April 26, 2001
Volume IV, Issue 37
Email :

To OTC Journal Members:

NetSol International (NASDAQ: NTWK)- Reopens For Trading After Halt

In this past weekend's edition we gave an honorable mention to NetSol International, our all time favorite stock as it was our biggest historical winner. Read the Testimonial Section at our home page for some idea of how good this stock was to us in the last Bull Market.

Coming off an extreme low of less than $1 just three weeks ago, the stock has been on a tear recently, closing at $5.27 yesterday.

The stock was halted for trading this morning pending a significant news release, which helps explain the recent surge in the price of the stock. Today's news release covers a 13D filing with the SEC.

NetSol Shareholders Group, LLC has been formed by a consortium of concerned shareholders with the intent of pursuing the following as stated in the press release: 

"Options under consideration include replacing some or all of the current Board of Directors and executive officers of NetSol with a new management team, merging with or being acquired by another corporation, and attracting additional shareholders, business partners or other investors for purposes of generating additional financing to acquire control of the company."

The OTC Journal believes what you are seeing is the first step in the process of a hostile takeover of this company. Management's corporate performance over the past two quarters is best described as pathetic, and it is clear large shareholders are not prepared to simply take their losses and move on. Today's move leads us to believe this is the first step in a series of events which will take the company in a new direction which may conflict with the wishes of the current board, but is likely in the best interest of shareholders.

As we are writing this edition, the stock has reopened for trading in the $4.50 range, down $.77 from yesterday's close on very light volume. Clearly this news was already priced into the stock, and buyers over the last several weeks are not running for the exits. This implies this news may be the first step in a series of events being engineered by disgruntled shareholders to move the company in the right direction.

Although we have no knowledge of any pending news, don't be surprised to see more come shortly on the heels of today's events. Clearly NetSol Shareholders Group, LLC would not have been formed and filed a 13D without some sort of a game plan for the company.

The absence of sell side volume today leads us to believe investors close to the company recognize today's events are the first step in a series of moves which could take the stock much higher. 

Weakness in the price on light volume could end up representing a great entry level for investors with high risk tolerance. On trailing fundamentals the stock is overvalued in our opinion. However, stocks generally trade on investor perception of the future, and today's move clearly bodes well for shareholder value.

NetSol Shareholders Group, LLC probably has a well thought out plan for the future of this company. Because of our ongoing coverage of the situation we will bring you the news as it unfolds. It will be an interesting learning experience to watch events. We have never watched a hostile takeover of a small company.

Trading Alerts

We were hoping to find one or two trading alerts in large cap names this week. Sometimes the market does not cooperate. If we rebound to 2200 we may come out with one or two Trading Alerts on the short side. Conversely, if the market pulls back into the 1920 area, we will be looking for a couple of ideas on the long side. This week has been a tug of war between the Bulls and the Bears, which has so far been a stand off.

Here is the complete text of the NetSol news release for your review:

Thursday April 26, 9:25 am Eastern Time
Press Release

Shareholders of NetSol International, Inc. Form NetSol Shareholders Group, LLC to Explore Available Options to Maximize Shareholder Value

LAS VEGAS--(BUSINESS WIRE)--April 26, 2001--A group of shareholders holding over 25% of the outstanding shares of NetSol International, Inc. (Nasdaq:NTWK - news) today announced that they are not satisfied with current management of the company, and have formed NetSol Shareholders Group, LLC for the purpose of exploring available options. Options under consideration include replacing some or all of the current Board of Directors and executive officers of NetSol with a new management team, merging with or being acquired by another corporation, and attracting additional shareholders, business partners or other investors for purposes of generating additional financing to acquire control of the company. 

The shareholders, including Blue Water Partners which holds over 21% of the outstanding shares, Dr. Henry Vogel, who owns approximately 6% and PSM International Limited which owns approximately 1%, have filed a Schedule 13D with the Securities and Exchange Commission describing the members of the shareholder group and their intended course of action. 

Forward-Looking Statements 

This press release contains predictions, estimates and other forward-looking statements which include, but are not limited to, statements regarding the likelihood and timing of the closing. These statements are subject to risks and uncertainties and actual results may differ materially from any future performance suggested above. The parties issuing the release undertake no obligation to publicly release any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. 


     For NetSol International, Inc.:
     Greenberg Traurig, LLP, Santa Monica, Calif.
     John C. Kirkland, Esq., 310/586-7738

The OTC Journal is a proud partner of the Online Investment Community. A next generation Online Analyst Exchange providing Members the ability to search, review, track and monitor some of the Internet's best Online CAs (CyberAnalysts). Members have the opportunity to potentially achieve higher returns by viewing top performing portfolios and receiving real-time alerts from favorite CAs. also has a lucrative incentive model for experienced investors and traders who consistently outperform the market. Share market ideas with other like-minded investors, establish a proven track record, provide insightful commentary, attract followers and ultimately become one of the Internet's highest paid and most sought after CyberAnalysts! 

Click here to receive your FREE 30-Day Trial Membership with no further obligation. Sign Up Today! 

The 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.  Moreover, as detailed below, this publication accepts compensation from certain of the companies which it features.  Likewise, this newsletter is owned by MarketByte, LLC.  To the degrees enumerated herein,  this newsletter should not be regarded as an independent publication.

Click Here to view our compensation on every company we have ever covered, or visit the following web address: for our full profiles and for Trading Alerts.

All statements and expressions are the sole  opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities  mentioned. 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, are forbidden by company policy to own, buy, sell or otherwise trade stock for their own benefit in the companies who appear in the publication.

The profiles, critiques, and other editorial content of the may contain forward-looking statements relating to the expected capabilities of the companies mentioned herein.


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 http://www.sec.govand/or the National Association of Securities Dealers ("NASD") at We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at 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.

Unsubscribe Here

You can unsubscribe from this list at any time by Clicking Here and HITTING SEND. If you are having difficulty removing yourself or wish to change your address please go to



The OTC Journal Newsletter is an electronic publication committed to providing our readers with useful information on publicly traded companies. The Newsletter contracts with publicly traded companies and receives compensation from them or third parties as payment for publishing information and opinions about the company and the trading market for their securities. Principals of the Newsletter may also purchase or sell securities of the companies in the open market from time to time. The positions, if any, that the Newsletter or its principals presently maintain in the securities of the companies are disclosed here (click here) and should be considered in making an investment decision regarding these companies securities. The Newsletter and its principals reserve the right to acquire additional shares or liquidate some or all of the positions they may hold in the issuer’s securities at any time in the future without further notice. These publications should not be considered to be independent publications concerning the company.

All statements and opinions expressed herein are those of the editors and are subject to change without notice. The Newsletter maintains editorial control over its publications and the companies profiled therein do not have any editorial rights concerning the information published about them. While we believe all sources of information provided by us and contained in our publication to be accurate and reliable, we cannot and do not guarantee the accuracy of information we received from third parties.

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 express written consent of the editors of


You can unsubscribe from this list at any time by Clicking Here. If you are having difficulty removing yourself or wish to change your address please go to