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NetSol Technologies, Inc. Message Board

  • balsampoplar balsampoplar May 12, 2011 9:49 AM Flag

    How can NetSol dominate China with only $40m in revenue?

    New information from the Shared Due Diligence (http://sharedduediligence.blogspot.com/)

    There are a number of Chinese auto mfgrs,eg Foton, SAIA, BYD, that are establishing finance/leasing units either by themselves or with global partners

    There are a number of global auto mfgrs that have finance/leasing units in China, either by themselves or partnered with Chinese auto mfrs, some of whom make the global mfgrs cars for them in China.

    In the past three years this business has established itself. Prior to that leasing or even financing a car occurred rarely in China. After the recession the one software company that most of the domestic and international leasing businesses operating in China called was NetSol.

    The reasons - the maturity of NFS, the quality ratings that NetSol achieved in CMMI Level 5, ISO 9001, 20001 and 27000
    for their ability to develop software in a world class way to meet quality, security, service management and conform with general software development practices. For example, on CMMI Level 5, which focuses on how software is developed, only 200 companies world wide are certified like that. These large global companies want that assurance that their software developer knows what they're are doing.

    There are a few other things in NetSol's favor:

    -NetSol has the ability to deliver its software in a number of languages including Chinese. Therefore it can also partner with you globally as you, a Chinese auto mfgr, want to pursue markets in the US and Europe, as BYD is doing.

    -NetSol has been around for 15 years, is NASDAQ listed and with its development unit in Lahore, is local. Given that the Chinese also have very warm relations with Pakistan and consider them an ally, NetSol is well regarded.

    -Because of the development/cost center in Lahore NetSol has probably the lowest prices in the world for an application software suite. They are 30% cheaper than India, for example, usually thought to be the low cost producer of anything software.

    NetSol has used these advantages to establish itself as the premier software developer in this niiche space. Currently 80% of their overall revenue comes from NFS and 65% of their overall revenue comes out of China and Asia, where NFS predominates.

    Yes, it is a small company now, growing to $40m+ this year. Their strategy to go globally with all their current customers will help them grow beyond this niche. Their core competencies in how to develop and deliver software application packages, and in the cloud, will take them beyond this industry.

    Right now everyone wants the stock to run, including us. We've been burned by the overhang from conversions of warrants and options that is now ending. The price will start to rise strongly very soon. What lies ahead is a company that has no growth limits, huge competitive advantages, core competencies in cutting edge application development and a pretty hungry management team.

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    • i am not trying to patronize anyone, just trying to get people to calm down & be patient. next qtr
      we will see a nice move in the stock, if not sooner.

    • This was a very nicely written and well thought out post. I agree with most everything you said, except take exception to this sentence: "The price will start to rise strongly very soon" as it is speculation, and wishful thinking, at best.

      Nothing I have seen supports this until revenue dramatically increases. Growth and profitability have been nice but not enough to move the stock. In fact, it's down 25% over recent highs.

      • 1 Reply to jerz2ct
      • excellent post. it's amazing nobody knows how to invest by holding a stock. being impatient, people will never ride up a stock 500% or more. everyone wants instant profits. it's very sad.

        for me, i'm happy to buy a stock whose earnings are just beginning to enter a new phase of growth and will last for at least a few years.

        the product offerings are exceptional. does anyone realize what the iso certifications mean? being in software i know it's extremely important to have these certifications as it allows ntwk to compete with the billion $ companies as ntwk are MASTERS OF SOFWARE. this distiction is very important to compete for very large contracts.

        i will sit back, relax, laugh at all the shories & accumulate shares & WAIT A FEW YEARS. you see, shorties need money now, investors will wait a few years because when the stock really explodes to the upside serious money is made.

    • Balsam--

      Well said. It is nice to hear facts instead of a bunch of cry babies who should be investing in CD's and forget about investing in small growth stocks...

 
NTWK
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