Probably my favorite holding. Company makes a system that automatically tests your eyes and spits out a prescription. Over 90% of visits to optometrists are for refinements to prescriptions, which can easily be automated. These guys are like the mafia, though, and don't want anyone else replicating what they can do. They got the product temporarily suspended in Canada, but product is safe and should be sold again there soon. Company has recently doubled its salesforce, the fruits of which should be apparent soon. Company recently made big inroads in Europe, and should continue to grow presence in US. Growth has been 30-50%, P/E ratio around 10, 5% dividend. ~60% of revenue is recurring (rental revenue). Almost nil customer churn. Strong value proposition to opticians, who see this as a huge potential revenue stream. If they sign one big chain (e.g. Wal-mart, lenscrafters, etc.), this could literally go up 20x or more. Extremely illiquid, huge bid ask spread, tiny market cap. I see this as a private equity investment. Management is very friendly and loves talking to investors. My 2nd largest holding (~7.5%).

Annualized have been fantastic, and should continue to be. Book value growth has outpaced stock growth significantly over last few years. A core holding in any value investors portfolio.

Recently added a position. Holding company that is significantly undervalued on a sum of parts basis. Two recent acquisitions account for half of the market cap (they spent $15 million on these). Net that out, and you have a market cap of 15 million. There are 3 main catalysts that could make this a homerun: 1) Punjab land records contract--a finalist along with 3 other companies. Two will win the deal. NTWK's subsidiary is the leading IT firm in Pakistan, and is nearly a lock. PV of the cashflows from this deal would be about $26M, or nearly the entire current market cap 2) Netsol-TiG JV--TiG is in process of transferring 50M of business to the JV. JV has 50% gross margins. On $50M in revenue, net income to Netsol would be $12.5M. Put a 15 P/E multiple on the business, and its worth $187M (6x the current market cap) 3) Continued success and penetration in US/Europe/APAC markets. Revenues growing extremely quickly. Margins improving as development off-shored to Pakistan, and as one-time expenses related to acquisitions go away. Note: My big concern here is management's egregious pay and option plan. Big red flag, but at the current price I am willing to take a small position.