Updates

NETeller

August 2006

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

In the face of a weakening share price NETellerâ€™s latest trading statement did not inspire confidence. Although it added another 600,000 customers to take its total to 2.9m in the half year ended 30 June, the rate of new daily sign-ups decreased markedly in its second quarter to 2,898 compared to 3,609 in Q1. Other bugbears were the reduction in gross margin due to higher bad debts and higher cost pressures from its Calgary operations. As a result, broker Investec has trimmed this yearâ€™s forecasts by 10% to US$142m, leaving earnings at 109 cents (59.2p). Although the PE now looks cheap, the broker hinted there could be more downgrades to come if these cost pressures persist. The tanking share price tells its own story albeit ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Mears - Buoyant trading continues

Charter - Earnings forecast upgraded to 59p

NETeller - Another earnings upgrade (May 2006)

NETeller - Canaccord's latest price target is 1125p (March 2006)

NETeller (December 2005)

NETeller - Shares burst through Â£9 level (October 2005)

NETeller - Shares poised to surge when PartyGaming floats (July 2005)

NETeller - Average daily sign-ups approaching 3000 members (June 2005)

NETeller - Moves into dynamic Asian market (April 2005)

NETeller - Shares breach 600p level (March 2005)

NETeller - FSA approval triggers share surge (December 2004)

NETeller - Online payment processor has makings of a multi-bagger (October 2004)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X