5NTWK.pngNetSol Technologies Inc. (NASDAQ:NTWK) recorded notable gains yesterday when the company inked a global framework agreement with a major auto finance firm. Nearly 10% increase in price saluted the management for expanding the scope of their operations.

Under the terms of the new agreement NetSol will be providing their services to clients in nine countries, including Japan, Korea and India. The contract announcement doesn’t specify the financial facts behind it though.[BANNER]

Since the company is one of the reporting penny stocks, their adequate market value is more easy to determine. Their profit margins are better than industry’s average yet the P/E is way higher at 42.6 vs industry’s 16.3. P/S on the other hand shows there’s still space for price appreciation, considering 1.52 vs industry’s 3.76 as provided by Reuters financial.

Netsol_logo.jpgThe market cap looks high at $57 million as NetSol has only $6.5 million in net tangible assets. Their stock is rather volatile holding a beta of 2.37, which suggests the investment is risky. Of course beta was influenced by a recent volatility caused by news announcement and increased popularity of the stock.

Considering the mixed situation, the new contract guaranties top line growth, which seems to be the main factor driving the share price at the moment.