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NTWK - NetSol Technologies - Page 8

post #141 of 162

Allright Token, I give up. You can have my shares for $5. If you act within the next 2 days I will give them to you for the great price of $3.50, considering you were predicting $5 soon you will still have a decent upside and I can repurchase my long position after their cyclically lower 1st Qtr earnings drop it a little more.

post #142 of 162

NTWK $2.14...Up 6% AH on news that the CEO bought another block of 100,000 shares at $1.97 today 2/16/2011. In addition, the company recently reported strong 2Q 2011 recently and reiterated it strong 20c/share net income guidance.

Here is the link showing NTWK's CEO Najeeb GFhauri insider purchase today. The link also shows the 1.4 million shares that he and his two co-founder brothers purchased in 2010...and many, many more before that. Also notice that that they've never sold a share:

http://www.secform4.com/insider-trading/1039280.htm

Here is the link for the 2Q 2011 financial report:

http://finance.yahoo.com/news/NetSol-Technologies-Announces-pz-2443662836.html?x=0&.v=1

 

The link below is a Money/CNN report on significant institutional buying of NTWK shares relative to peers . The numbers in the report are as of 12/31/2010, but daily institutional buying reports this year show all buys and no sells. 2011 YTD institutions have added over 4 million more shares!!:

http://money.cnn.com/quote/shareholders/shareholders.html?symb=NTWK&subView=institutional


 ===>>> Target: $4+ after 3Q 2011 earnings in May (read why below)  

NTWK reported 4c/share on 10% 2Q 2011 revenue growth last week and reiterated its 15 - 20c/share net income for fiscal 2011. Revenue exceeded analyst's expectations, and the company guided for sequentially stronger 3Q and 4Q.

As it occurs often, there was an initial sell-off despite the strong earnings/guidance. The stock is bouncing back up and could explode upwards on any news.

Money/CNN reported this week that institutions increased their NTWK holdings by over 16% recently, far surpassing most peers in the IT sector.

 
Recent Developments:  

- CEO Jajeeb Ghauri buys 100,000 more shares in the open market on 2/16/2011. That is in addition to 1.4 million shares purchased by him and his two brothers in 2010

- Exponential growth in China/Asia. Moving into larger HQ in Beijing and Bangkok

- 2011 Guidance Reiterated: 20c/share net income on 20%+ revenue growth

- in September 2010 NTWK signed a global alliance with Mercedes Benz...9 new countries were assigned initially for software implementation. Revenues will start coming in this quarter

- Added over 100 software engineers/programmers the last 3 months

- Expanding Beijing and Bangkok offices to satisfy explosive China and South East Asia growth

- On 1/14/2011 Ativo Research (Does stock research for Fidelity investments) rated NTWK "Strong Buy" with an upper target of > $5/share

- Insider bought 1.4 Million Shares in 2010

- Launched Atheeb Netsol JV with Royal Saudi Family

- Will participate in SAP's EcoHub to introduce hundreds of potential customers its SAP-certified smartOCI search engine

Other Highlights:

- Global US-based global software company
- 15 - 20c/share net income in 2011 on double-digit revenue growth
- Gross margins 65%+
- 5-year average growth of 20%+/yer per CC comments
- NTWK controls 90% of the Chinese auto leasing/financing software market
- 0ver 20 Fortune 100 customers including Ford, BMW, GM, Mercedes Benz, Toyota, Nissan, Chase, Citi, PNB Paribas, Deutsche Bank, GE Capital, Cisco Capital, etc.
- New SAP-approved procurement search engine built on "cloud computing" architecture will be a significant revenue engine
- Front runner in Billion-dollar in IT/software infrastructure and military mega-projects in Pakistan
- New JV in Saudi Arabia with Atheeb Group ran by the Royal - The Street Com Video last week says NTWK is best under-5$ stock
- US-based software company with offices in CA, Beijing/China, Australia, Thailand, the UK, Singapore, Dubai, Saudi Arabia, and Pakistan
- Buyout candidate, During the 4Q 2010 earnings CC the CEO acknowledged that there are always suitors circling around. He stated categorically that he will only consider offers North of $8

post #143 of 162

I am having a great great time

post #144 of 162

Despite the obvious pumpers and spam surrounding this stock, I think it's a legit company with serious growth ahead.  I got in at 1.74 today.  

post #145 of 162

49er, agreed. Token's research is actually pretty spot on, I just don't like predictions and pumping around a stock I'm holding long. Those aren't the type of buyers I want getting into something I'm holding, if I'm trading it then fine jump on the bandwagon until it breaks.

 

Great company, lots of upside still. Picked more yesterday at $1.73, actually hoping for another drop before the next Q release. The Pakistan SEC negative response wasn't great, but just means they'll have to partner to get in.

post #146 of 162

NTWK $1.74 Moving up Ahead of 3Q 2011 Earnings in 2 Weeks...Insiders buy 2M Shares....Preview of Upcoming 3Q Earnings Based on 2Q 2011 that was reported on 2/12/2011.


==> NOTE - HUGE INSIDER BUYING AFTER 2Q 2011:

Subsequent to the 2Q release ON 2/12/2011, the 3 founding brothers bought 500,000 shares to add to 1.5 million shares they've purchased since May 2010.

The last purchase made by NTWK's CEO was on 2/16/2011 for 100,000 shares at $1.97 purchased in the open market.


===> 2Q 2011 SUMMARY (Source: 2/10/2011 earnings release/CC transcript/filings):


- NTWK had one of the strongest quarters in its history; highlighted by continued revenue growth, increased profitability, and improved margins.

- Demand from both new and repeat customers remained robust during the quarter, and

- The bottom line also improved as NetSol continued to implement cost-management measures and streamline business processes.

Following are some of the financial highlights:

- Revenues for the second quarter of fiscal year 2011 increased by 9.5% year-over-year to $10.4 million, up from $9.5 million in the second quarter of fiscal 2010.

- License fees totaled $3.1 million or 30.0% of total revenues.

- Maintenance fees totaled $2.0 million or 19.4% of total revenues.

- Service fees totaled $5.3 million or 50.6% of total revenues.

- Net income attributable to NetSol for the second quarter increased to $1.9 million, compared with a net loss of $0.4 million for the second quarter of fiscal 2010.

- Gross margin for the second quarter was 66.5% based on gross profit of $6.9 million, compared with a 62.2% margin and gross profit of $5.9 million in the same period last year.

- Operating income and operating margin for the second quarter were $3.9 million and 37.4%, respectively, compared to $1.7 million and 17.8%, respectively, in the second quarter of fiscal 2010.

- EBITDA totaled $3.2 million or $0.06 per diluted share, versus EBITDA of $0.9 million, or $0.03 per diluted share, in the year-ago period.

- Earnings per diluted share were $0.04 for the quarter, compared with a loss per share of $0.01 in the same period a year ago.

- 3Q11 revenue and net income will be sequentially stronger than 2Q 2011

GUIDANCE:

The company expects sequentially stronger quarters ahead and reiterates its guidance of up to 20c/share net income on 15% - 20% revenue growth for 2011


==> NOTE: 3Q 2011 earnings release expected during the first week of May, 2011. The company will present at an investors' company next Wednesday. It is likely that the pre-earnings rally will start soon....most likely today.  I predict $2.5 to $3.5 before/after earnings. Remember, NTWK traded at $2.4 before the Egypt/Libya/Japan-caused manipulation.


OTHER NTWK HIGHLIGHTS TO KEEP IN MIND:


Besides being a US-based software company that has become No. 1 in China in its niche market, these are other NTWK Highlights that you might want to consider:


- Consistently profitable US-based global software company with 8 offices worldwide (US, China, Australia, UK, Pakistan, Singapore, Thailand, Saudi Arabia)

- Trading at 8 PE and 1.8 times sales

- NTWK has over 30 Fortune 100 loyal customers. Never lost a customer. None of the customers is over 5% of the total revenues

- partial customer list: CitiGroup, Mercedes Benz, BMW, Volvo, Ford, GE Capital, Cisco Capital, Paribas, GMAC, Toyota, Nissan, Hyundai, BYD, SANY Corp. China, etc.

- Revenues are increasing at double digit rates,

- 5 consecutive quarters of profitability,

- 20c/share net income

- Double-digit growth rates

- No. 1 in China in its niche market

- Global alliances with Mercedes Benz and SANY Corp of China, and others in the pipeline

- A true cloud computing play with most of its new products built on SaaS

- Strong relations with SAP, ORCL, MSFT.

- its SAP-approved smartOCI procurement search catalog software built on SaaS is being tested by several existing and prospective customers

- Strong balance sheet

- Increasing recurrent revenues. With every license they sell a lucrative 5-year service and maintenance agreement

When asked about being an acquisition target the CEO said that they are constantly being approached by potential bidders but he said that he will only talk to them when the offers are North of $8/share (source 4Q 2010 transcript)

 

Radar NTWK

post #147 of 162

NTWK $1.75..... BREAKOUT ALERT....RECORD EARNINGS EXPECTED TOMORROW  MAY 10,2011....CURRENT PE = 8....HUGE INSIDER/INSTITUTIONAL  BUYING.

NTWK is UP 4% on higher than normal volume today. NTWK is a fast growing global consistently profitable cloud computing play headquartered in the US.

A SeekingAlpha author named NTWK one of the top 10 Momentum Earnings Winners this week:

http://seekingalpha.com/article/266958-10-momentum-movers-reporting-earnings-next-week

Record earnings and strong/bullish guidance are expected tomorrow 5/10/2011 because of results of subsidiaries and comments made by the CEO on a 4/20/2011 investors' presentation. This will be the 5th consecutive profitable quarter. NTWK was trading North of $2.3 before the Egypt/Libya/Japan three-headed monster.

Earnings estimates for tomorrow's earnings and likely CC comments from hints at a 4/20/2011 CEO presentation and the earnings results of its largest subsidiary (see bottom of post):

- 25% revenue increase Q/Q

- 10%+ sequential revenue growth.

- Net income about 5 or 6c/share.

- Strong guidance forward calling for strong sequential revenue and net income growth (because of the several multi-million wins announced this quarter)

- Bullish guidance with emphasis on entry in several verticals like supply chain, lending/banking

- Bullish about the entries into the cloud computing market with Lease Pak SaaS, smartOCI, etc.

- Bullish about the Atheeb Netsol prospects in Saudi Arabia and the rest of the Middle East and Africa

- Renewed growth in North America and Europe with Lease Pak Saas

- Entry into Latin America

- Update on the new China subsidiary (NTWK controls 90% of the leasing/financing software market in China and now it is entering into other verticals)

The company will hold its annual meeting also tomorrow at New York's Harvard Club. This is the first time that the company has held its annual meeting the same day of an earnings report ....and in New York City of all places.


NTWK HIGHLIGHTS:


- 20c/share net income guidance reiterated 3 weeks ago

- Gross margins approaching 70%%

- US-based cloud computing global software company trading at 8 PE and growing profitably at a rate of over 20%/year

- Insiders have purchased over 2 million shares since May 2010 a,d 500,000 shares in the first quarter of 2011. The CEO bought 100,000 shares on February 16, 2011 at $1.99/share.

- Institutions have added over 6 million shares in a year

- Controls over 90% China market share of auto leasing/financing software. Increasing China manpower by 100% to handle accelerated growth in several verticals.

- Consistently profitable US-based global software company with 8 offices worldwide (US, China, Australia, UK, Pakistan, Singapore, Thailand, Saudi Arabia)

- Partial customer list: CitiGroup, Mercedes Benz, BMW, Volvo, Ford, GE Capital, Cisco Capital, Paribas, GMAC, Toyota, Nissan, Hyundai, BYD, SANY Corp. China, etc.

- Global alliances with Mercedes Benz and SANY Corp of China, and others in the pipeline

- A true cloud computing play with most of its new products built on SaaS

- NTWK's SAP-approved smartOCI procurement search catalog software built on SaaS is being tested by several existing and prospective customers

- Increasing recurrent revenues. With every license they sell a lucrative 5-year service and maintenance agreement

When asked about being an acquisition target the CEO said that they are constantly being approached by potential bidders but he said that he will only talk to them when the offers are North of $8/share (source 4Q 2010 transcript)


PREVIEW OF 5/10/2011 EARNINGS - LARGEST SUBSIDIARY RECORD EARNINGS REPORTED MAY 2, 2011:

- 25.44% revenue increase to US $7.21 million from US $5.75.million reported for 3rd Quarter 2009-10.

- Gross profit rose 21.42% to US $4.65 million), as compared to US $3.82 million reported in the corresponding period.

- Net income increased 34.13% over the corresponding quarter 2009-10. Rating :

ABOUT NTWK:

NetSol Technologies, Inc. (Nasdaq:NTWK - News) (Nasdaq Dubai:NTWK) is a worldwide provider of global IT and enterprise application solutions. Since its inception in 1995, NetSol has used its BestShoring(TM) practices and highly experienced resources in analysis, development, quality assurance, and implementation to deliver high-quality, cost-effective solutions. Specialized by industry, these product and services offerings include credit and finance portfolio management systems, SAP consulting and services, custom development, systems integration, and technical services for the global Financial, Leasing, Insurance, Energy, and Technology markets. NetSol's commitment to quality is demonstrated by its achievement of the ISO 9001, ISO 20000, ISO 27001, and SEI (Software Engineering Institute) CMMI (Capability Maturity Model) Maturity Level 5 assessments, a distinction shared by 162 companies worldwide. NetSol Technologies' clients include Fortune 500 manufacturers, global automakers, financial institutions, utilities, technology providers, and government agencies. Headquartered in Calabasas, California, NetSol Technologies has operations and offices in Alameda, Adelaide, Bangkok, Beijing, Karachi, Lahore, London, and Riyadh.

post #148 of 162

NTWK Reports record revenues and 6c/share net income. Raises net income guidance to 23c/share. 3rd consecutive quarter of sequentially stronger revenue and net income grwoth. Monster 4 Quarter expected because of raised guidance

 

NetSol Technologies Announces Third Quarter Fiscal 2011 Financial Results, Posts Record Revenues

 

Press Release Source: NetSol Technologies, Inc. On Tuesday May 10, 2011, 6:50 am EDT

 

- Revenues were $10.8M, up 21.3% from $8.9M in 3QFY10

 

- Net Income was $3.3M, up 463.4% from $0.6M in 3QFY10

 

- GAAP Earnings per Share were $0.06, up from $0.02 in 3QFY10

 

- Gross margin was 62.6%, up from 61.3% in 3QFY10

 

- Company raises full-year earnings guidance to $0.18-$0.23 per diluted share

 

CALABASAS, Calif., May 10, 2011 (GLOBE NEWSWIRE) -- NetSol Technologies, Inc. ("NetSol" or the "Company") (Nasdaq:NTWK - News) (Nasdaq Dubai: NTWK), a U.S. corporation providing global business services and enterprise application solutions to private and public sector organizations worldwide, today announced its financial results for the third fiscal quarter ended March 31, 2011. The Company posted record revenues of $10.8 million and quarterly net income of $3.3 million, or $0.06 per diluted share. These results compare to revenue of $8.9 million and quarterly net income of $0.6 million, or $0.02 per diluted share, for the same period last year. Summary financial data is provided below:

 

Third Quarter Fiscal 2011 Financial Highlights

 

  • Revenues for the third quarter of fiscal year 2011 increased by 21.3% year-over-year to $10.8 million, up from $8.9 million in the third quarter of fiscal 2010.
  • License fees totaled $3.6 million or 33.3% of total revenues.
  • Maintenance fees totaled $1.9 million or 17.6% of total revenues.
  • Service fees totaled $5.3 million or 49.1% of total revenues.
  • Net income attributable to NetSol for the third quarter increased to $3.3 million, up from $0.6 million for the third quarter of fiscal 2010.
  • Gross margin for the third quarter was 62.6% based on gross profit of $6.8 million, compared with a 61.3% margin and gross profit of $5.5 million in the same period last year.
  • Operating income and operating margin for the third quarter were $4.8 million and 44.4%, respectively, compared to $2.6 million and 29.2%, respectively, in the third quarter of fiscal 2010.
  • EBITDA totaled $4.6 million or $0.09 per diluted share, versus EBITDA of $1.8 million, or $0.05 per diluted share, in the year-ago period.
  • Earnings per diluted share were $0.06 for the quarter, compared with $0.02 per diluted share in the same period a year ago.
  •  

Nine Months Financial Highlights

  • Revenue for the nine months ended March 31, 2011 increased by 13.7% year-over-year to $29.7 million, up from $26.1 million for the nine months ended March 31, 2010.
  • Net income attributable to NetSol for the first nine months of fiscal 2011 increased to $6.8 million, compared with a net loss of $0.1 million for the nine months ended March 31, 2010.
  • Gross margin for the nine months ended March 31, 2011 was 63.8% based on gross profit of $18.9 million, up from a 59.3% margin and gross profit of $15.5 million in the same period last year.
  • Operating income and operating margin for the nine months ended March 31, 2011 were $10.7 million and 36.0%, respectively, compared to operating income of $5.4 million and a 20.7% operating margin for the same period last year.
  • EBITDA totaled $10.5 million or $0.22 per diluted share, versus EBITDA of $3.8 million, or $0.11 per diluted share, in the year-ago period.
  • Earnings per diluted share were $0.14 for the nine-month period, compared with a loss per diluted share of $0.004 in the same period a year ago.
  •  

Najeeb Ghauri, Chairman and CEO of NetSol Technologies, commented, "We are very pleased to report double-digit sales growth, resulting in record quarterly revenue performance. Our strong revenues in combination with continued margin improvement has produced the fifth consecutive quarter of profitability for NetSol.In North America, we are gaining additional orders from existing clients while building a healthy pipeline of new customers. We have nearly completed the formation of our new China subsidiary, while our existing office in Beijing has more than doubled its office space and staffing level. At the same time, we are steadily making inroads into promising markets such as the Kingdom of Saudi Arabia and Southeast Asia, laying the foundation to replicate the success we've already accomplished in China and Thailand. We also plan to extend our footprint into Latin America, which is demonstrating great IT market potential, as we envision exciting new opportunities for our core flagship NFS platform."

 

Mr. Ghauri continued, "With our unique technological and delivery capabilities and the increasing worldwide demand for IT solutions, we believe that our position in the global IT market will grow even stronger in the years ahead. We will continue to invest in our growth, our resources, our infrastructure, and enhance our net assets to become a much stronger global IT company with the ability to participate in higher-value projects and work with larger customers."

 

Third Quarter Fiscal 2011 Results of Operations

 

Revenues

 

Revenues for the three months ended March 31, 2011 were $10.8 million as compared to $8.9 million for the three months ended March 31, 2010. The increase of $1.9 million, or 21.3%, was primarily due to enhancement of services from both repeat and new customers. Net revenues from license fees increased 0.2% year-over-year to $3.6 million. Revenues generated from maintenance fees were $1.9 million, up 9.0% from $1.7 million for the third quarter of fiscal 2010. Revenues generated from services totaled $5.3 million, up 48.8% from $3.5 million for the same period a year ago.

 

Gross Profit

Gross profit for the three months ended March 31, 2011 increased 23.6% year-over-year to $6.8 million, up from $5.5 million for the three months ended March 31, 2010. Costs of sales for the three-month period were $4.1 million as compared to $3.5 million for the same period a year ago. The Company's gross margin was 62.6% and 61.3% for the three months ended March 31, 2011 and 2010, respectively. The increase in gross margin was primarily due to the increase in sales as well as enhanced cost efficiencies and optimum streamlining of the Company's global delivery and implementation model.

 

Income from Operations

 

Operating income for the three months ended March 31, 2011 amounted to $4.8 million as compared to $2.6 million for the three months ended March 31, 2010. The increase of $2.2 million was primarily due to much-improved gross margins and revenues. Operating expenses for the three-month period totaled $2.0 million as compared to $2.9 million for the same period a year ago

.

Net Income

 

Net income attributable to NetSol for the three months ended March 31, 2011 was $3.3 million as compared to $0.6 million for the three months ended March 31, 2010, due to improved margins and sales. Earnings per basic and diluted share were $0.06 for the quarter, compared with $0.02 per share for the same period a year ago.

 

Results of Operations for the Nine Months Ended March 31, 2011

 

Revenues

 

Revenues for the nine months ended March 31, 2011 were $29.7 million as compared to $26.1 million for the nine months ended March 31, 2010. The increase of $3.6 million, or 13.8%, was primarily due to new licenses and improved service revenues. Net revenues from license fees increased 7.8% year-over-year to $10.3 million as compared to $9.5 million for the same period a year ago. Revenues generated from maintenance fees were $5.6 million, up 4.9% from $5.3 million for the first nine months of fiscal 2010. Revenues generated from services totaled $13.8 million, up 22.9% from $11.2 million for the same period a year ago.

 

Gross Profit

 

Gross profit for the first nine months of fiscal 2011 was $18.9 million as compared to $15.5 million for the first nine months of fiscal 2010, a year-over-year increase of $3.4 million or 22.4%. Costs of sales were $10.7 million for the nine-month period as compared to $10.6 million in the same period a year ago. The Company's gross margin was 63.8% for the nine months ended March 31, 2011, up from 59.3% for the nine months ended March 31, 2010. The increase was primarily due to the same factors affecting gross margin for the three months ended March 31, 2011.

 

Income from Operations

 

Operating income for the nine months ended March 31, 2011 amounted to $10.7 million as compared to $5.4 million for the nine months ended March 31, 2010. The year-over-year increase of 98.0% was primarily due to overall cost rationalization as well as improved gross margins and sales. Operating expenses for the nine months ended March 31, 2011 totaled $8.2 million as compared to $10.0 million in the same period a year ago.

 

Net Income

 

Net income attributable to NetSol for the nine months ended March 31, 2011 was $6.8 million as compared to a net loss of $0.1 million for the nine months ended March 31, 2010, due to improved margins and sales.Earnings per diluted share were $0.14 for the nine months ended March 31, 2011, compared with a net loss per diluted share of $0.004 for the same period a year ago.

 

Liquidity and Capital Resources

 

As of March 31, 2011, the Company had current assets of $40.8 million and current liabilities of $21.5 million. Cash and cash equivalents totaled $3.4 million as of March 31, 2011. The Company's shareholders' equity at March 31, 2011 was $64.7 million. The long-term liability of convertible notes was reduced by $4.8 million during the period. The Company generated $7.3 million in cash from operating activities during the nine months ended March 31, 2010, as compared to $3.9 million for the nine months ended March 31, 2010. The Company used $11.9 million in cash for investing activities during the nine months ended March 31, 2011, as compared to $6.1 million for the same period in 2010. The Company generated $4.0 million in cash from financing activities for the nine months ended March 31, 2011, as compared to $2.3 for the same period in 2010.

 

Recent Business Highlights

 

-- NetSol secured multiple client wins for NFS NextGen, the latest version of its NetSol Financial Suite (NFS)(TM) solution, as the Company expanded its NFS NextGen sales and marketing efforts from the Asia-Pacific region to North America. NetSol is currently in sales discussions for several new NFS NextGen implementation projects.

-- NetSol launched LeasePak-SaaS, a subscription-based lease, loan accounting, and portfolio management system delivered using the software-as-a-service ("SaaS") deployment model.

-- NetSol announced its participation in the SAP(R) EcoHub solution marketplace, a community-powered solution marketplace that makes it easier for customers to discover, evaluate and buy partner solutions, including smartOCI(TM), that complement SAP applications.

-- NetSol signed a strategic understanding with SANY Auto Finance Co., Ltd., one of the top 20 machinery equipment manufacturers in the world, for enhanced financial solutions and IT services.

-- NetSol successfully implemented its Loan Management system for Albemarle & Bond Holdings PLC, a UK-based pawnbroker and provider of financial services.

-- NetSol signed a contract with BYD Auto Finance Company to implement the entire NFS(TM) solution, including its Wholesale and Retail platforms.

-- NetSol signed an agreement with a major bank in Thailand to implement its Wholesale Finance System (WFS) for wholesale floor planning.

-- NetSol joined the Australian Equipment Leasing Association ("AELA").

-- NetSol completed the relocation of its Beijing operations to a larger office to accommodate an increasing workforce and new business generated from the Chinese market.

-- NetSol was awarded a maintenance contract by a leading telecom operator in Pakistan. The contract was for a security solution that protects the most critical segments of the client's IT operations.

 

Financial Outlook for Fiscal Year 2011

 

The Company reaffirms its previously stated revenue guidance for its fiscal year 2011 financial results, projecting revenues of $40 million to $44 million, and upgrades its earnings guidance from $0.15 to $0.20 to a range of $0.18 to $0.23 for the fiscal year ending June 30, 2011.

 

Conference Call and Webcast Information

 

NetSol will host a conference call today, May 10, 2011, at 11:00 a.m. EDT (8:00 a.m. Pacific) to review the Company's quarterly financial and operational performance. Najeeb Ghauri, Chairman and Chief Executive Officer of NetSol Technologies, will host the call.

To participate in the call please dial (877) 941-4774, or (480) 629-9760 for international calls, approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live Internet webcast, which can be found at the Company's website at http://www.netsoltech.com.

A replay of the call will be available for two weeks from 2:00 p.m. EDT on May 10, 2011 until 11:59 p.m. EDT on May 24, 2011. The number for the replay is (877) 870-5176, or (858) 384-5517 for international calls; the passcode for the replay is 4433965. In addition, a recording of the call will be available via the Company's website at http://www.netsoltech.com for one year.

 

About NetSol Technologies, Inc.

 

NetSol Technologies, Inc. (Nasdaq:NTWK - News) (Nasdaq Dubai:NTWK) is a worldwide provider of global IT and enterprise application solutions. Since its inception in 1995, NetSol has used its BestShoring(TM) practices and highly experienced resources in analysis, development, quality assurance, and implementation to deliver high-quality, cost-effective solutions. Specialized by industry, these product and services offerings include credit and finance portfolio management systems, SAP consulting and services, custom development, systems integration, and technical services for the global Financial, Leasing, Insurance, Energy, and Technology markets. NetSol's commitment to quality is demonstrated by its achievement of the ISO 9001, ISO 20000, ISO 27001, and SEI (Software Engineering Institute) CMMI (Capability Maturity Model) Maturity Level 5 assessments, a distinction shared by 178 companies worldwide. NetSol Technologies' clients include Fortune 500 manufacturers, global automakers, financial institutions, utilities, technology providers, and government agencies. Headquartered in Calabasas, California, NetSol Technologies has operations and offices in Alameda, Adelaide, Bangkok, Beijing, Karachi, Lahore, London, and Riyadh.

To learn more about NetSol, visit www.netsoltech.com.

post #149 of 162

anyone trading this?

post #150 of 162

 

Key Investment Data

Name:  NetSol Technologies
Ticker Symbol:  NTWK
Market Cap:  $80 million
Recent Price:  $1.45

PSB Rating System 4.7 Stars

Raging Revenue:  (4.5 stars) Revenue is expected to increase 11% this fiscal year to over $41 million.  And with the company adding new customers regularly, we could see this estimate revised higher.

Beautiful Books:  (4.9 stars) Earnings are expected to grow more than four-fold in fiscal year 2011 to $0.18 per share.  And the balance sheet is solid with $3 million in cash and very little long-term debt.

Stellar Structure:  (4.6 stars) Insiders are clearly confident with ownership just under 12% of shares outstanding.  Institutional ownership is small at 16%, but as it increases so will the share price. 

Valuation Verification:  (4.9 stars) Despite a strong earnings outlook, the stock is dramatically under-valued.  Based on our valuation analysis, we think the stock is worth at least $3.60 a share.  That’s upside potential of 148% or more.

Meaningful Milestones:  (4.7 stars) The company just inked a deal to implement their entire suite of financial software with a major auto manufacturer's captive finance arm in India.

post #151 of 162

NTWK is clearly heading in the right direction… and there’s more upside ahead.

For fiscal year 2011 (ending in June), revenue is expected to increase by 11% to over $41 million.  And earnings are projected to more than quadruple to $0.18 per share. That’s a strong growth outlook by any measure.

The company also sports a clean balance sheet. 

NTWK has over $3 million cash in the bank.  Current assets are 1.9x current liabilities. And with very little long term debt, the company has financial strength moving forward.

INVESTMENT RISKS

No investment is without risks and NetSol is no exception.

The company’s bullish growth outlook depends on the economic recovery continuing. If the economy falters, NTWK could suffer a slowdown as well.

Another risk is a potential drop in demand for cars and trucks.  If vehicle sales start declining, the company could be impacted. 

And finally, NetSol does business in Pakistan and the Middle East.  Ongoing political tensions could impact their business in that region.

POTENTIAL RETURNS OF 148%

At a recent price of $1.45, NTWK shares are trading at just 8.5x earnings.  That's an incredibly low P/E ratio for a company expected to grow earnings 20% annually over the next five years. 

To put it another way, the company's PEG ratio is a low 0.43.  This means the stock is trading at a shocking 57% discount to the company's projected growth rate.

And that’s not all…

The shares are also misvalued on a price to book basis.  Right now NetSol has a P/B ratio of 1.52x… well below the industry average of 4.70x.

No matter how you slice it, NTWK’s shares are clearly undervalued.

NTWK deserves a valuation consistent with their stellar earnings growth.  If the shares trade up to that level, we'll be looking at gains of 140%!

With the economy continuing to improve and strong revenue growth moving forward, there’s no reason why the shares shouldn’t move a lot higher.

Based on our analysis, we see the stock trading up to at least $3.60 a share. Buy NTWK now for potential gains of 148%. 

post #152 of 162

NTWK $1.51...BREAKOUT ALERT!!....6 PE...TO BE ADDED RUSSELL 2011 MICROCAP INDEX... 23C/SH NET INCOME

TARGET: $4+ after upcoming 4Q earnings release per recent increased guidance. Heavy insider/fund/institutional buying

NTWK chart has turned very bullish. Fundamentals can easily support $4+

http://stockcharts.com/freecharts/gallery.html?ntwk

NTWK has been up 20% since Russell posted on its website that NTWK will be added to the 2011 Index (6/11/2011). Big block trades have occurred every day AH for the last 8 consecutive days. The Russell will make formal announcement on the reconstituted indices on 6/27 and NTWK will fly

http://finance.yahoo.com/news/NetSol-to-Join-Russell-pz-1136010103.html?x=0&.v=1

 

Here is the Russell 2011 final list:

 

http://www.russell.com/indexes/tools-resources/reconstitution/reconstitution-changes.asp

 

NTWK is being have been mentioned by several financial publications recently:

http://www.fool.com/investing/general/2011/06/15/5-stocks-that-are-cheaper-than-you-think.aspx


RECENT MAJOR DEVELOPMENTS::


- 6/16/2011 NTWK announced that will it be added to the Russell 2011 Microcap Index Fund starting on June 24, 2011.

- 6/14/2011 NTWK announces a new IR company to help manage exponential global growth as a cloud computing software company

- 5/25/2011. NTWK Signs a multi-million dollar contract in Japan. Every software license win carries with it a lucrative 5-year service/maintenance contract thus increasing its recurrent revenues with every contract.

- 5/24/2011 NTWK announces a multi-million dollar win in India (with Mercedes Benz per the global alliance announced on September 23, 2011. The initial agreement with Mercedes called for nine new countries including India, South Korea, Japan, others)

- 5/19/2011 NTWK announces its intention to enter Brazil through a JV with huge Brazil conglomerate and investment bank Brazilinvest.

5/10/2011 NTWK reported record revenues and RAISED GUIDANCE to 23c/share net income. During the annual meeting the same day, the CEO stated that SAP-approved procurement search engine smartOCI will be a game-changer $$$.

- 4/6/2011 NTWK announced a multi-million supply chain/logistics win. First one in this new vertical. NTWK has over 90% market share of the leasing/financing software market in China. The company is branching into other verticals like lending/banking, supply chain, healthcare, insurance, etc..

- 3/16/2011 CEO Najeeb Ghauri purchased 100,000 in the open market. This is in addition to 1.4 million shares purchased by him and his two brothers in the last 12 months (or about 4% of the company).

- Exponential growth in China/Asia. Moving into larger HQ in Beijing and Bangkok

- in September 2010 NTWK signed a global alliance with Mercedes Benz...9 new countries were assigned initially for software implementation. Revenues will start coming in this quarter

- Expanding Beijing and Bangkok offices to satisfy explosive China and South East Asia growth

- On 1/14/2011 Ativo Research (Does stock research for Fidelity investments) rated NTWK "Strong Buy" with an upper target of > $5/share

- Launched Atheeb Netsol JV with Royal Saudi Family

OTHER HIGHLIGHTS:

- 5 PE and 1.4 times sales. This is 25% of application software sector averages
- US-based global software company
- Gross margins 65%+
- 5-year average growth of 20%+/yer per CC comments
- NTWK controls 90% of the Chinese auto leasing/financing software market
- 0ver 20 Fortune 100 customers including Ford, BMW, GM, Mercedes Benz, Toyota, Nissan, Chase, Citi, PNB Paribas, Deutsche Bank, Ge Capital, Cisco Capital, etc.
- Front runner in Billion-dollar in IT/software infrastructure and military mega-projects in Pakistan
- New JV in Saudi Arabia with Atheeb Group ran by the Royal Family
- Buyout candidate, During the 4Q 2010 earnings CC the CEO acknowledged that there are always suitors circling around. He stated categorically that he will only consider offers North of $8

About NTWK

NetSol Technologies, Inc. (Nasdaq:NTWK - News) (Nasdaq Dubai:NTWK) is a worldwide provider of global IT cloud and enterprise application solutions for the global Financial, Leasing, Insurance, Energy, SAP/Oracle enterprise applications, and several Technology markets.

NTWK is headquartered in Calabasas, California and has operations and offices in Alameda, Adelaide, Bangkok, Beijing, Karachi, Lahore, London, Rio de Janeiro, and Riyadh

post #153 of 162

NTWK $1.75..8 PE...ON FIRE!!!! FLYING ON SAP CLOUD COMPUTING CONTRACT WITH FORTUNE 500 COMPANY and  2011 RUSSELL INDEX ADDITION

TARGET: $4+ after record 4Q earnins per recently raised guidance to 23c/share net income

NTWK chart has turned very bullish. Fundamentals can easily support $4+:

http://stockcharts.com/freecharts/gallery.html?ntwk

Huge news today. NTWK announces its first major contract with a Fortune 500 company to implement is SAP smartOCI Cloud Computing e Procurement search engine and catalog management system:

http://finance.yahoo.com/news/Fortune-500-IT-Company-pz-2075653244.html?x=0&.v=1

This is the first on several similar contracts with global Fortune 100/500 that the CEO said are "Imminent" during this year's Annual Meeting on 5/10/2011. The CEO said that demand for smartOCI has exceeded their expectations and that will add significantly to the bottom line since it is a plug-and-play Cloud Computing product.


NTWK was officially added to the 2011 Russell Microcap Index yesterday (6/27/2011)

RECENT MAJOR DEVELOPMENTS:

- 6/27/2011 NTWK officially added to the 2011 Microcap Index per the final list established after the close on 6/24/2011

- 6/16/2011 NTWK announced that will it be added to the Russell 2011 Microcap Index Fund starting on June 24, 2011.

- 6/14/2011 NTWK announces a new IR company to help manage exponential global growth as a cloud computing software company

- 5/25/2011. NTWK Signs a multi-million dollar contract in Japan. Every software license win carries with it a lucrative 5-year service/maintenance contract thus increasing its recurrent revenues with every contract.

- 5/24/2011 NTWK announces a multi-million dollar win in India (with Mercedes Benz per the global alliance announced on September 23, 2011. The initial agreement with Mercedes called for nine new countries including India, South Korea, Japan, others)

- 5/19/2011 NTWK announces its intention to enter Brazil through a JV with huge Brazil conglomerate and investment bank Brazilinvest.

5/10/2011 NTWK reported record revenues and RAISED GUIDANCE to 23c/share net income.

- 4/6/2011 NTWK announced a multi-million supply chain/logistics win. First one in this new vertical. The company is branching into other verticals like lending/banking, supply chain, healthcare, insurance, etc..

- 3/16/2011 CEO Najeeb Ghauri purchased 100,000 in the open market. This is in addition to 1.4 million shares purchased by him and his two brothers in the last 12 months (or about 4% of the company).

- Exponential growth in China/Asia. Moving into larger HQ in Beijing and Bangkok

- September 2010 NTWK signed a global alliance with Mercedes Benz...9 new countries were assigned initially for software implementation. Revenues will start coming in this quarter

- Expanding Beijing and Bangkok offices to satisfy explosive China and South East Asia growth

- On 1/14/2011 Ativo Research (Does stock research for Fidelity investments) rated NTWK "Strong Buy" with an upper target of > $5/share

- Launched Atheeb Netsol JV with Royal Saudi Family


OTHER HIGHLIGHTS:

- 7 PE and 1.4 times sales. This is 25% of application software sector averages
- Gross margins 65%+
- 5-year average growth of 20%+/yer per CC comments
- NTWK controls 90% of the Chinese auto leasing/financing software market
- 0ver 20 Fortune 100 customers including Ford, BMW, GM, Mercedes Benz, Toyota, Nissan, Chase, Citi, PNB Paribas, Deutsche Bank, Ge Capital, Cisco Capital, etc.
- New JV in Saudi Arabia with Atheeb Group ran by the Royal Family
- Buyout candidate, During a recent CC the CEO acknowledged that there are always suitors circling around. He stated categorically that he will only consider offers North of $8

About NTWK:

NetSol Technologies, Inc. (Nasdaq:NTWK - News) (Nasdaq Dubai:NTWK) is a worldwide provider of cloud computing and enterprise software applications headquartered in Calabasas, California. NTWK has operations/offices in the US, Adelaide, Bangkok, Beijing, Karachi, Lahore, London, Rio de Janeiro, and Riyadh

post #154 of 162

Kicking myself now, cheap ass. I tried to get in yesterday when the bid/ask was 1.56/1.57. I went with the bid. Now I will wait to see if a pullback comes. If not, move on to the next one.

post #155 of 162

NTWK $1.5 UP!!..7 PE...NAVELLIER RECOMMENDS TO BUY NOW....RECORD EARNINGS AHEAD...GUIDANCE: 23c/SH NET...HUGE INSIDER/INSTITUTIONAL/FUND BUYING

Target: $4+ after record 4Q 2011 earnings in a month (per recently raised guidance to 23c/share net income)

On 7/15/2011 well known stock guru Louis Nevellier recommended to buy NTWK, a fast growing profitable Cloud Computing software company with 3 sequentially stronger quarters and the biggest one just ahead:

http://www.thestreet.com/_yahoo/story/11186677/1/3-software-penny-stocks-to-buy-navellier.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

In Navellier's website you will find that NTWK has the highest A ranking based on 9 performance-based criteria.

http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=NTWK

The stock is currently trading around a ridiculous 7 PE at this time because it is being manipulated/accumulated as you will see in the trading activity.

There have been over 20 straight days of large AH block trades since the stock was initially mentioned that it would be added to the Russell 2011 Microcap index (officially added on 6/27/2011)

A financial publication last week named NTWK the 5th most profitable company in the IT services sector. NTWK's net profit margin was 33.37% for the last 12 months. Its operating profit margin was 37.26% for the same period.

RECENT MAJOR DEVELOPMENTS:

- 6/68/2011 NTWK announced its first major contract with a Fortune 500 company to implement is SAP smartOCI Cloud Computing eProcurement search engine and catalog management system:

- 6/27/2011 NTWK officially added to the 2011 Microcap Index per the final list established after the close on 6/24/2011

- 5/25/2011. NTWK Signs a multi-million dollar contract in Japan. Every software license win carries with it a lucrative 5-year service/maintenance contract thus increasing its recurrent revenues with every contract.

- 5/24/2011 NTWK announces a multi-million dollar win in India (with Mercedes Benz per the global alliance announced on September 23, 2011. The initial agreement with Mercedes called for nine new countries including India, South Korea, Japan, others)

5/10/2011 NTWK reported record revenues and RAISED GUIDANCE to 23c/share net income.

- 4/6/2011 NTWK announced a multi-million supply chain/logistics win. First one in this new vertical. The company is branching into other verticals like lending/banking, supply chain, healthcare, insurance, etc..

- HUGE INSIDER and INSTITUTIONAL/FUND BUYING. 3/16/2011 CEO Najeeb Ghauri purchased 100,000 in the open market. This is in addition to 1.4 million shares purchased by him and his two brothers in the last 12 months (or about 4% of the company).

- Exponential growth in China/Asia. Moving into larger HQ in Beijing and Bangkok

- September 2010 NTWK signed a global alliance with Mercedes Benz...9 new countries were assigned initially for software implementation. Revenues will start coming in this quarter

- Expanding Beijing and Bangkok offices to satisfy explosive China and South East Asia growth

- On 1/14/2011 Ativo Research (Does stock research for Fidelity investments) rated NTWK "Strong Buy" with an upper target of > $5/share


Other Highlights:

- 7 PE and 1.4 times sales. This is an 80% discount of teh application software sector averages
- Gross margins 65%+
- 5-year average growth of 20%+/yer per CC comments
- NTWK controls 90% of the Chinese auto leasing/financing software market
- 0ver 20 Fortune 100 customers including Ford, BMW, GM, Mercedes Benz, Toyota, Nissan, Chase, Citi, PNB Paribas, Deutsche Bank, Ge Capital, Cisco Capital, etc.

About NTWK

NetSol Technologies, Inc. (Nasdaq:NTWK - News) (Nasdaq Dubai:NTWK) is a worldwide provider of Cloud Computing and enterprise software applications headquartered in Calabasas, California. NTWK has operations/offices in the US, Adelaide, Bangkok, Beijing, Karachi, Lahore, London, Rio de Janeiro, and Riyadh

 

post #156 of 162

Glad I did not get in earlier. Started a position @ 1.08

post #157 of 162

Traded on the NASDAQ

 

Nice Chart and based on earnings undervalued. Nice company earnings above cracity. Should double you money with this one on the market bounce.

 

hmm.PNG

 

hmmmm.PNG

 

 

post #158 of 162

I bought more at .76 yesterday. Bought BRCD also. These small earning misses dropping stocks by 50% is crazy. I think it is a good buying opportunity when the income is positive. They will eventually climb back up.

post #159 of 162
Quote:
Originally Posted by cracity View Post

I bought more at .76 yesterday. Bought BRCD also. These small earning misses dropping stocks by 50% is crazy. I think it is a good buying opportunity when the income is positive. They will eventually climb back up.



 Anyone can see the potential in this stock GL.

 

hjhj.PNG

post #160 of 162

Nice pop today

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