Netlinkz is getting set to Launch like a rocket in a massive massive way and in my view you only need to put a few things together from all the recent announcements to realise the stock price is very very cheap and as stupid as its sounds could be over 50 cents within the next 6 months.
Keen to see what others think the price could be?
Having read almost every post on hotcopper on Net from Country Bob and Brett64 its very clear investors who take a deep look at the stock are would on first impressions be smart to be cautious based on the stocks history.
I have been buying regularly since the stock come back from the dead and its been an absolute rollercoaster but its given me a chance to accumulate.
Following the recent Investor Update I am very hopeful having spoken to one of the largest shareholders of Net that more will be done by management in communicating the upside of whats possible given no real guidance has been provided which just provides an opportunity for now.
The key points that make me think the stock will reach 50 cents in the short term are
Point 1. Blue Tech - This will be one of the big factors If Blue Tech announce the Netlinkz cyber security software is satisfactory then Blue Tech could roll out the security technology to millions possibly tens of millions of its customers. I quote Following successful completion of the Blue Tech evaluation, NetLinkz will expand its US cybersecurity marketing and sales activities in the US in partnership with Blue Tech and their significantreseller footprint servicing all US Federal Government customers, Defence, Civilian and IntelligenceAgencies.
Question is what price increase would the stock have if this is confirmed?
Point 2 ISofstone - On March 1 Netlinkz entered into a similar arrangement with a Chinese equivalent called isoftstone.isoftstone services some of the largest IT and telco companies in China like China Mobile, China Telecom, Alibaba and Tencent. The summary below is from a broker but a clear way to understand it rather than myself outline how big this could be
" The latter have on-line/mobile payment systems similar to Apple Pay and Amazon Pay.But what's the need? First, whether the security is required for data or for payments, the issue is the same. Mobile phones are mobile computers, very convenient but with not much storage.and they communicate by the insecure, easily intercepted means of radio broadcast. Radio hams been dialling into different frequencies for a century. Encryption is one solution, but it's expensive. Cost is not an issue for important government/commercial documents, but not the best solution when it comes to relatively simple and individually low value data moving between hundreds of millions of bank accounts or between, say, a head-office and its sales team. Encrypting every transaction would slow the system and lift the cost.Now put this in context: there are 680m-700m mobile (radio) phone users in China and currently about 16% of all payments are made by phone. Credit cards are 19%, prepaid cards 12% and digital wallets about 48%, but mobile payments are quicker and easier. i.e. "everyone" has a mobile phone and of course in China much of this data from wallets and cards travels by radio signal not via copper or fibre.The largest mobile payment system is Ali-Pay which is owned by the New York listed Alibaba. Aibiba's reach is global but is focussed on "greater China." Others are WeChatPay (Tencent) and 99Bill but Ali-Pay has about 50% of all greater China payments.These mega IT companies are all intent on getting in the middle between the bank and the customer or they simply want to displace the banks altogether. Once banks went on line, this was bound to happen eventually. For American bank CEOs this is alarming. If the US copies China's usage money wouldn't sit in cheque or savings accounts for long but would be diverted to Ali-Pay or WeChatPay and deprive them of much of the merchant and handling fees which provide a very wide margin for the little effort involved.Last year they earned $90 billion from all the various connection fees. If the China pattern was followed they would lose $40 billion of this straight away, plus the income from money in non-interest paying accounts.Alipay's total "float' in all the wallets is about $270 billon.So, while Netlinkz China offers NET potential for exceptionally high growth in China, it's now not likely to be dependent on China alone. After the US the EU and India are the next target markets.
Isoftstone are in 30 plus countries and quote from the update "Under the Agreement iSoftStone will be providing engineering support to accelerate thepreparation of Netlinkz’s software for large-scale usage"
This is real, what price increase would the stock have when its announced that the technology with Isoftstone's tweaking is now been fully rolled out to Isoftstones customers.
Point 3 GEM Capital a 3.4 Billion Dollar Investment Group providing a facility of 29 Million announced in January before Isoftstone and Bluetech options were announced. There is no way a company the size of GEM would be bothered lending funds unless they were very confident in the future of NET
Point 4 We have ALL been told the Technology Works!!! This is not speculative now it WORKS, The investor presentation released 27th March clearly tells us the pilot with China Telecom was a success I couldn't care about the 36,000 VINS working its about real evidence that they have confirmed to the market that they work and they are now going to roll out sales to CHINA and we know the Chinese want to replace all VPN!
Point 5 - General comments In the presentation that I again received from a source following the stock " we can see the comments about how they explain the technology would link with some of the largest companies in China likeAlibaba and Tencent as well as selling as a services bundle via China Mobile and China Telecom. There are >700m mobile phone users in China – half the population. To get some insight into this brave new world of Apps you might read today in the Australian of mid thirties couple who developed an exercise App called Sweat.These two are apparently worth $487m three years after launching. For anyone under 40 this may seem strange but for the rest of it’s mind-bogglingSweat is not even in the top ten of US exercise Apps but apparently rakes in $100m a year. NET’s software targets a much broader and far deeper market: i.e secure mobile phone messaging which is likely to be relevant for 2-4% of global households and perhaps 5-10% of companies, organizations and governments or at least 5-10% of the staff of these organisations. This applies to voice, text and images (eg gas or electricity metre data broadcast to a central point) as well as storage of text, sound and images in “the cloud.”(eg, sensitive sales figures, tax and medical records etc…i.e. anything that is communicated within a network. There are other “software defined” virtual self enclosed network Apps of this sort, but apparently not offering the high degree of security of the voice message orthe attachment. Security in this context doesn’t just mean private, but protected from theft and interference. As with all price break outs they move in fits and starts with lulls, sudden surges and retracements.Typically the big money comes in after this “still being discovered” stage has consolidated for a while.. It’s very common. No one wanted NEA at 14c. Now funds can’t get enough at $2.70-2.80 where it’s eye-brow raising pricey."
Ok - Big Opportunity ?
If you are not yet following Netlinkzltd on twitter sign up for more updates than what Netlinkz release to the ASX as technically some of the updates are in regards to China Telecom with their views and updates on expansion.
So finally this view and outline is bigger than I had planned but if you do spend the time and read the points above I think its just a matter of time before we receive confirmation of what we already know and that when that actual confirmation arrives this company will through its new distribution strategy and proven technology will be distributed to millions and millions of people around the world it will not be 6 cents.
This confirmation should occur within the next 3 to 6 months and when it does its my view we will see the Netlinks above 50 cents.
Good luck Country Bob and Brett64! and the rest of the shareholders who are either new or who have patiently waited for this time. If you have have been a shareholder for a long time what ever you do enjoy the ride and don't get out too early and not be rewarded for hanging in there.
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Always happy to read a thoughtful commentary. Here's hoping that even some of the potential you suggest is attained. 3 to 6 months translates to 1 to 2 years for this mob i.e. nothing happens quickly, so I am still happy with my 2021 prediction.
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