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

One aspect that no one has mentioned but which becomes increasingly interesting to me is that Neteller could itself become a target for a bank or even the larger gaming sites such as partygaming.
Ebay ended up buying PayPal (it's largest online cash transaction provider) so it is not unheard of.
The partygaming results this week should boost the whole online gaming sector plus you have the prospect of it entering the FTSE 100 too.
Some of it will rub off on Neteller and FireOne.
It's gonna be a good week (you heard it here first !!0

Mono

;o)

All looking good for NLR , i'm staying in this time ,i can't see it being shorted again, this should have a good run in the coming months,,,and to think, i thought i was clever buying at 245 and selling for 380 ..Cheers .JB.

dorothy - please can you post the text of the scsw piece?

Feeling rather smug at the moment. Got my first ever double bagger..... with NLR bought at 444. Got lots of other tranches of this, so here's hoping they can double in value too.

Cheers to all who are holding. The graph looks very good.

B2B

Over 900p now and looking good.

Hi All
No input today from the yanks, closed all day.
But we still broke new ground and a new high not a bad start to
the week 9.00 for the first time.10.00 first target only 12% away.
Results last week when digested should continue to fuel the rocket.
As for the shorters i don't see them being around for a while unless
they want to get burnt.
Had a long chat with my broker on friday and he informed me
Evil K has been warned off certain targets, not this one i must
stress. but reading between the lines the shifters have had a gut
full of him, and about time.
All the best
HUSTLER

Wow,, talk about bash the whole sector just because PRTY arn't up to scratch..

yeah, pretty savage response...

The annoying thing is that PRTY's ability to attract new customers is slowing because they are losing out to other gaming sites.
However NeTeller (and FireOne) should be relatively unaffected as the punters will still need to use them to transact money in and out of their accounts.

Good comments Supermono
Just as we were nicely placed with cracking results.
It goes to show how the markets can react to a hint
of bad news the whole sector is being hit.
When the dust settles the marketmakers should see us
as good value as we are covering a very wide network,
and will pick up the players on many of the sites.
All the best
HUSTLER

Well overdone this , got some more at around 800p ,this will recover faster than the gaming company's IMHO...

Snap Jimmy. Too smug yesterday about my first ever double bagger .... Serves me right. However like you I can't see this as being anything other than a buying opportunity. Couldn't make 800 but got in at 809. Smiling at the moment. Hope to have an even bigger smile at 4.30

B2B

b2b i was sitting on a large profit last night too, not to know this was going to happen, as HUSTLER said results were cracking, and for me nothing has changed,,may have to wait a little longer for that 10 ...

Have watched this with envy all the way up. Lots of cash and satisfactory profits, plus good growth outlook despite todays coments on the gaming sector. Bit of a slowdown should enable them to get on top of admin systems (in particular re bad debts, which are still too high). Better systems might be found in a clearing bank and NLR could be a tasty buy for one of them. Fundamentals still look Ok to me and bid prospects in for nowt. Bought on the drop at just over 8.

relieved you're all topping up--I'd like to but no funds available! notice the sells are small amounts but the buys quite chunky.

What a day !!!
The strength of the share price after hitting sub 800p earlier suggests people have realised that NLR prospects are largely unaffected by PartyGaming woes.
We should move on back towards 900p tomorrow (and FireOne back towards 475p too).
Haven't got the heart to tell the PartyGaming boys that their share is on it's way to sub 90p though !!!
However you heard it here first.

;o)

Here, here, supermono....

This could be right back where it was on monday at this rate..Nice

But where would it be if it weren't for PRTY? Still it gave several people a chance to top up at 8. I would have done but all available cash went into BFC.

From today's Shares mag:

NETeller is branching out of the online money transfer business
and will launch credit card and loan products next year, says
executive vice president Dale Johnson.
According to Johnson, the firm is holding discussions with a number
of UK-based banks about launching NETeller-branded bank accounts,
credit cards, loans and other financial services products. He says that if
it can exploit is customer base which consists primarily of young
workers with lots of disposable income it should significantly boost
profits.
NETeller, tipped by Shares as a Play of the Week last November,
expects to sign a deal with a bank before the end of the year and
products to be available from the second quarter of 2006.
Johnson says: Our observation is that a large part of bank
profitability is derived from cards. It occurred to us that with our
significant and rapidly expanding customer base with a highly desired
profile for the banks a partnership with a bank will provide us with the
opportunity to offer cards and share in that profitability.
Johnsons remarks follow news that NETeller more than doubled its
customer base to 1.7 million over the year to 30 June. Additionally, the
firm says the number of online merchants using its systems went up
21.4% to 1700 over the first half, following the addition of companies
such as Betfair and Expekt.com.
NETeller is upgrading its money transfer systems over the next 12
months and Johnson promises that there will be minimal disruption
for users.

Shares says: Expect even stronger growth once it starts
selling financial services products.

by: Geoff Ho