NTWK - Sector: Technology---Industry: Software & Programming

[Romantic_lead]

Extremely volitile because of the Pahkistan connection but I would buy:

NTWK

[David Randolph]

4800 shares traded today. I can't buy something with such a low volume. But thanks 

[Romantic_lead]

Hey...this is what I got in an e-mail :

"Today I'll buy 3 stocks mentioned on our Stock Picking Board. I'll spend the day analysing the stocks you bring for consideration and finally, near the closing time, I'll buy 3 of them.

You just show up and if you will bring some nice picks, thanks !"

So I just thought I would send one in.  I didn't know I would be insulted

[David Randolph]

Insulted? Where? I'm sorry your stock only traded 28000 shares today ... this doesn't mean it won't go up, it just doesn't fit my criteria which looks for stocks with 1,000,000 shares plus traded. But thanks and good luck on your investments.

[Ramsburg]

So I just thought I would send one in.  I didn't know I would be insulted

Romantic_Lead,

David is making comments on all the pick made by our member... that takes a lot of time and work.

You did just great in giving your pick, but I don't understand why you say David insulted you

[wiseman213]

NTWK reported record 4Q and FY results last week. It also gave strong guidance for 2006. 1Q 2006 will be reported in less than 4 weeks and should be another record quarter.

Great entry point as the sell-off has stopped and a new uptrend should start tomorrow.


9/14/05 4Q and FY 2005 EARNINGS HIGHLIGHTS:


--- $12.4 M in revenues in 2005 vs. $5.8 M in 2004. This is a 116% revenue growth!. Beat $11 M revenue guidance by 15%

** $19 M - $20M revenue guidance for 2006

--- $4.5 M 4Q 2005 revenues vs. $1.9 M 4Q 2004 revenues. This is a 240% revenue increase.

--- $663 K net income or 6c/share for 2005 vs. a loss of $2.6 M or 33c/share loss in 2004.

--- $235 K net income in 4Q 2005 vs. a loss of $674 K in 4Q 2004.

** 15 - 20c/share net income in 2006. Estimated based on 70% gross margin on $19 M - $20 M 2006 revenues. Gross margin was 62% in 2004 and 54% in 2003.

--- Ended 2005 with $1.4 M in cash vs. $871 K

--- Doubled Stockholders equity in 1 year to over $15 M.

--- Raised $6 million is successful IPO of a subsidiary in Pakistan (not included in balance sheet yet)


Here are the links for the earnings and the guidance (after the CC) releases yesterday:


http://biz.yahoo.com/iw/050914/095256.html

http://biz.yahoo.com/iw/050914/095320.html


FROM THE 10K:

The fiscal year ended June 30, 2005 was a very busy and exciting period for NetSol worldwide. The Company added a few major new customers such as DaimlerChrysler in China, Japan, and New Zealand and Toyota Leasing Thailand and China. In addition, many new customers were added in Pakistan in both the public and private sectors. NetSol signed many new alliances and partnerships in fiscal year 2005. The most significant of all was the joint venture with a UK based company, The Innovation Group ("TiG"). NetSol owns 51% of this new entity while TIG owns 49%. The partnership is designed to outsource the global IT projects of TiG to NetSol in Pakistan.

NetSol made a significant move by acquiring 100% of a UK based software company CQ Systems Ltd. in February 2005. The acquisition of CQ Systems has provided NetSol a very strong and seasoned management team with a mature, profitable, business.

NetSol's global frame agreement with DaimlerChrysler Services ("DCS") qualifies NetSol as a preferred vendor to DCS in 40 plus countries where DCS operates. As a direct result of the successful implementations of some of our current systems with DaimlerChrysler and the signing of the global frame agreement, we are noticing a significant increase in demand for LeaseSoft. Although the sales cycle for LeaseSoft is rather long, we are experiencing a 100% increase in product demonstration, evaluation and assessment by blue chip companies in the UK, Australia, Japan, Europe, North America and Pakistan. In fiscal year 2005, NetSol raised the pricing of its LeaseSoft licenses significantly due primarily to a surge in demand. In spring of 2005, one complete system was sold to Toyota Leasing Thailand ("TLT") for nearly $2.3 million that includes over $1.2 million for license fees.

A number of large leasing companies will be looking to renew legacy applications. This places NetSol in a very strong position to capitalize on any upturn in IT spending by these companies. NetSol is well positioned to sell several new licenses in fiscal year 2006 that could potentially increase the sales and bottom line. As the Company sells more of these licenses, management believes it is possible that the margins could increase to upward of 70%. The license prices of these products vary from $100,000 to an excess of $1,000,000 with additional charges for customization and maintenance of between 20%-30% each year.


TARGET $3+. Institutions will start buying soon.

[fous]

Great pick Mr. Wise!

I think this is gonna be a huge % gainer in the months to come. I think i might just have to take the risk as well and buy before the financials are released to catch the train at the station before it leaves without me. Even to buy after the financials would be a great move(its alot safer) but could be less profitable. But better safe then sorry And as long as the financials are good.

Their has been many good PR's this quarter about new contracts and partnerships have been entering to create more revs$$$ in the amounts of millions. Already in the first 3 quarters of this year it has beeten every years total revenue since 2002!!

REVENUE
Quarters2002      2003               2004           2005
SEP             1,130          653             973               2,058
DEC             857           946            1,208               2,723
MAR             855           914            1,701               3,191
JUN             736          1,232            1,867    
Totals: 3,578        3,745             5,749             7,972

As well the EPS have been negative since 02' and have been positive every quarter this year!!

This company was once trading at 400/share! I think it's finally getting its act together and lookin to make a reversal.

I bow to the Wiseman

Heres some TA

NTWK is creating a symetrical triangle and if it breaks out of it, which i think it will on heavy volume on wednesday with the release of its financials. But hey maybe it will Today! i plan
buying at the open. As well which would be an even better technical signal and a safer place to buy, would be a break of the Looooonnngg decending trendline thats been forming since 03'. Hopefully the year end results will give Netsol enough adrenaline to break right through it

Best of luck,
-Fousc

take a gander at the charts if you will

[wiseman213]

Fousc,

Thank you very much for the excellent feedback/input.

Wise

[slt2005]

NTWK is breaking out on high volume.

Wise....you have the MIDAS TOUCH my friend. Thanks!!

[fous]

In this morning @1.98. Looks like the public or some insiders are anticipating the release of the financials tomorrow. Hope we got a nice break away gap tomorrow morning!. Also looks like its breaking out of the ascending triangle on heavy volume i'll post the chart a couple hourse after the close.

What do yah say we make some money tomorrow eh?

-fousc

[bigdogs99999]

Wiseman,
I really like this pick.  With a $28 million market cap and all the new contracts, seems sound fundamentally.  I noticed particularly the ttm revenues of about $10 million and the following note in this summer's 10Q...surely it could lead to a big jump in market cap if it comes to fruition ... and anticipation is so sweet.  Dave

TiG Joint Venture. In December 2004, NetSol forged a new and a strategic relationship with a UK based public company TIG Plc. A new Joint Venture was signed by the two companies to create a new company, TiG NetSol Pvt Ltd., with 50.1% ownership by NetSol Technologies, Inc. and 49.9% ownership by TiG. The creation of this joint venture would provide new revenues for NetSol as TiG plans to outsource the development load to NetSol through this joint venture. According to recent figures of TiG, they have approximate revenue of over $120 million of which approximately $50 million of that revenue is generated from technology business. Both companies anticipate much of TiGs technology business to be outsourced to NetSols offshore development facility in the next few years. 

[wiseman213]

Bigdogs,

Great post.

BTW, I am moving some of my PDEX money into NTWK because there is greater short-term potential with NTWK

[fous]

Well we couldn't have asked for a better day from NWTK.  Price action broke out of both the longterm descending trendline and the symetrical triangle on heavy volume and a decent price surge. This looks like its going to be a great pick on behalf of the wiseman. Though i think i'll wait until tomorrow to  congratulate you (If things go are way). Let all of us who have a posisition in this stock hope for the best tomorrow morning

-fousc

Today's price action 9/13/05

[usedcasting]

Report looks very good.
Great Find.
Good Trading

NetSol Technologies, Inc. Reports Financial Results for Year-End Fiscal 2005
Wednesday September 14, 7:30 am ET
Revenue Surges 116 Percent to $12.4 Million; Company Delivers First Profitable Year With Net Profit of $663,325 or $.06 EPS

CALABASAS, CA--(MARKET WIRE)--Sep 14, 2005 -- NetSol Technologies, Inc. (NasdaqSC:NTWK - News), a developer of proprietary software applications and provider of information technology (IT) services, today reported revenue for its fiscal year ended June 30, 2005, of $12.4 million, a 116 percent increase when compared to revenues of $5.8 million for fiscal 2004. Net income for fiscal 2005 was $663,325, or net income per weighted average share of approximately $0.06 compared to a net loss of ($2.6) million, or a net loss per weighted average share of ($0.33) for fiscal 2004.

[wiseman213]

WOW!!

They've even beaten the preannouncement numbers by over 10%!!!

Huge 4Q. great improvement inthe balance sheet.

Fantastic turnaround!!!