Sign Up NowThis Month's Tiny Gems - January 2010

NetSol Technologies Inc. (NASDAQ:NTWK)
General Environmental Management Inc. (OTCBB:GEVI)
Newport Digital Technologies Inc. (OTCBB:NPDT)




NetSol Technologies Inc. (NASDAQ:NTWK)


NetSol Technologies Inc. (NASDAQ:NTWK) is a worldwide provider of global business services and enterprise application solutions. The company has a global footprint with operations in such diverse locations as San Francisco, Beijing, London, Adelaide, Riyadh and Bangkok. This broad physical base of operations is an example of NetSol's corporate philosophy of seamless integration as exemplified by their core BestShoring practices, which are designed to eliminate the normal risks associated with outsourcing.


The company prides itself in delivering high-quality, cost-effective solutions that are designed to meet a client's specific needs. NetSol provides customized solutions to a number of industries ranging from hospital/healthcare information management systems and SAP consulting and services, to credit and finance portfolio management systems, including systems integration and technical services.


Netsol's operating trends have moved nicely toward the positive and the company appears to be well positioned with its core product offerings as it expands into new international market opportunities. An example of these new opportunities was the company's recent award of a $2 million software and IT services contract with a new joint venture auto finance company based in China. China is, of course, now the world's largest vehicle market, surpassing the United States this year, so the potential for expansion in this area is vast.


The company is aggressively expanding in China in order to capitalize on the rapid growth in the Chinese economy. Netsol expects that the growth of their China business will help in significantly enhancing revenues and earnings going forward. The company hopes to grow its China-specific revenue to 25 percent of total revenue for the 2010 fiscal year.


NetSol may have reached a crucial point for the company and is moving towards long-term, sustainable profitability. At the end of the last quarter, NetSol had $22 million in backlog which positions the company to show year-on-year growth and profitability. That backlog, together with the company's expansion into the Asian markets, and their ability to provide customized, high-quality, cost-effective products and services, bodes very well for NetSol's future.




General Environmental Management Inc. (OTCBB:GEVI)


General Environmental Management Inc. (OTCBB:GEVI) recently completed the acquisition of Santa Clara Waste Water (SCWW), a profitable full-service environmental services company focusing on waste water treatment. SCWW has been doing business for over 50 years and has treated more than 2 billion gallons of waste water. It’s listed as one of the top 100 privately owned non-hazardous waste water utilities in the country.


The acquisition was financed through the issuance of six promissory notes, totaling $9,003,000, along with warrants for the principals of SCWW to purchase 425,000 shares of GEM common stock. The interest rate for the notes is 6½% per annum. Two of the notes, totaling $3,778,000, are convertible into a total of 15% of GEM’s common stock on a fully diluted basis.


The acquisition is seen as one of several major actions taken by General Environmental Management (GEM) to improve the company’s balance sheet and focus on new and more profitable markets, including the sale of GEM Mobile Treatment Services and the execution of an agreement to sell the field services business unit. The company firmly believes that its hard work will pay off once they’ve fully transitioned to the faster-growing water treatment and waste-to-energy markets.


GEM CEO, Tim Koziol, commented earlier on the moves, “Taken together, these strategic moves have created a foundation for GEM to take advantage of opportunities that we believe will lead to profitability and positive cash flow in the coming year. Our shareholders should look at the current quarterly report as a reflection of a work in progress. Our intention is to continue to focus on higher margin business opportunities in the water treatment and waste-to-energy markets in order to maximize shareholder value of our company’s stock. We are very pleased with the progress and advancements the company has made the past few months, especially when considering the difficult economic environment.”





Newport Digital Technologies Inc. (OTCBB:NPDT)


Newport Digital Technologies Inc. (OTCBB:NPDT) is truly a unique company in the technology marketplace. The company has a technological edge that is provided by Newport Digital's synergistic and exclusive partnership with the two premier research and development powerhouses in Taiwan. Taiwan is recognized globally, similarly to Silicon Valley, as the premier incubator for innovative technological ideas.


The two Taiwanese institutions are the Institute for Information Industry (III) and the Industrial Technology Research Institute (ITRI). ITRI has a stellar track record in nanotechnology, materials and chemical technologies, advanced manufacturing systems, electronics and opto-electronics, information and communications technologies, and biomedical technology. As for III, their strength lies in fields such as RFID and WiMAX with an unrivaled track record in the design and implementation of large scale information systems.


These partnerships not only give Newport Digital access to nearly 8,000 of the best engineers and scientists on the planet but also to the products of their work. The company co-owns all the intellectual property rights that are co-developed with III and ITRI and has exclusive worldwide distribution rights for these technology products, solutions and applications.


In order to take advantage of the rights to all of this technology, Newport Digital is building a global distribution, licensing and sales network of industry-leading partners as well as component suppliers and original design manufacturers (ODMs). This enables the company to combine world-class technology with strong local support capabilities.


Newport Digital Technologies is in an enviable position. It will be able to design and provide tailor-made solutions and applications, using the latest cutting-edge technology, to their customers. With the unique relationship with Taiwan's technology incubators driving the company, Newport Digital Technologies will be able to expand their presence in the marketplace.