Value Microcaps Pick Six Lotto 01

[mikeo56]

added to my NKBS today also it is my pick 6 earnings out on the 10th chart looks like it is holding the 2.40 level even though they said they would miss yearly by .10 they still gave guidance of .30 (end of 2nd paragraph) for the year... cash in bank.. hasnt moved the the rest of the market if they come in with a good Q. and people are happy this will really move..

Wilshire Texas Partners Raises $23.4 Million
Texas Capco Funding Received

NEW YORK, July 27 /PRNewswire-FirstCall/ -- Newtek Business Services, Inc. (Nasdaq: NKBS) (http://www.newtekbusinessservices.com), a direct distributor to the small to medium-sized business market, today announced that it's Texas based certified capital company recently concluded a debt offering and raised $23.4 million in certified capital.

Newtek's Capco, Wilshire Texas Partners I, raised a total of $23.4 million which results in $12.0 million in new cash net of expenses and defeasance of the debt. Newtek estimates that through this program and its anticipated results from the upcoming fifth New York State Capco program, it will raise between $15 million and $17 million in new cash this year, or approximately $0.44 to $0.50 in cash per share. This number does not include cash flow from its three core operating businesses.

Barry Sloane, Chairman and CEO of Newtek Business Services, said, "We are extraordinarily pleased at the opportunity to participate in the Texas Capco program and are looking at very attractive opportunities to fund Texas-based businesses with the $12 million in cash. We were disappointed with the reduced allocation due to excess demand from competitors, despite the fact that we applied for the maximum amount of credits by submitting $200 million in irrevocable funding commitments. We believe that the effect of this lower than expected allocation in Texas and its impact on expected earnings of the Texas-based tax credits in the fourth quarter of 2005 may reduce our non-cash income and cause us to miss our 2005 earnings guidance by as much as $0.10 per share. However, even with this reduction, we would still expect earnings of $0.30 per share for calendar year 2005."

Mr. Sloane continued, "Our three primary business lines, SBA lending, merchant processing and web hosting, are all doing extremely well and we anticipate will all be profitable for the second quarter and the remainder of the year. This will be a first time event for the company and we anticipate this trend to continue. We also anticipate meeting street expectations of $0.10 in earnings for the second quarter, to be formerly announced on August 10th 2005. Despite the decrease in Capco activity which will result in a reduction in non-cash income, we are building tremendous shareholder value in our underlying core businesses which are growing quickly. We anticipate that our future will be driven by our non-Capco revenues and business model. These non-Capco, cash revenues have grown from $14 million in 2003 to $34 million in 2004 and are anticipated to be in excess of $60 million in 2005, whereas the non-cash Capco revenue and earnings are declining due to increased competition and reduced levels of state participation in calendar year 2006. We believe that our business model, which anticipates our move from non-cash to cash revenue and from Capco to non-Capco business activity, is producing attractive, rapid growth and enabling us to create increasing net cash flow. Our strategic alliance partners and our clients, which now total over 50,000, have demonstrated their support for our products and services with new business and referrals. We believe we have a great future and are proud of our accomplishments."

About Newtek Business Services, Inc.