Small Cap Stock Picks: Netsol Technologies (NTWK)
NTWK had treated us very nicely back in the good ol days 07′ raking us in 46% on a kick ass short term trade. Since then price action has been sluggish to say the least bring price down to as low as 1.69 off its high of 4.64 not too long ago. Technically this stock made a strong rebound from its strong base support around 1.75 - 2.00 and did it with some force today as price action rose just over 20% on nearly 1 million shares. With this recent breakout price is back above the 13ema trend indicator placing momentum back in favor of the bulls.
In addition to the technicals looking strong here with NTWK, the fundamental story here looks great as well. With this huge sell-off in price NTWK has become deeply undervalued within the software application industry. With an extremely low forward p/e multiple of just 6.26x earnings this stocks fair value within its industry is set at around 10.45/share as compared with todays closing price of just 2.44. This depression in value and bullish stock chart give us an opportunity to hopefully capitalize on a short term move of 20% or more.
Its also nice to see PR’s like this about the companies products:
NetSol Technologies’ LeaseSoft Product Wins Best Financial Industry Application for 2007 by APICTA
Tuesday December 4, 8:30 am ET
LeaseSoft the De Facto Standard in Lease and Asset-Based Finance Software in Asia Pacific Region
CALABASAS, CA–(MARKET WIRE)–Dec 4, 2007 — NetSol Technologies Inc. (”NetSol”) (NasdaqCM:NTWK - News), a multinational provider of IT services and enterprise software to the financial services industry, announced that the LeaseSoft product suite for asset finance, lease accounting and portfolio management system has won the Best Financial Industry Application Award for 2007. NetSol was recently honored with the award at the Asia Pacific ICT Alliance (APICTA) Awards in Singapore.I’m looking to buy NTWK on a dip in price action in the area of 2.25 or so which is near the midpoint of todays breakout candle.
