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.

Hi Hustler,

excelent day but you like me know stocks dont move up in a straight line, at sometime we are going to see profit taking, but certainly not from me. Short, medium,long we are up.

By the way well done on dart, Im kicking myself.

cheers GF.

A few games by the MMs early doors and a bit of a shake, added.

Yes excelent 3rd quater results accompanied by a tree shake, more buy volume than sell volume. Some investors may have wished for news on Japanese tie ups, but this news may come later.

cheers GF.

From Killik morning notes.............

NETELLER 3rd Quarter Numbers



The recent placing down of founders stock at 280p appears to have cleared the air at NETeller, the leading online money transfer service provider which was recently granted FSA accreditation. The shares have bounced back to 330p following a positive trading update today but still look very cheap on paper.



The NETeller system works like a virtual wallet where customers (and they have over 1 million which is growing at over 2000 per day!) deposit, withdraw and transfer funds from their existing banking operations. This system is important as growth in member to member exchanges (like E-Bay) becomes more successful but money transfer security remains an issue. The FSA accreditation for NETeller should technically put them in a strong position with the merchants to promote the brand. Once locked in, online users do tend to prove loyal to brands to allow the business to grow strongly.



Revenue in the third quarter grew by 112% to 12 million to take the nine month number up to 30 million. Gross margin was 69% and this should prove stable. Overheads are flat allowing for a rapid growth in pre-tax profit. Therefore profit before tax in the third quarter was 7 million taking the year performance to date to 16.9 million.



Brokers are forecasting earnings profits of around 25 million for this year rising to 40 million for next to value the stock on 12x earnings. Given the potential, this looks an attractive buying opportunity.

cheers GF.

Durlachers BUY note this morning..........

NETeller continues its strong growth with confirmation that new members were added at an average
of 2,085 per day in the 3rd quarter. By the end of September NETeller had 1,060,167 members.
Investors should note that NETeller received its e-banking accreditation in mid October meaning the
3rd quarter growth was achieved without any European advertising.
Revenues to continue to show strong growth, rising to $21.9m against $10.3m in the same quarter
last year. Gross margins have been held at 69% by Canadian $ FOREX, offsetting any economies of
scale. Similarly the General and Admin charges were marginally ahead of our expectations due to
FOREX. However these modest increases in costs are marginal compared with the continued solid
growth in revenues and consequently pre-tax profits for the quarter which rose to $12.8m against
$5.4m a year ago.
Tax remains high with the move to Isle of Man servers expected to be completed by the beginning of
November, which will result in tax falling to a projected maximum of 10%.
The Shares look good value against the software sector and the market given the solid growth,
continued expansion of the gambling market and the significant opportunity offered by the Far-
Eastern markets which are not anticipated in our forecasts. A modest rating of 13 times for 2005 is an
extremely modest target for Neteller giving us a short term price target of 375p. On entry to the Far-
Eastern gambling markets we will raise our price targets considerably.

cheers GF.

Yes goldfinger, the thought of Asia, fair makes my eyes water.

capa

Yup same here.

GF.

I have a neteller account, which I set up shortly after going into the shares. There hardly seems to be a gaming site in the US that does not use them. They take 3.9% on any new deposits which seems hefty to me, and tie in the merchants at the other end by typically letting them take 1 or 1$ on the transfer back in to neteller.

Things seem to be moving their way given that mastercard do not allow repayments back to their cards, and Visa are getting twitchy about card fraud.

Down a bit today but I think this one deserves a new thread after it has done so well. Still holding and happy. MP

Hey Hawick,

This was a truly great spot - wish I had read it at the time!