NTWK's CEO bought 279,000 shares in the open market on 12/10/2010. This is in addition of 1.1 million shares purchased by him and his 2 brothers in May 2010 to raise their combined ownership to 10% of the O/S or 4 million+ shares!! You don't see this type of insider buying anywhere.
NTWK is on the verge of a major move up due to positive development in all fronts. The fundamentals can easily support $5.
Key NTWK Highlights:
- 15 - 20c/share net income in current fiscal year 2011 (per recently reaffirmed guidance)
- $40 - $44 million revenues, a 20% growth
- $70 Million market cap
- The CEO and his brother bought 279,000 shares on 12/10/2010. This was the catalyst for the significant gain last week.
- Insiders bought 4% of all outstanding shares in the open market so far this year
- Explosive China growth
- Global alliance with Mercedes Benz....exclusive leasing/financing software provider
- New JV in Saudi Arabia with Atheeb Group ran by the Royal Family
- Buyout candidate
NTWK has focused its attention on expanding its huge success and exponential growth in China/Asia, and emerging markets.
NTWK currently owns 90% of the auto leasing and financing software sector. The company is expanding its Beijing Headquarters to bring in more people and penetrate other high-growth areas like banking/lending/insurance/healthcare/government.
In China alone NTWK has their software running the operations of Mercedes Benz, BMW, Ford, GM, Nissan, Toyota, BYD, and many others
NTWK has recently signed a global alliance with Daimler Mercedes Benz. The initial agreement calls for licenses in India, Japan, and Korea and upgrades in 6 more countries in the region., Eventually this bonanza will spread to the over 50 countries where Mercedes has a big presence.
NTWK's CEO has said in the last CC that there is significant interest in a buyout of the company due to its global footprint, blue chip client, growing revenues and profitability, and low market cap. However, he insisted that he would not consider an offer unless it is North of $8/share.
This past weekend's positive developments between the Pakistan and Chinese governments will be a catalyst for further NTWK growth in China and Asia in general
The following are two major positive news for NTWK which has major operations in China and Pakistan
1. SBP grants license to ICBC
The State Bank of Pakistan (SBP) has granted license to a Chinese Bank "Industrial and Commercial Bank of China (ICBC)," to commence its operations in Pakistan. ICBC is China's largest bank with a market capitalization of $300 billion. The bank is pursuing an ambitious expansion drive in the Middle East and in big cities across Europe.
2. China, Pakistan ink deals worth $15 billion
Burying differences, the entire Pakistani leadership both civil and military was out in strength in the capital on Saturday, along with the business community, to honor Chinese Premier Wen Jiabao on the second day of his three-day visit to Pakistan.
Mr. Wen's visit to the country carries as much weight as the slew of agreements worth billions signed by his delegation. Besides agreements/memoranda of understanding worth $15 billion, Mr. Wen announced a $410-million package for flood relief.
Thia is positive indirectly because some of the larger projects that NTWK was a front runner were postponed because the Pakistan government had the flood relief efforts as a major focus of were $$$ were spent.
One such a project is the $350 million Pakistan Army Digitization Project which is on hold. NTWK and its US defense partner bid on this project and are thought to be front runners because of the excellent relationships, reputations, and products the partners offer.
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