Neteller Share Discussion Threads

[dealy] 26/7/2007 08:11

where do you get 65p net from?

[holmess] 26/7/2007 08:10

Nice start!

[demark] 26/7/2007 08:09

i believe market expects that at 65p "net" is trading at a huge discount.

dyor

[rbhaggas] 25/7/2007 19:33

holmess-TRT still my main holding by a long way/got a few PRTY to day @29.5 think its been walked down enough,in the past traded this most days,but thinking of this purch more long term-holding IQE-888-ANR-CDN-BLNX*-IFL-PMK*-PXC-SLV-AEY& VOG for my sins ;)*buys this week.
If you want to you could with your holds to save space on this thread-will remove my email address
sorry for the off topic guys..

[stewjames] 25/7/2007 19:03

Operating icome - $4.5m for Q1 = $18m for the year (assuming No Growth) - £9m. EV:EBITDA (Clean pre exceps etc) is thus 4 times not 10.

Sadly not. That operating income included a big slice from the US and Canada.

"Performance during the first quarter of 2007 was clearly impacted, to a material
extent, by the Company's voluntary withdrawal from the US market on 18 January
2007. The Company also announced the cessation of online gaming related
transfers for Canadian residents on 26 March 2007. The Group recorded revenue
of $32.7 million for Q1 2007, compared to $71.8m in the prior quarter. This
included approximately $14 million in revenue from the US market prior to the
Group's withdrawal from that market and a full quarter's contribution from the
Canadian business. Interest revenue for the quarter was approximately $3.9
million. Transaction revenue from outside the USA and Canada was approximately
$14.7 million."

If that 4.5M was on ongoing business then it would be bargain of the decade!

[holmess] 25/7/2007 18:49

rbhaggas - Yeah, although missed a few pence lower by microwaving my lunch ;) - NLR been very good to me in the past. Hoping for a nice return over next few months.

What else you holding these days?

[rbhaggas] 25/7/2007 18:46

nice entry holmess-tried to buy some from barclays online/could'nt believe it epic NLR not on there system, so phoned up to buy,but price had gone to 61-decided to wait for a drop ? or can allways buy more TRT :)

[gucci] 25/7/2007 18:45

big fall here
sorry R, didn't mean your comments

[richardsj] 25/7/2007 18:38

Nurdin -
Operating icome - $4.5m for Q1 = $18m for the year (assuming No Growth) - £9m. EV:EBITDA (Clean pre exceps etc) is thus 4 times not 10.
Dont forget the $40m isnt due till next year too (2008)- time value of money and all that?And also they will get the interest accruement on this although thats tiny...
These things are 85/90p = EV:EBITDA 7 times.

[stewjames] 25/7/2007 18:10

You disagree, or just laughing at the thought of it taking several years then going bust?

$210M minus $136M for the settlement minus $4M for restructuring costs. That leaves $70M. Even with zero reduction in costs (obviously ridiculous) and zero growth (unlikely) that leaves them about 4 years worth of cash. Hell, they could last a year and a half with zero business!

[nurdin] 25/7/2007 18:05

Look at it the other way.

-current market cap is £74m at 62p
-net cash balance of £37m or there abouts
-thats an EV of £37m
-a clean profit of say £3m would put them on a forwards muliple of modest 12x...and £4m would put them under 10x
-just ball park numbers but gives a rough template for the valuation
-the key question is can they meet those profit figures?
-I personally cannot see any reason whey they cant.

[25cent] 25/7/2007 17:52

"It's not going bust for several years" -hehe

[stewjames] 25/7/2007 17:30

Q1 revenue outside US and Canada $15M. 50% gross margin, so $7.5M gross profit is about the current run rate. $12M admin costs, so nastily loss making. EXCEPT, of course, costs will be significantly reduced going forward. How quickly and by how much? That's the key thing to figure out to determine the value here. It seems to me this is very much in the realm of finger in the air guesswork. Unless I missed some guidance from the company on the subject?

On the plus side, the cash position is strong. It's not going bust for several years, short of further very nasty legislation surprises down the road.

Throwing some numbers out there, a 50% decrease in costs coupled with a 30% growth in revenues at current growth margins would see them making the equivalent of $15M/year by Q1 2008, which would make the current price very attractive. A 25% decrease in costs with the same growth rate translates to just $3M/year profitability, which would be much less interesting! Overall, I think the odds are good this will turn out to be a good price in the long term, but this may well be one of those situations where waiting for greater clarity will reduce the risk much more than it will reduce the reward.

[shaunoneill29] 25/7/2007 17:21

still a long way to drop less than 50p.

[a2584728] 25/7/2007 17:20

All the bad is in the public domain, the market makers will be happy to take stock from you at this price.

The only way is up once they have settled at a level.

[shaunoneill29] 25/7/2007 17:15

Neteller reveals extent of US damage
Neteller has revealed the full extent of the damage done by its withdrawal from the US with a delayed first quarter trading statement released this afternoon.

After restructuring costs of over US$12m and other expenses the company posted a pre-tax loss for the three months to March 2007 of US$14m compared to a profit of US$16m the year previously.

The company said it has undertaken a "major exercise to realign its cost base with anticipated revenues on a worldwide basis" and said it now employed 425 people worldwide.

It said it had cash balances after its recent US$136m settlement with the US authorities of US$74.5m.

The company has also announced its re-admittance to the Alternative Investment Market.

The statement shows that the active customer base outside of the US has fallen over two-thirds down to 99.575.

Group revenue for the first quarter, including a partial contribution from the US and a full quarter's contribution form Canada (which the company also exited towards the end of the period) was US$32.7m from US$71.8m. This included approximately US$14m in US revenue. The company did not state how much of this was due to the now discontinued Canadian customers.

Operating income was US$4.5m or 13.6% of revenue.

One analyst was pessimistic over the company's prospects, despite still being active in Europe. "Which parts of Europe are they going to be active in? (It) has had the living daylights scared out of it by the USAO. It won't want to take any more risks."

The analyst added that the market was different in Europe where online gaming customers tended to have much more faith in the operators than did their equivalents in the US. "There is a lot more trust."

Neteller last week announced its deal with the UUS attorney's office for the southern district of New York that saw it plead to certain chargers in exchange for the cash settlement of US$136m. This followed the guilty pleas on the part of founders and ex-directors Stephen Lawrence and John Lefebvre.

No-one from the company was available for comment.

[guythomas] 25/7/2007 17:09

NETeller says 'well positioned' to benefit from online payment growth AFX UK Focus
LONDON (Thomson Financial) - NETeller PLC said it is "well positioned" to benefit from online payment growth adding trading on AIM trading has been restored.

In a trading update, the e-payment company said it continues to progress its plans to implement the distribution plan for the return of about 94 mln usd of US customers' funds by 30 July 2007.

The company's shares were suspended on Jan 16 pending clarification after the its former directors and founder shareholders Stephen Lawrence and John Lefebvre were investigated by the US authorities. [e-mail] kkb/bsd


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[guythomas] 25/7/2007 17:01

tradx..ya loserrrrrrrrrrrrrrrrrrrrrrrrrrrr!

[holmess] 25/7/2007 17:00

In at 56p. I think these can reach a quid when the dust settles and sanity returns.

[dexy2] 25/7/2007 16:48

Very new to this stock - but thought that we'd got to a crazy bottom shortly after re-admittance - bout 2500 at 54.5p for a complete punt and tried to sell at 63p unfortunately trade wouldn't go through - will be taking up with broker if opens down grrr..... Quite happy to hold up to Friday otherwise and see how it pans out with those broker notes. Just out of interest - did anybody else hit major on-line dealing problems?

[dealy] 25/7/2007 16:45

no idea what these things are worth but picked up 40,000 shares in the madness this afternoon.

[nurdin] 25/7/2007 16:41

Look quite cheap here..brokers note out next couple of days....that should shed a bit more light.

[supersturrock] 25/7/2007 16:39

Average daily sign ups 900 per day in second quarter ( i.e. ex N. America). Doesn't sound like they are ex-growth to me.