Neteller Update...

[Zag Nutz]

Here is what I referring to when I disagreed with your thoughts.

Neteller has a profit margin of 48%

Asian and European customer bases both grew over 100% during the last fiscal year.

Production costs (COGS) and G&A should decline significantly if there is a complete withdrawal from the US market. If they have 800+ employees today, expect to see significant reductions in payroll costs as employees are terminated.

And fine (stellar actually) by any liquidity ratio.

All of this will change when they have no USA clients, but will it prevent them from being a viable concern?

My guess -

Everything goes down to a smaller scale and they are 20 - 30% of what they used to be, but they remain in operation.

[gone.flying]

[ QUOTE ]
Here is what I referring to when I disagreed with your thoughts.

Neteller has a profit margin of 48%

Asian and European customer bases both grew over 100% during the last fiscal year.

Production costs (COGS) and G&A should decline significantly if there is a complete withdrawal from the US market. If they have 800+ employees today, expect to see significant reductions in payroll costs as employees are terminated.

And fine (stellar actually) by any liquidity ratio.

All of this will change when they have no USA clients, but will it prevent them from being a viable concern?

My guess -

Everything goes down to a smaller scale and they are 20 - 30% of what they used to be, but they remain in operation.

[/ QUOTE ]
Apology accepted [img]/images/graemlins/laugh.gif[/img]

And what do you say to costs of downsizing?

Besides which COGS is not a linear relationship to turnover

Costs of potential shareholder litigation? Costs of potential DoJ Action?

Possibility of this mess negatively impacting on NetBanx?

Meanwhile what estimate do you place on the possibility of Ex-US NT business becoming affected? Surely not zero

Not to mention the possibility that the merchants may implement another preferred payment scheme - Virgin is getting into the poker market - I can't see RB putting up with NT shennanigans

I have lived through the epicenter of similar situations, I paid for my education in the real world & I stand 100% by my assertion that there is significant (Very High) risk here - to deny it would simply be wishful thinking

More than happy to consider any prop bet if you wish

[JPFisher55]

Also, not promptly paying US customers might scare non-US customers away to other plentiful ewallets servicing non-US market.

[billmagnet]

[ QUOTE ]
Also, not promptly paying US customers might scare non-US customers away to other plentiful ewallets servicing non-US market.

[/ QUOTE ]

Unless they are complete idiots whom there seem to be no shortage of in the online gambling community.

[Phil123]

According to the UK paper The Guardian, the FBI have frozen US customers funds held in Neteller:

http://business.guardian.co.uk/story/0,,2006597,00.html

[rcd]

[ QUOTE ]
According to the UK paper The Guardian, the FBI have frozen US customers funds held in Neteller:

http://business.guardian.co.uk/story/0,,2006597,00.html

[/ QUOTE ]

"It is unclear whether the FBI will treat some or all of the funds as proceeds of illegal gambling. One US newspaper report cited Neil Donovan, an FBI agent, saying the funds were being held in court as potential evidence."


Ahhh. It just gets worse.

[Sniper]

[ QUOTE ]
According to the UK paper The Guardian, the FBI have frozen US customers funds held in Neteller:

http://business.guardian.co.uk/story/0,,2006597,00.html

[/ QUOTE ]

This has been debunked as bad reporting...

[By-Tor]

just noticed my Status on the account page has changed to "Uncertified"

probably covered already, but I just noticed right now...

[whaahhahahah]

who debunked it? link?

thanks for all the stuff here

[Sniper]

[ QUOTE ]
just noticed my Status on the account page has changed to "Uncertified"

[/ QUOTE ]

That was Neteller's band-aid solution to immediately stop Transfers...