Bears maul NETeller amid competition concerns

[OPU Bot]

Market Report: Bears maul NETeller amid competition concerns
by Michael Jivkov
17 March 2005


Bear Raiders honed in on NETeller yesterday, bringing an abrupt end to the stock's amazing performance since its float almost a year ago. Shares in the company, which operates an e-wallet that funnels money from online gamblers to betting and casino sites, had soared from an issue price of 200p to an all-time high of 757.5p this month.

But the stock dropped 22.5p to 673.5p yesterday as bears dug their claws into the shares. They took the view that NETeller has got ahead of itself and that the group is bound to encounter intense competition in the coming years as other players enter the market. Bears reckoned the e-wallet business will eventually become a commodity industry.

However, those short of NETeller should beware. Canaccord Capital believes there is plenty more upside in the group's share price. In fact, the broker has a price target of 750p on the stock and was particularly impressed with NETeller's recent