Neteller Share Discussion Threads

[dealy] 23/8/2007 08:41

£55m of the market cap is net cash. So, at £45m for this business the capitalisation seems far from "high enough"

[mercier et camier] 23/8/2007 08:34

...and don't forget the company reported losses for the six months to 30th June 2007. High enough for now.

[dealy] 23/8/2007 08:33

If it was major they would have highlighted it I am sure (what, after all these guys have been through recently you can be sure they don't want any skeletons)

[mercier et camier] 23/8/2007 08:31

Capitalised at £100M the shares are high enough. The global credit contagion will spread to online gaming firms.

[maestro4] 23/8/2007 08:30

dealy

potential litigation.
do you think this vendor is in the states...

[dealy] 23/8/2007 08:24

£17m proceeds from a property sale! Unbelievable! (just corrected)

That puts net cash at about £55m. That values the core business at just £50m and that core business has gross margin today of about £17m.

[maestro4] 23/8/2007 08:21

potential litigation, who is that.....

"Litigation



The Group is aware of potential litigation resulting from an alleged breach of
contract with a vendor. No claim has been filed and the outcome and potential
damages are unknown."

[quinan] 23/8/2007 08:19

maestro Well from the markets point of view they thought NLR was finished after the US withdraw, as they did with lots of stocks. I think we will see a correction in the SP, very much undervalued IMHO plus if NLR start implementing a share buy back it will only strengthen its position that things are going well.

[maestro4] 23/8/2007 08:17

Property sales



The Group has received and accepted a conditional Letter of Intent for the
purchase of Calgary property located on 27th Avenue which is expected to lead to a sale agreement closing in the fourth quarter of 2007. Expected proceeds of the sale are approximately CAD $39 million. Pursuant to this agreement, the
Group will continue to lease facilities at this location.



The Group has entered into a sale agreement for Calgary property located on 41st Avenue. The agreement is expected to close on 31 August 2007 for proceeds of approximately CAD $4 million, with CAD $0.75 million payable as a vendor take back mortgage over three years.

[maestro4] 23/8/2007 08:08

Quinan what you reckon, undervalued?

[quinan] 23/8/2007 08:07

Not bad going for July as well.

daily fee revenue amounted to
96,365 usd per day. Sign-ups for the period from 1 July 2007 to 21
August 2007 averaged 801 per day.

[maestro4] 23/8/2007 07:59

share buy backpositive!!!!

Share capital

The Company received approval at the Company's Annual General Meeting on 20
August 2007 to buy back up to approximately 11.9 million shares, representing
10% of the Company's issued share capital of 119,920,953 ordinary shares. The
Company's buy back programme will be opportunistic taking into account the
Company's available cash resources and other investment requirements from time
to time.

[maestro4] 23/8/2007 07:55

this explains the loss, not bad...


"During the first half of 2007, in accordance with IAS 36, the Group completed a comprehensive write-down of all assets directly relating to the North American facing business (including computer software, website development, computer hardware and software licenses). These assets were written down to their estimated recoverable amounts. An expense of $13 million was recognised in the Group's consolidated income statement for the six month period ended 30 June 2007.

Related reorganisation and restructuring costs (consisting of severance costs
and retention costs for key employees) of approximately $2.7 million has been
expensed during the first half of 2007. A total amount of $8.9 million in
professional and legal fees incurred in the resolution of the US situation
(including the distribution of funds to US customers and negotiating potential
sanctions against the Group) has been expensed in the same period. To
facilitate ongoing cooperation under the terms of the Company's deferred
prosecution agreement, an additional $10 million to $15 million of legal and
professional fees are expected to be incurred during the remainder of the year.

In aggregate these costs and write-downs are expected to total between $35
million and $40 million and will be reflected in the Group's results for the
full year ending 31 December 2007.

The Board believes that the Group's cost structure is now appropriate to service
its customers worldwide, and will support revenue generation opportunities in
the growth markets of Europe and Asia Pacific. The Group's focus on innovative
payment solutions to e-commerce communities should drive the long term viability of the business.

Share option expense is included in general and administrative expense. For the first six months of 2007, the share option expense was $4.5 million compared to $2.6 million in the same period of 2006. The expense is calculated based on the trinomial model of option valuation, which is impacted by the number of options outstanding and the volatility of the shares."

[maestro4] 23/8/2007 07:45

what price do you think they will open..

"Despite this, our business (ex-North America) has grown substantially in the
first half of 2007 compared to the same period in 2006. At 30 June 2007, we had 97,216 active customers from Europe, Asia Pacific and the Rest of World which represents an increase of 29% from 75,381 active customers as at 30 June 2006 (like-for-like basis). Active customers are the key driver of our revenue as explained further in our Financial Review."

[dan1man] 23/8/2007 07:38

Thaanks.

Wonder how many companies with those kind of growth rates have PEs in single figures.

This is surely going to fly today

[dealy] 23/8/2007 07:36

Revenue in July alone was $5.6m so an annualised rate of $67m plus growth rate of about 40%. Company should deliver revenues in 2008 of at least $85m. Gross margin is about 50% so they should have about $42m in gross margin in 2008.

How much profit would they make on that? Got to be at least $20m or £10m.

That puts them on a PE of about 6 ex cash.

[dan1man] 23/8/2007 07:32

Customer gowth (ex NA) 29%, revenue growth 46%

Someone remind me what PE we're on again.

[quinan] 23/8/2007 07:31

Morning all well still reading as expected NLR has been hit by the US withdraw but that is already factored into the share price The question is growth and profitability, with margins of 55% and Europe pulling in approximately $21.2 million and Asia Pacific $5.4 million in the first half, plus the restructuring of the group and its property in Calgary at $20 million + the $12 million in improvements. IMHO things can only improve from here growth is increasing the move to Asia Pacific which is a massive market all points to a posative investment.

[maestro4] 22/8/2007 16:34

they didnt want to give them away at the end...

[davidlloyd] 22/8/2007 16:33

same here Maestro - with selftrade. but order filled last thing....come on!

DL

[maestro4] 22/8/2007 16:29

ordered filled..

bring em on!!

[maestro4] 22/8/2007 16:22

cant even buy any online with td, put a order in.

[quinan] 22/8/2007 14:30

Hi delay don't know but I knew he had to sell them due to the US situation NLR didn't want to be associated with him after his arrest. As for LNG watching very carefully might add more once things have settled down in the market place, plus would like to see some numbers. One to watch might be GVC about to announce a new Italian sports book + Div payment in October could be better than the 13p div from the last half year, and at £1.33p a very good return.

[drjudywood] 22/8/2007 14:25

heard a whisper that Lawrence has pumped it all into a spread bet...no brainer