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Netteller has been suspended for a few months now and I am wondering how you see this company now. I want to know if the two that have been arrested are let go with no charges and the stock price still opens lower, is this a good buy. I haven't followed the financials much and don't know what the company will be like without the U.S.

Our investment thesis for Neteller was predicated on its US business going to zero, so that much was expected.

The degree to which the US has elected to enforce some awfully questionable laws has taken us by surprise. One thing that has been brutal is the inability by the company to refund US-based accounts. It's happening, but very slowly.

Neteller is an extremely profitable company, but we are in wait and see mode in terms of the legislation, as the company attempts to stave off a lynch mob. I think that we'll see a minimum of a 40% haircut when it trades again, but beyond that we may find that it offers a pretty good opportunity. Handicapping legal actions is a tough business.

Bill Mann
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