Why the Netlinkz share price is up 600% in 2019

While the S&P/ASX200 Index (ASX: XJO) enjoyed its best 6-month start to the year since 1991, there was one Aussie cloud solutions company: Netlinkz Ltd (ASX: NET).

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

While the S&P/ASX200 Index (ASX: XJO) enjoyed its best 6-month start to the year since 1991, there was one Aussie cloud solutions company rocketing: Netlinkz Ltd (ASX: NET).

The Netlinkz share price has rocketed 633% higher so far this year as the company has continued to post strong lab testing results and client expansion in the past 7 months.

Why is the Netlinkz share price surging in 2019?

Netlinkz has shown an ability to continue its operational expansion, most recently announcing an expansion of its Chinese distribution network.

Netlinkz announced that a Strategic Cooperation Agreement (SCA) has been signed between Sichuan Meixunda Communications Corporation, a wholly-owned subsidiary of China Communications Services Corporation Limited, and its China-based reseller – JAST Limited.

According to the release, the three major telecom operators in China – China Telecom, China Mobile and China Unicorn are shareholders and customers of China Communications Services.

JAST CEO Yang Chuan was quoted as saying, "I am very excited that JAST has achieved a strategic cooperative partnership with Meixunda. The cooperation with Meixunda will start from Sichuan Province, and gradually expand to the five southwest provinces in China. It is a fantastic opportunity for the distribution of NetLinkz's products."

What else has been fuelling the Netlinkz share price?

In mid-March 2019, Netlinkz announced that Blue Tech (a US Federal Government IT solutions provider) would lab test its virtual invisible network solution (VINs) cybersecurity software which raised shareholders' hopes of future profitability.

The Netlinkz share price rocketed 22% in June on news that Blue Tech's lab testing of its cybersecurity SDWAN VIN software was a success, as the company said it found "no issues with connectivity over Virtual Invisible Networks (VINs) whatsoever."

Is Netlinkz in the buy basket?

While shareholders at the start of the year have benefitted hugely from Netlinkz' 2019 surge, I'm not convinced that its current $0.22 valuation is a fair reflection of its true value.

I'm wary of some of the top Aussie tech stocks given where we appear to be in the economic cycle, meaning I'm more inclined to consider blue-chip dividend stocks such as Commonwealth Bank of Australia Ltd (ASX: CBA) or Telstra Corporation Ltd (ASX: TLS) for the time being.

Should you invest $1,000 in Commonwealth Bank Of Australia right now?

Before you buy Commonwealth Bank Of Australia shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Commonwealth Bank Of Australia wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Five retirees do a conga line dance on the beach celebrating the special dividend announced by Grange Resources today
Broker Notes

Why Macquarie thinks the NZ retirement village sector could be an emerging opportunity for ASX investors

Oceania Healthcare and Summerset could quietly emerge as high-upside plays for patient ASX investors.

Read more »

Excited couple celebrating success while looking at smartphone.
Broker Notes

5 high-conviction ASX 200 shares to buy

Brokers are tipping these shares as buys. Here’s what they rate highly.

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price
Gold

How this ASX All Ords gold stock turned $10,000 into $78,740 in just one year

The ASX All Ords gold miner has raced higher over the year. Let’s find out how.

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Share Market News

US-China tariff deal sparks strong week for ASX 200

Energy shares ripped 5.77% higher while the ASX 200 lifted 1.37% over the five days.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Smiling man sits in front of a graph on computer while using his mobile phone.
Opinions

2 ASX 200 shares that I think are still bargains after the market rally

These businesses look like attractive opportunities. Here’s why…

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed a happy end to the trading week this Friday.

Read more »

Happy woman working on a laptop.
Broker Notes

Macquarie's best ASX 200 share picks in each of the 11 market sectors

Looking for stock-buying opportunities?

Read more »