Newsletter
NetSol International (OTC BB: NTWK) Overview
January 15, 1999
OTC Journal Newsletter
To OTC Journal Subscribers:
Here is an overview of our January Profile. If what you read interests you, simply click on the link at the bottom of the page, and the full profile will automatically open on your computer screen:
Mirage Holdings (OTC BB: MGHI) is a company that has undergone a major transformation in the last 90 days. On January 8th, 1999, Mirage Holdings announced that it had divested itself of its wholly owned subsidiary, Mirage Collections, and would focus all of its energies on its two technology subsidiaries, Net Solutions Pvt Ltd, and Net Solutions UK. Click Here to read the press release.
Mirage Holdings, Inc (OTC BB: MGHI) currently owns 51% of Net Solutions Pvt Ltd, a Pakistan based corporation and 43% of NetSol UK, a London based corporation. To simplify this profile we will refer to the combined companies as NetSol. Management assures us that by the end of March of this year, Mirage Holdings will own 100% of NetSol and all of it's related and subsidiary companies.
With the divestiture of Mirage Collections, Mirage Holdings' (OTC BB: MGHI) only business interest is NetSol, a software development company with a very compelling and profitable history, and extremely strong growth prospects.
Click here to go to the Mirage Holdings investor relations site.
NetSol's corporate WebSite can be found by clicking on http://www.netsolpk.com. Here you can learn all you need to know about their business.
NetSol is a Pakistan based company which currently employs about 70 software engineers that are highly educated and extremely talented at writing computer code.
- Because the Company is located in Pakistan, there is a high supply of skilled software engineers, but labor costs are only 1/50th (2%) of the cost for the equivalent talent in the US!
- Since its inception in late 1996, the company has grown 2000% from $250,000 in its first full year of business. Sales are expected to exceed $5 million in this fiscal year which ends in June.
- NetSol has been profitable almost from its inception, and continues to generate about 8% of sales in profits, while at the same time fueling its extraordinary growth.
- The bulk of their business has been in developing software for leasing programs for Mercedes Benz finance companies in 8 different countries on 3 different continents.
- Expansion plans are in place to ramp up their work force of software engineers from 70 to 250 over the next year.
- The company came public in relative obscurity last fall at $5.15 per share. It was a holding company with two retail clothing outlets and a minority interest in Net Sol. In the last ninety days, the Company has divested itself of the clothing business, and has taken a majority interest in NetSol. This completes the transformation of this Company to a profitable software development company with outstanding upside potential. However, it is literally trading as an unknown stock at $1 below the price of the IPO.
- There are less than 800,000 shares in the public float, and only 2.8 million total shares issued and outstanding. At $4, the market cap is only about $11 million. Simple supply and demand laws suggest that even a moderate increase in investor interest could propel this stock to higher levels and increased volatility.
- Because this transformation to a profitable software company has been so recent, investors simply aren't aware of it yet. You have the competitive edge of having this information before the rest of the investing public learns about it.
Here is NetSol's historical financial performance:
1997(audited) *Sales
1998(audited)
1999(estimated)
$258,282Profits (pre-tax)
$2,077,318
$5,000,000
$54,853
$153,050
$400,000
These numbers are very impressive. A Company that opened its doors for business in fiscal 1997, and is now on track to do about $5 million in sales in fiscal 1999, deserves serious investor consideration.
Here's a profitable software development company with the infrastructure to compete for business on the basis of cost that gives them enormous upside potential. Their initial products have been accepted by one of the best companies in the world. Yet the stock still trades in relative obscurity since this Company's transformation has yet to be discovered. Therein lies the opportunity for investors.
For our complete profile on Mirage Holdings, Inc. simply click here. If you have an interest in this Company, and want to be on their mailing list for news releases and updates, please click here, and join their mailing list. You will be automatically notified by E-Mail of any corporate events.
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