Updates

NETeller - Another earnings upgrade

May 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.

Final results for online payment processor NETeller were very strong, with pretax profit increasing 114% to US$97.8m and turnover rising 108% to US$172.1m. Helped by a reduction in the tax charge from 28% to 6.4%, fully diluted earnings jumped from 37 cents to 75 cents (43p). Gross margins rose sharply from 69.4% to 73.5% helped by a reduction in bad debts from 14.2% to 12.1%. NETeller’s strong cash generation enabled it to end the year with free cash of nearly US$115m, compared to US$77m in 2004. NETeller traditionally divulges little information about current trading at this point but it did note that its customer base reached a new milestone of 2.5 million. It has also increased its roster of on-line gaming merchants to ...

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Chemring - Positive AGM

Mears - Shrugs off director selling

NETeller (August 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.

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