Net Element: Focused To Grow

Quelle: simplywall.st/news/2017/09/22/...ent-inc-nete-could-be-a-buy/

Net Element Inc (NASDAQ:NETE), a software and services company based in United States, received a lot of attention from a substantial price increase on the NasdaqCM in the over the last few months. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Today I will analyse the most recent data on NETE’s outlook and valuation to see if the opportunity still exists.

What’s the opportunity in NETE?

Great news for investors – NETE is still trading at a fairly cheap price. In this instance, I’ve used price-to-book ratio (PB) ratio given that there is not enough information to reliably forecast the stock’s cash flows, and its earnings doesn’t seem to reflect its true value. I find that NETE’s ratio of 4.9x is below its peer average of 8.8x, which suggests the stock is undervalued compared to the software and services industry. NETE’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio.Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 39.50% over the next year, the near-term future seems bright for NETE. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:

Are you a shareholder? Since NETE is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on NETE for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy NETE. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Net Element. You can find everything you need to know about NETE in the latest infographic research report. If you are no longer interested in Net Element, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

Quelle: stocknewsgazette.com/2017/09/21/...te-and-what-should-you-do/

Are Investors Buying or Selling Net Element, Inc. (NETE), and What Should You Do?

Recent insider trends for Net Element, Inc. (NASDAQ:NETE) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of NETE, the data has some interesting implications for where the stock might be headed.

Institutions own 02.38% of Net Element, Inc. (NETE)’s shares. The total value of these holdings, in millions, is $0. Among active positions in the latest quarter, 4 holders increased their positions by a total of 33309 shares, 4 holders decreased the positions by a total of 37365 shares, and 4 holders held their positions. This works out to a net decrease in ownership of 4056 shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 2 holders initiated new positions by a total of 29577 shares and 1 holders exited their positions by a total of 12866 shares. This nets out to an increase of 16711 shares and is a bullish sign for NETE.

In the last three months, insiders executed a total of 5 trades. 5 of these were buys and 0 were sells. Insider ownership increased by a total of 48570 shares, which suggests that NETE’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 7 buys and 0 sells, and ownership increased by a net of 121604 shares.

Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Net Element, Inc. (NASDAQ:NETE)’s short interest is 543000 shares, or 4.05% of the float. This represents an increase of 12% in the number of shares being shorted compared to the previous reading, and implies that investors felt more pessimistic about the stock during the past two weeks.

Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that NETE is a Weak buy, which implies that NETE is expected to outperform the market based on prior trading patterns.

Conclusion

Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Net Element, Inc. (NASDAQ:NETE) is undervalued.