"Perhaps fund manager Jonathan Iseson likes the comparative valuations. With 6% of the sales volume and .004% of the market valuation an argument could be made that NetSol is undervalued as compared to Infosys.
NetSol has been our biggest winner of 1999. We believe in sticking with the winners. We can only hope that many of our members are still holding this stock, and watching it appreciate in a tough market for small stocks. You have a sophisticated fund manager right in there with you."
"OTC Journal, has been paid a fee of $50,000 in cash, and 50,000 shares of restricted stock as compensation for representing Netsol International"
networksolutions.com
OTC Journal
October 9, 1999 Volume II, Issue 47
Email : info@otcjournal.com
URL : otcjournal.com
To OTC Journal Members:
Netsol International (OTC BB: NTWK) Hits New All Time High
Netsol International (OTC BB: NTWK), our best and first profile of 1999 closed at an all time high of $6 on Friday.
We originally profiled this company on January 15th. The Company was named Mirage Holdings at the time, and closed at $3.75 that day. Since January 15th this company's stock traded as low as $1.6875. The company ejected several unprofitable divisions, completed a number of acquisitions, and has applied for a full NASDAQ listing.
Friday's close of $6 puts the stock at an all time high. It also represents a 60% return from the price we originally profiled this Company. This performance is remarkable when one considers that since the market sell-off which began in July micro cap stocks have been trading very poorly on extremely thin volume.
We have provided our members with 20 separate updates on the progress of this company since the January 15th release date. Click Here if you wish to review the archive that contains all of our 20 editions.
On October 1st there was a filing with the SEC which helps explain this stock's outstanding performance. It was disclosed in this 13-G SEC filing that Blue Water Partners had accumulated 561,000 shares of NetSol International's common stock in open market purchases. This represents nearly 1/3 of the estimated public float.
A 13-G filing is required when an entity acquires more than 5% or more of a Public Company's outstanding shares.
Blue Water Partners is an off-shore hedge fund set up in the British Virgin Islands. In the SEC filing it is disclosed that the fund is managed by Wall Street Guru Jonathan D. Iseson from his Long Island office.
If you wish to read this SEC filing yourself, simply click here, and a web page will automatically open with the full
document.
NetSol International provides high quality, low cost computer programming services through its Pakistani based operation. They are the only ISO 9001 certified software company is Pakistan. There are approximately 140 programmers working there, and they are well known for developing the leasing software for Mercedes-Benz finance companies world wide.
There is only one publicly traded comparable company. Looking at the other company may give us a clue as to why a sophisticated hedge fund manager might want to accumulate such a large position in a small company like NetSol.
Infosys Technologies (NASDAQ: INFY)
Infosys Technologies came public in mid March of this year, and opened for trading in the $49 range. Friday it closed at $174 per share for a 255% return this year.
Infosys is an India based software solutions company. Head quartered in Karnataka, India, this company enjoys about $250 million in annual sales, and the stock has been a market leader this year.
NetSol International is a miniature version of Infosys in a sister country. The following table will give you a quick overview of the two companies, and how they compare:
Company Estimated Annual Sales
Market Capitalization Number of Employees
Infosys $250 Million 10.4 Billion 3770
NetSol International 15 Million 50 Million 140
Key Points:
Netsol has 6% of the sales volume of Infosys.
Netsol has 3.7% of the number of employees as compared to Infosys.
Netsol has .004% of the Market Capitalization of Infosys. (we think we did the math right)
Perhaps fund manager Jonathan Iseson likes the comparative valuations. With 6% of the sales volume and .004% of the market valuation an argument could be made that NetSol is undervalued as compared to Infosys.
NetSol has been our biggest winner of 1999. We believe in sticking with the winners. We can only hope that many of our members are still holding this stock, and watching it appreciate in a tough market for small stocks. You have a sophisticated fund manager right in there with you.
If you don't own this security, you might want to return to our archive and give it another look. It has been our experience that winners continue to be winners.
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1st Net's $36,000 Stock Challenge
We are one week into our second month of the Stock Game. If you are not competing now, you should sign up and start play.
In our Virtual Stock Game contestants are assigned $100,000 in virtual money when enrolling. You can then buy and sell stocks. At the end of each month cash prizes are awarded to the three best performing portfolios according to the following schedule:
$1,500 for 1st Place
$1,000 for 2nd Place
$500 for 3rd Place
You can sign up to play the Stock Game at the following web site: 1stnetstockgame.com.
We discovered that a small numbers of players in the first month were using loopholes in the technology to create artificial profits that couldn't possibly be replicated in the real world, so we made some rule changes. They are as follows:
No stocks under $1.
All buy trades will be executed at the offer.
All sell trades will be executed at the bid.
The game will prevent players from selling any shares they have purchased until at least two hours have passed.
No trades over 10,000 shares.
We believe that these new rules will create a much more realistic trading environment. Good luck.
We have two companies sponsoring the Stock Game this month. StockGroup.com, which has recently introduced its new supersite for small and micro cap investors. Please visit their new super site at www.smallcapcenter.com.
Our other sponsor is an on-line brokerage firm that we believe is the best on-line firm in existence today for active traders: Trade Portal. Their trade execution software and back up systems are the best in the industry. Please visit their web site at www.TRADEPORTAL.com
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Links to Free Downloads
1st Net and InterVu Audience Manager Software
InterVu EyeQ Multimedia Manager
Crayon Crawler - Web safe environment for Children
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Disclaimer
The OTCjournal.com Newsletter is an independent electronic publication committed to providing our readers with factual information on selected publicly traded companies. All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible. All statements and expressions are the sole opinions of the editors and are subject to change without notice. This profile is neither an offer nor solicitation to buy or sell any securities mentioned. This newsletter is owned by SSP Management, Inc, a wholly owned subsidiary of 1st Net Technologies, Inc ("1st Net"). While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. The editor, members of the editor's family, and/or entities with which they are affiliated, may own stock in and have other financial dealings with the companies who appear in the publication. To that degree, this newsletter should not be regarded to be an independent publication. SSP Management, the parent company of the OTC Journal, has been paid a fee of $50,000 in cash, and 50,000 shares of restricted stock as compensation for representing Netsol International for a period of one year. The OTCjournal.com critiques may contain forward looking statements relating to the expected capabilities of the companies mentioned herein.
THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN CONSENT OF THE EDITORS OF OTCjournal.com.
We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission ("SEC") at sec.gov and/or the National Association of Securities Dealers ("NASD") at nasd.com. We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at sec.gov. Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.
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