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.
For more information about Net
Element, visit www.netelement.com
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