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

Hustler: Super post. Also primarily an AIM player. You see many threads where holders are wondering what is wrong with their stock. But it is the AIM index down 14% - does that include the 1.5% this morning? Its really a general correction. However, it may go on because the charts are generally negative. NLR may trade in the 450p to 550p band for a while yet. Those prepared to buy and tuck away until the Autumn will come out well - little doubt.

Eric

Hi Eric
The main indices performed well today including the teckmark.
Only the Aim and Smallcaps lagged behind closing just ahead
the Dow and Nas are only just ahead at time of post,
so we have to be vigilant again tomorrow.
Hope the post earlier today puts in perspective what is
happening to the markets in general.

ps for what it's worth - NLR - British Bulls have posted
a Buy Confirmed signal tonight, i don't generally follow them
but any good signal is welcome at present.
All the best
HUSTLER

Yes some good posts Hustler. Heres hoping we are positive again Wednesday.

cheers GF.

http://tinyurl.com/6s3hy

Elric Lloyd-Langton
April 3, 2005

NETeller (NLR) has been a top ten feature for lemming, since we featured it at 193p in early 2004,
when we made a case which suggested it would benefit from the on-line gaming boom through its
expertise in e-cash transfers between the gamblers and the casinos, particularly where the
gamblers bank or card issuer do not like their cards to be used for on-line gambling. There is
another beneficial side to NETeller; growing abuse related to credit card transactions on-line,
particularly where the gambler claims his/her card has been used fraudulently, usually after a
heavy loss. The verification measures put in place by NETeller make them an attractive cash portal
for casinos and the gambler seeking to hide his/her habits from the prying eyes of their banks. In
deed, this has been the case, which if as predicted by pundits in the US, credit cards will be banned
for all on-line gambling in many states. However, this argument is not a new one, this has been
rumbling on for years.

Dirty shorts
The shares are off their high of 757p on the back of profit taking and what I believe are unwise
short positions being opened recently by EK and no doubt, one or two of his followers. A
combination of these sent the shares tumbling to 585p, before the shares gained some ground,
closing 636p on Friday, still some 230% up on our 193p. EK`s case for his short appears to be
concerns regarding competition from similar companies, of which they are numerous; these include,
click2play, payspark, ECO and e-cash direct, the latter a subsidiary of Cryptologic, (another
beneficiary of on on-line gambling craze) There's nothing new about this competition, its was there
before NETeller listed in London in April 2004. Since then NETeller have continued to make great
progress in terms of increased customer base and increased revenues. NETeller`s main rival
PayPal, could offer serious competition to NETeller, however, e-Bay owner of PayPal refuses to
service the gaming industry. Firepay and Click2pay do not offering instant indemnified funds to
merchants.

cheers GF.

Nice to see this one positive again.

cheers GF.

Looking strong again like it did yesterday afternoon.

cheers GF.

It does indeed goldfinger I'm glad i took the plunge yesterday and brought in. I missed out on this one the last time but was amazed i got the chance to get in so cheap. I read the analysts reports 875p price target thats with build in conservative estimated taken into consideration competition, exchange rates and potentially retrictive US regulation (Which hopefully will wilt at the the WTO power)

The shorters have had their fun with this one and feel confident to add more on any short lived weakness..........

Well done BB, another good day and this one is certainly in form.

cheers GF.

Q1 results due 10th may,can some one confirm,if so than what numbers do we expect from this company.

Can anyone please explain the following trade entries:

@ 11.52 am price 540 to buy 538 to sell
next entry
@ 8.39 am price 437 qty 346 trade type L

at no time today the price to buy or sell was around 437 today???
thanks
p/271

Q1 results out,and they read well,,i was expecting a better rise in the sp,a little disappionting..JB..

Jimmy, I think it's going pretty well considering we touched 460 recently and are now back at 560. I bought with poor timing on the way down at 550 and it's come back again quickly. I know Evolution said it's worth 725p, and others have called it cheap at the current price but there's a lot trading it purely on TA who take no notice of fundamentals.

The results are excellent and I'm hoping to see some more comment on this thread from those better qualified in NLR analysis than me. It does seem like stockdog's retracement forecast has been very accurate so I am looking forward to his next diagnosis.

Cheers, Madison

Anyone seen GF?

Im here madison mate, just come back from a working holiday of 4 days all paid for by a client. (excuse for a booze up)

What sticks out for me in the results is the following..............

Gross margin

Gross margin improved to 73% in the first quarter of 2005. Bad debts fell as a
% of sales to 13% from the historic 14% of sales resulting in an improved margin
for the quarter. The Company also obtained operating leverage off the increased
revenue to reduce direct costs as a percentage of sales.ENDS.

Well Evil K wont be very pleased at the increase in margins as this is the area he says these so called competitors will attack NLR, Not so Evil old boy, NLR are indeed increasing their margins and also through efficiency measures cutting down the rate of bad debt.

cheers GF.

Madison, my post was at 9.30 and since then it it has done a little better,,i suppose i was waiting for the results and expecting fireworks, but can't complain in the current market. Yes where is everyone else ,lets have some comment from the experts..JB..

I was thinking the same,where's GF ??

Hi GF, good to see you back!

Cheers, Madison

Cheers Mates.

GF.

From CityWire................

Tip Update: Neteller enjoys further strong growth
Published: 11:40 Tuesday 10 May 2005

By: Graeme Davies, Investment Correspondent Neteller says it could be a bid target:
12:25 Tue 05 April 2005 read

Shares in Citywire tip Neteller are back in favour after the online money transfer company issued a strong set of first quarter results which confirm its rapid growth.

In the first quarter of the year Neteller (NLR) doubled its daily receipts to $2.9 million (1.54 million) and grew revenues by 121% to $34.2 million. Pre-tax profits surged by 136% to $18.2 million.

Neteller, which offers fully indemnified money transfers between members' 'e-wallets' and merchants who support its technology, has grown particularly quickly on the back of the explosion in online gaming and in particular poker.

The 665 million company is signing up new members at a rapid rate. At the end of the first quarter it was signing up 2,862 a day, giving it a total of 1.5 million members.

Neteller has stolen a march on rivals such as Paypal by offering its services to the online gaming industry. It differentiates itself from others serving the gaming industry by offering fully indemnified payments due to the strict identity criteria required to qualify for a Neteller e-wallet. It also offers money transfer services and has been registered to operate as a bank in the UK.

The strength of Neteller's business is reflected in the fact that bad debts as a percentage of sales fell from 14% to 13% in the first quarter. As the company grows, economies of scale are also becoming evident with gross margin at 73% in the first quarter.

Neteller is now domiciled in the Isle of Man and has effectively reduced its tax rate from 33% to 10%.

The company has designs on becoming a global internet bank and in March it acquired Macau-based credit card payments processing company Quick Access to give it a foothold in Asia, where it expects to make more acquisitions.

Citywire tipped Neteller in February at 526.5p and watched its share price surge as high as 758p before profit taking hit it hard, taking it back below the 500p level recently. However today's solid first quarter update has pushed it 13p or 2.4% higher to 556p and should instil some confidence in investors.

We remain fans of Neteller and believe its growth story will carry the shares higher as its development progresses. Growth will not always be so spectacular but in the short term it should continue to replicate figures like today's.

cheers GF.

Nice one GF..JB..

MMs playing games with the SP again. Going to add. Spread only 1p.

Cheers GF.

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

Neteller



Neteller

Tactical BUY

Price: 552p (+9p)

Price Target: 727p

Risk rating: 8

p/e: 14.9

Net dividend yield: 0%

Market cap: 661m

(p/e and yield are prospective)

Since the end of March the AIM index has fallen by about 10%, with Neteller, which is the fourth largest constituent, down 9% to the current 552p. This mornings 9p rise is caused by a Q1 update which shows that its operations are growing in line with expectations.

Revenue has risen by 121% year-on-year to $34.2m, and profit before tax is up 136% to $18.2m. The company has confirmed that its move to the Isle of Man is now complete for tax purposes, and the resulting fall in the blended tax rate to 10% means that earnings per share have risen an impressive 158% year-on-year.

Neteller is currently trading at 14.9x prospective earnings, on the basis of a jump in eps from 31.5p for December 2005 to 49p in December 2006. The shares trade at a modest discount to Sportingbet (which happens to be the second largest in the AIM index), which is valued at 17x prospective earnings. Sportingbet benefits from a longer stock market track record, and has built up a supportive base of long-term investors in London. It will take time for Neteller to build up the same quality of ownership, and the relative immaturity of its business model will put off some investors. However, we believe the resulting valuation of the shares, which falls to 11.4x our December 2006 estimate of 49p, is too low. 2005 news flow should include the announcement of a deal or deals with joint venture banking partners.

cheers GF.