Small Talk: Neteller may be well worth a flutter - if America sees sense

It has been a torrid year for Neteller, which provides internet gamblers with a secure "online wallet" to make deposits (and sometimes withdrawals).

Like so many companies that provide the games, it made the mistake of thinking the US wasn't really serious about strangling the online gaming industry. With its founders facing jail and $136m (£67m) to pay out to settle with US prosecutors, Neteller has been firmly disabused of this notion.

But now that the dust has (more or less) settled, there are reasons for looking to the future with optimism.

Online gaming is still phenomenally popular and growing fast, even with the US effectively shut down. There is a certainly a demand for the service Neteller provides and it is the market leader, with a good brand position.

What is more, it still has $75m in cash, and while the drop in revenue from the US closure looks horrid, the company ought to at least break even this year. Shrewd investors have already cottoned on and the shares, now out of suspension, rallied to 79p from 73.75p at the end of last week.

But there could be more to come from this company. And, who knows, the US might even eventually see sense. Far better to tax and regulate an online gaming industry in the hands of respectable public companies, than leave it to some of the less salubrious operations that still take bets from America's legion of punters.

Saner heads in the US Congress realise that they have tried prohibition once before, and it was hardly a spectacular success. If, when, America reopens for business, these shares will fly. So it might just be worth getting in at ground level.

It's not everyone's cup of tea, but 325 million Harry Potter fans can't all be wrong. Last week's launch of the final instalment of the boy wizard's life went without a hitch, and no, it wasn't magic, it was partly down to the efforts of Aim-listed Publishing Technology.

The reverse merger of Ingenta, the online publishing group, and privately held Vista, a US publishing support provider, formed the group. Vista supplies everything from the software that supports distribution to billing, rights and royalties. Such has been the success of the Harry Potter series that the company had to tweak its software to create enough room for JK Rowling's royalties - which apparently contain more zeros than were at Pearl Harbour.

So far, despite the success of Deathly Hallows there has been little in the way of support for the shares, which still languish at just 1.15p.

Investors with a healthy appetite for risk should take a look - the business is winning new contracts and the handling of the Harry Potter launch proves that no job is too big for its systems.

Although the company has a current value of less than £7m, investors have been put off by the legacy of Ingenta's problems and have largely ignored the potential of Vista. Interim numbers are not due until September. Those results will include the integration costs of the two businesses, so don't expect too much.

But despite it being a minnow, there are some interesting names on the shareholder register like Deutsche Bank, Cazenove and Collins Stewart - none of whom are mugs.

There is no denying Harry Potter has been the publishing phenomenon of the decade. At just over a penny a pop, Publishing Technology looks like an interesting way to jump on the broomstick with the potential for plenty more.

A clear leader among Chinese stocks

London-traded Chinese stocks were no safe haven during last week's sell-off. Bodisen Biotech, London Asia Capital, China Real Estate Opportunities and China Shoto all had stinking weeks, and longer term returns have also been very poor. So Asia Medical Glass will need a bit of luck with Wednesday's initial public offering on Plus Markets if it is to end the current rot.

The company is one of China's largest manufacturers of glass containers for the pharmaceutical industry, and although that only meant 200m units last year, it is building a new kiln that will churn out 1.3bn units before the end of the current year.

The company is not raising any new money when it comes to the markets, perhaps a good thing in the current market. It expects to have a market capitalisation of between £5m and £8m at admission.

This is not a stock for widows and orphans, and investors need to tread with a lot of caution, particularly given the poor return most Chinese stocks have given to UK investors over the last year. However, unlike most of its contemporaries, Asia Medical Glass actually makes a profit. Turnover for the full year 2006 was £3.6m, creating an operating profit of £263,000. Once the new kiln is on line, the company expects to generate significantly higher returns.