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Nete…Am I bullish ENOUGH?

11 Apr

As i sit here thinking about my blog posts in the articles below and comments made on Stock Twits I can’t help but to wonder whether for all my Bullishness….whether I am bullish ENOUGH even?

I’m beginning to wonder.

Let me explain this in detail to you. In 2016 the Company did 54M in revenues. It was a very good year coming in at 35% growth from the year before.  AND…they did that despite the issues with their mobile division. As i discussed below in an article that issue played an ENORMOUS part in distorting the real growth that occurred mainly towards the end of the year. Were it not for that issue as i discussed below Q4 would have come in at an AMAZING 20M revenues vs the 15.3M it did. In other words…the quarter REALLY was everything I thought it could be in terms of transaction dollars and how they increased throughout the year going from about 405M in Q1 to something really that can only be described as Hypersonic in Q4…at about 1.1 Billion i estimate.

Again…….read those numbers. Q1. 405M  Q4…1.1 Billion. For a company THIS size? To see THAT in the space of 3 quarters ? To quote an old songs lyrics..there’s something happening here that isnt exactly clear.  What is clear though is business entered a Warp drive….Exponential rate of increase.  And again..understand this against the backdrop of this being such a small company. To see that is something really beyond the norm.

In any event…in an article below i outline what might be expected for Q1.  15M vs 11.2M would put Q1 at about the same 35% growth rate they saw last year. It ALSO passes the test I put it through when looking at how Q4 2015 moved into Q1 2016’s results.  In order to keep pace with 35% growth 2017’s numbers i guesstimate would look something like this.

15M………17M…..19M…..21M for Q1 -Q4.  That would equal  72M.

72M…..vs 54M for 2016 would equal a full year 35% growth rate.  Sounds reasonable….right?

Well…maybe….Not.

Let’s look at a few things..shall we?

Review the chart in this post….   https://stocktwits.com/message/79856675

It would appear that based on that chart….the company themselves …who has been VERY accurate with their predictions as detailed on that chart…seems to be predicting MORE than that 72M.  And, more like 77-78M it would seem.

And now..let  us consider this.

LAST year…trans $ in Q1 was 405M.  Q4 was about 1.1B.

REVENUES…in Q1….were about 11.2M.  In Q4…if you FACTOR OUT the mobile issue which REALLY distored the numbers….the growth in revenues from Q1 to Q4 would have been about…….80%.  Transaction $….about 150% growth from Q1 to 4.

Let’s just take 15M then for Q1 2017…..and factor in 80% growth by Q4.

Instead of the 21M……..we’d be at 27M by Q4 this year.

interesting then that THIS would seem to be more inline with the companies chart AND inline with they Hyper growth seen last year in trans. $ and what would have been revenues.

And so…I’m starting to wonder whether 2017 might look more like this…

15M……17M…….20M…..25M.  = 77M

If so, that would put full year growth at 42.6% vs last years 35%.

Mind you…this is more bullish than even I thought but…..its what the chart predicts above. And….its supported by how last year grew.

I think what we need to realize is that this industry is growing and evolving VERY rapidly now. Think of yourself. How do you use your smartphones now? How do you pay bills? It’s just growing all the time. All the different ways that technology is evolving. But still..as i look around i see a LOT of companies that still arent on board yet.

But they’re coming. Soon. And its going to be a mad rush.

Remember what the company has predicted. Global growth from 35B….to 800 Billion.  By 2019 or 2020 even.

Do you see folks? Whats happening here?

WARP DRIVE. EXPONENTIAL GROWTH in the industry.

And…amazingly…our little investment here in NETE just might find themselves an industry leader.

 

~Congo

jmho

do your DD

I’m currently long Nete Stock

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Posted by on April 11, 2017 in Uncategorized

 

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