Sep 28, 2007 TTT.net Updates
The last couple weeks have been a very exciting time for the TTT.net portfolio. As our performance dragged as the FED crisis came into place the portfolio dwindled to a low of 139% as little as 3 weeks ago. Since the Bernake opened the Fed window and cut the rates putting the bulls back on top of the game and TTT.net ahead of the pack powered by something, maybe even rocket fuel !!
Chinese stocks have been leading the pack lately and have made a lot of people in killing in this recent market. Thanks to CDS, one of my positions i bought back in June which i just sold for 151% making it the largest $ profit trade yet in my career as a trader. Today the TTT.net portfolio closed at 202.97% over the period of roughly 17 months since this site was launched and i began tracking my performance. As well we are outerperforming the S&P 500 by 1041%. Its been a crappy week for me as im caught a case of the flu and have been laying down in bed the majority of the day, but its been nice to wake up to the sight of BIG GREEN $$’s in my portfolio all week
The market has been very bullish lately as momentum continues to press forward. We’re coming up near all time highs again in the DOW near 14k as todays close was 13,912. It will be interesting to see how this record resistance will pan out for the DOW. I wouldn’t be surprised to see a big triple digit drop in the DOW coming up soon after the recent huge run by the bulls. Guess we’ll see how it goes.
Sep 24, 2007 Small Cap Stock Picks
TechnologiesNetSol Technologies is a multinational provider of enterprise software and IT services to the financial services industry. NetSol helps clients to identify, evaluate and implement technology solutions to meet their strategic business challenges and maximize their bottom line. By utilizing its worldwide resources, NetSol delivers high-quality, cost-effective equipment and vehicle finance portfolio management solutions. The Company also delivers managed IT services ranging from consulting and application development to systems integration and development outsourcing. NetSol’s commitment to quality is demonstrated by its achievement of both ISO 9001 and SEI (Software Engineering Institute) CMMi (Capability Maturity Model) Level 5 assessment, a distinction shared by only 94 companies worldwide. The Company’s clients include global automakers, financial institutions, technology companies and governmental agencies. Headquartered in Calabasas, CA, NetSol Technologies also has operations and/or offices in London, San Francisco, Adelaide, Beijing, Lahore and Karachi, Pakistan. To learn more about NetSol Technologies, visit the Company’s web site at www.netsoltek.com.
NTWK popped up on my technical analysis filter early last week when they announced a record Q4 in which they swung into a late year profit on 84% revenue growth and EPS of .07. This resulted in price action to jump 36.99% on the day and climbing to as high 70% during the filing days session. During the fiscal year 2007′ NTWK has been in a slump with big losses reporting losses of -.09, -.08, -.27, and -.01 respectively for the last four quarters. With the huge jump in Q4′s earnings to .07 its no surprise to see the huge jump in price action this past week. Which was also on the companies record trading volume, a whole 372% increase in volume over any other week in the companies history since going public in 1998.
Even though NTWK reported record earnings of .07 for Q4 they still had quite an ugly year on a profit basis reporting -.27eps annualized for 2007. But this is all expected to change in 2008 as analysts are expecting a turnaround for the company reporting an estimated .21eps for the full year 2008 giving NTWK a low forward P/E ratio of just 6.75x compared to the Software & Programing industry average of 27.8x (according to etrade) making this small cap $44m company look attractive at these low prices near $2/share. Fair value for the company in its industry is estimated around $5.83/share found by multiplying the 2008 earnings estimates of .21 by the industries P/E average of 27.8. Mean price target by analysts are $4/share which would be around 100% gain from todays price.
Fiscal Fourth Quarter 2007 Financial Highlights
— Revenues increased 84% year-over-year to $8.6 million
— License fees increased 137% year-over-year to $2.9 million
— Maintenance fees increased 97% year-over-year to $1.5 million
— Services increased 57% year-over-year to $4.2 million
— Gross margin increased to 62% compared to 34% in the prior year period
— Operating income improved to $1.9 million compared to an operating
loss of $1.5 million in the year ago period
— GAAP net income increased to $1.3 million, or $0.07 per share,
versus a loss of ($0.11) in the year ago period
— EBITDA increased to $2.0 million, or $0.10 per basic and diluted share
— Business outlook and revenue generation for fiscal year 2008 remains
strong as NetSol scales up to deliver another solid year of growth.
|•||NetSol Makes Some Noise|
|at Motley Fool (Thu, Sep 20)|
|•||New Star Analyst Rankings for NETSOL TECH INC|
|StarMine (Thu, Sep 20)|
|•||NETSOL TECHNOLOGIES INC Files SEC form 10KSB, Annual Report|
|EDGAR Online (Thu, Sep 20)|
|•||Wednesday’s Tech Winners & Losers|
|at TheStreet.com (Wed, Sep 19)|
|•||NETSOL TECHNOLOGIES INC Files SEC form 8-K, Results of Operations and Financial Condition|
|EDGAR Online (Wed, Sep 19)|
|•||NetSol Technologies Fourth Quarter and Fiscal Year 2007 Financial Results Call scheduled for 11:00 am ET today|
|Shareholder.com (Wed, Sep 19)|
|•||NetSol Technologies Swings to 4Q Profit|
|AP (Wed, Sep 19)|
|•||Q4 2007 Netsol Technologies Earnings Release – Time Not Supplied|
|CCBN (Wed, Sep 19)|
|•||NetSol Technologies Reports Record Fiscal Fourth Quarter 2007 Financial Results|
|Marketwire (Wed, Sep 19)|
|•||NetSol Management to Present at the Maxim Group Growth Conference|
|Marketwire (Mon, Sep 17)|
Technically NTWK is looking very bullish as this recent jump in share price is back by some very powerful volume which suggests the likely hood of a new bullish trend in the making. Looking at the 3 year weekly chart we can see that price broke out of descending wedge pattern and has since had some profit taking. With wedge patterns like this, many a time price will retest the breakout point before a continuation occurs. So we could expect price to possibly retrace near $2/share before a continuation north takes place.
Looking at the shorter term daily chart we can see that there is some horizontal support near $2/share as well making this point look very attractive for an entry opportunity. As well, when large gaps like this occur price usually takes a trip down near the 13ema or 9sma where it then makes a bounce and continues its progress. Currently the 13ema is trending up and sits around 1.90 currently as of friday. So what we have here is some very strong support in the $2 area which would most likely be NTWK’s point of reversal from a technical point of view.
Overall NTWK looks very attractive at its current prices near $2/share and i think this could be an easy 20% + gain in our portfolios. Short term price target i would say near $3 share which would be a 50% gain if we entered near $2. With the current fundamental turnaround spiked by a record quarter, breakout in the longer term chart, record volume in conjunction with a powerful short term move, and the fact i like this stock makes me think that this stock could be a big winner for us.
I’m looking to buy NTWK most likely during Mondays session.
Optimal entry would be near $2/share.
Short term price target: $3/share
Sep 23, 2007 Bullish Stock Charts
CNEH* – DOH!
ZAAP* – About time it broke its symmetrical triangle!
XING* – looks deeply undervalued, but lawsuits have been screwing with price…
GTF* – FDA approval
SDTH – should we give it another chance?
Hot stocks on my watch list: MENT, NTWK