Atlanta 12/12/2014 8:00:00 PM
MissionIR News - Net Element (NETE) Gaining Momentum in Mobile Payment Space
MissionIR would like to highlight Net Element, Inc. (NASDAQ: NETE), a technology-driven group specializing in mobile payments and value-added transactional services that add convenience to mobile phone users’ lives and everyday commerce. The company’s innovations enable consumers to conduct commerce transactions from their mobile device, while online and offline payment capabilities allow merchants to reliably transact business anywhere and anyhow.
In the company’s news,
Net Element has been building a portfolio of mobile-payment and transaction services over the last couple of years, while making inroads in Russia and several former Soviet bloc countries. Notably, Net Element owns TOT Money, which has become the top-rated mobile service provider by the top telecom provider in Russia.
Net Element has been growing its business in the U.S. and in Eurasia while also aggressively paying down debt obligations. Those movements have recently gotten the attention of IFS Securities, which issued a “strong buy” rating on Net Element stock a couple weeks ago, listing its 52-week price target at $5.50 per share.
In the research note by IFS about Net Element, “The company’s strategic transition toward mobile payment processing and value-added transactional services continue to drive improved performance.” In the immediate couple of hours of trading after the note was released, Net Element stock jumped more than 12 percent above $2 a share.
Net Element started as a company that had several niche social-interaction sites like Motorsport.com Openfilm.com and Music1.com. Since then, however, the company has moved over into the mobile-payments space, which has grown substantially in the last couple of years with the introduction of near-field communications (NFC) in smartphones which allow smartphone users to enter credit or debit card information into their phones and hold the phone up to a scanner at the register to pay for items in retail stores.
But IFS Securities wasn’t just in love with the work Net Element is doing in that burgeoning sector or digital commerce; it also noted the company’s debt-reduction strategy which has significantly improved the bottom line.
“Additionally, the significant debt reduction initiatives undertaken by management lowered its outstanding total debt balance by $13.7 million to $3.3 million at the end of Q3 2014,” said the IFS research note, written by IFS CEO Alex McKenzie.
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