other activities. Chief executive Gord Herman wants the company to be a money transfer business similar to that of Western Union, as well as offering other banking products to its customers. He had already made significant progress when the Financial Services Authority (FSA) granted NETeller authority to operate as a bank in the UK. On top of this, NETeller made an acquisition of a Macau-based payments company, which will enable it to cater for the gambling fanatics of China.

The stock trades on a forward 2007 multiple of 14.75, which is too cheap for a company that is delivering on its results. Durlacher, the stockbroker, has a price target of 12.00. Modest long positions should be mulled over at the current price and any weakness in the region of the mid 500's should be pounced on.

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