NetSol Technologies, Inc. ($NTWK) Stock | Company Announced New $100 Million Contract with NFS Ascent


NetSol Technologies, Inc. (NASDAQ: NTWK)


NetSol Technologies, Inc. (NTWK), a business service and application solutions company yesterday announced new-signed contract with NFS Ascent. The contract is valued at more than $100 million.


NetSol Technologies, Inc. CEO’s Comments

“This is a transformative agreement for NetSol, representing the largest contract in the company’s history, and a strong endorsement for NFS Ascent from a nearly two-decade-long partnership with our client,” said Najeeb Ghauri, CEO of NetSol. “The agreement also reflects their trust in NetSol and our talented technology professionals. The significant investments we made in our infrastructure and staffing are paying off and building leverage into our business.”   Globe Newswire


NTWK Technical Analysis

NTWK Chart

NTWK gapped up in price yesterday to $7.75, up from the prior day’s close of $6.40, which is a 21% increase on favorable news. Taking a look at the daily chart, we can see the last time NTWK traded above this price level was on October 27th 2013, when it traded at $7.77.  The gap up in price shot right through NTWK ‘s previous 52-week high price of $6.52 that was reached last week.  NTWK does have a low float of 8.95 million shares and is trading over 33 times the normal daily trading volume. Both of these factors make NTWK a prime candidate for the gap and go strategy. NTWK did reach pre market highs of  $9.05, but gave back $1.30 at the open, or equivalent to 14%. For trading purposes, my entry point would have been $7.85 looking for a run to $9. My stop loss would have been $7.65, fearing anything below that and the stock would start to fill in the gap up.


Company Profile

NetSol Technologies, Inc. designs, develops, markets, and exports software products to automobile finance and leasing, banking, healthcare, and financial services industries worldwide. It also provides system integration, consulting, and IT products and services. The company offers NetSol Financial Suite (NFS), an end-to-end solution covering leasing and finance cycle for the lease and finance industry; and NFS Ascent platform, a lease accounting and contract processing engine. Its NFS consists of Point of Sale, a front office processing system for companies in the financial sector; Credit Application Processing System that handles incoming credit applications from dealers, agents, brokers, and the direct sales force; Contract Management System, which enables its users to manage and maintain a contract throughout its life cycle; Wholesale Finance System (WFS) that automates and manages the floor plan/bailment activities; Dealer Auditor Access System, a Web-based solution used in conjunction with WFS; and Fleet Management System to handle fleet management needs. The companys NFS Ascent includes LeasePak, which handles various aspects of the lease or loan lifecycle; and LeasePak Software-as-a-Service to small and mid-sized leasing and finance companies. In addition, it offers LeaseSoft, a full lifecycle lease and finance system for funder market; and LoanSoft for consumer loan market. Further, the company provides NFS Mobility that enables a sales force for the finance and leasing company across different channels like point of sale, field investigation, and auditing. Its NFS Mobility includes mAccount, a self-service mobile solution; mPOS application, a Web and mobile enabled platform; mDealer that provides a mobile platform; mAuditor, which schedules visits, records audit exceptions, and tracks assets; and Mobile Field Investigator that permits applicant detail verification on the go. The company was founded in 1997 and is headquartered in Calabasas, California. Yahoo Finance