July 20, 2006

SpeculatingStocks.com Stock Pick: Newtek Business Services, Inc. (NKBS)

Stock Price: $1.58 (long-term strong buy)

Newtek Business Services, Inc. operates in five principal lines of business and in two additional complementary lines of business. These seven lines of business are certified capital companies, small business loans through participation in the United States Small Business Administration (SBA) program, payment processing solutions, Website hosting services and small business insurance.

NKBS has grown revenue over the last three years from $60.49 million in 2003 to $70.18 million in 2004 to $96.79 million in 2005. Positive net income was generated each year. The company experienced a poor first quarter and has been dropping since.

NKBS is now at support and appears to be extremely undervalued. NKBS is trading significantly below its book value of $2.36.

SpeculatingStocks.com Target Price: We expect NKBS to reach $2.60 within the next 3 - 6 months.