NTWK $1.4..6 PE...TARGET: $4+...ADDED TO RUSSELL 2011 MICROCAP INDEX...UPPED GUIDANCE TO 23C/SH
TARGET: $4+ after upcoming 4Q earnings release per recent increased guidance
COMPANY ANNOUNCED TODAY NTWK's INCLUSION ON RUSSELL 2011 MICROCAP INDEX FUND
No. 1 IN CHINA/S. E. ASIA and GROWING GLOBALLY IN HOT EMERGING MARKETS @ 20%/YEAR++ RATE
INSIDERS BOUGHT 2M+ SHARES IN A YEAR....INSTITUTIONS ADDED 50%+ IN A YEAR
GROWING SUITE OF SAP-APPROVED CLOUD COMPUTING SOFTWARE APPLICATIONS
RECENT MAJOR DEVELOPMENTS:
- 6/16/2011 NTWK will be added to the Russell 2011 Microcap Index Fund.
- 6/14/2011 NTWK announces a new IR company to help manage exponential global growth
- 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
- 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
NetSol Technologies, Inc. (Nasdaq:NTWK - News) (Nasdaq Dubai:NTWK) is a worldwide provider of global IT cloud and enterprise application 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.
Headquartered in Calabasas, California, NetSol Technologies has operations and offices in Alameda, Adelaide, Bangkok, Beijing, Karachi, Lahore, London, and Riyadh
Up and Up everyday since Russell posted in its website 6/11/2011 that NTWK will be added to the 2011 Russell Microcap Index starting on June 24, 2011 (this Friday).
Also unusual for this stock is there have been daily large blocks traded AH at near the closing price for the day.....those purchases coincidentally have occurred since since 6/11/2011 (I don't think it's a coincidence) Yesterday's block was 100,000 shares.
As expected, NTWK is starting to breakout because technicals are improving and fundamentals can support $4+.
Financial publications are starting to take notice about NTWK's upside super undervalued current status. In fact, NTWK is trading at 20% of sector averages in terms on PE and PriceXSales
Bullish The Fool article on NTWK this week concludes that NTWK shold be trading at much higher leves:
NTWK IS CHEAPER THAN YOU THINK
NetSol Technologies provides leasing software and other enterprise solutions. Despite its smallish size, NetSol is every inch a global player. It inked sizable automotive-related deals in Japan and India last month.
NetSol boosted its guidance a few weeks ago for its fiscal year which ends this month. Instead of earning $0.15 a share to $0.20 a share, NetSol now sees a profit of $0.18 a share to $0.23 a share. This doesn't seem like the kind of stock that deserves a Dollar Menu price.
Also keep in mind that NTWK hired a top of the line IR/PR company last week. This company represents many Fortune 100 companies (Procter and Gamble, Wells Fargo, others) and fast growing companies on their way to greatness. The company was previously criticized for having RedChip as its IR company.
SeekingAlpha published a very bullish article on NTWK last week....check it out.
The fundamentals can certainly support $4+ but this weeks the technicals have improved daily. The stock is inching towards positive money territory and the 50/200 averages. But it is still extremely oversold.
In the mean time there is a heavy accumulation going on in a very narrow range. Any significant news and this coiled spring will explode upwards