Pakistan’s Netsol has been doing quite well recently. Year-to-date the stock, which is traded on the US NASDAQ bourse, is up almost 40%. This is now expected to head even higher as Aeur growth, an analyst firm, has just put a BUY recommendation on NTWK.

Netsol is considered a microcap with quite a lot of headroom for growth. The company’s stock touched $4 last year before falling to $3 and thereabouts. We do expect it will regain $4 levels before the end of 2008. This would represent roughly 40% return to an investor looking to purchase NTWK at its current price of $2.84.

Ameritrade’s news feeds carry this story:

In a radio interview with Chuck Jaffe, MarketWatch senior columnist, Auer noted that investors looking at stocks from the bottom up should not shy away from good small companies — at a time when the market seems to favor large-caps — even if that means going down to Pink Sheets companies to find them.

Auer’s fund is just a few months old, but his firm has used its current system on private funds for years, looking for stocks that have at least 25% year-over-year earnings growth and revenue growth of 20%, and then looking for a combined price/earnings ratio — representing trailing, forward and current P/E — of 12 or less to make sure he’s getting those stocks on the cheap.

[..]

“We’re focused on the numbers for the company,” Auer said, “not the market or the cap size or the sector.”

Further proving that willingness to go anywhere, Auer talked about several microcap stocks, putting buy recommendations on Art’s-Way Technologies and NetSol Technologies….

Here’s a look at NTWK’s year-to-date price curve and trade volumes:

Netsol's been doing pretty well this year

Netsol's been doing pretty well this year

We’ve written about Netsol extensively here at TechLahore, here’s a sampling of some of our previous posts:

Here’s more about Netsol from their official press releases:

About NetSol Technologies Inc.

NetSol Technologies (NASDAQ: NTWK) (DIFX: NTWK) is a worldwide provider of global business services and enterprise application solutions. NetSol uses its BestShoring(TM) practices and highly experienced resources in analysis, development, quality assurance, and implementation to deliver high-quality, cost-effective solutions. Organized into specialized practices, these product and services offerings include portfolio management systems for the financial services industry, consulting, custom development, systems integration, and technical services for the global Healthcare, Insurance, Real Estate, and Technology markets. NetSol’s commitment to quality is demonstrated by its achievement of the ISO 9001, ISO 279001, and SEI (Software Engineering Institute) CMMI (Capability Maturity Model) Level 5 assessments, a distinction shared by fewer than 100 companies worldwide. NetSol Technologies’ clients include Fortune 500 manufacturers, global automakers, financial institutions, technology providers, and governmental agencies. Headquartered in Calabasas, California, NetSol Technologies has operations and offices in London, San Francisco, Sydney, Beijing, Bangkok, and Lahore. To join the NetSol Technologies Inc. email distribution list please visit: http://www.b2i.us/irpass.asp?BzID=897&to=ea&s=0.

To learn more about NetSol Technologies Inc, visit www.netsoltech.com