Northgate Information Solutions Share Discussion Threads

[tsmith2] 12/12/2007 15:42

pachandl

see Nimrah's post above

[pachandl] 12/12/2007 15:41

Somewhat peeved (having bought in at c.46 this morning) to see no upward action this afternoon. More importantly, I am rather surprised that there has not been an rns to the effect: 'we note the downward movement of the share price blah blah .... no reason ... but we remain confident of achieving full year expectations .... we are well financed and look forward with optomism etc etc'. Perhaps it will come after close of play and start with the word 'NIS Rights'Issue at 42p' - it had better not!

[tsmith2] 12/12/2007 15:41

I would expect Northgate to have to formally comment on a note which contains basic errors pretty soon.

That explains why I got told news soon

[nimrah] 12/12/2007 15:39

Shares in Northgate IS (NIS) have tanked today and I have had a flood of emails. Apparently a note from Numis suggests that the company may break its banking covenants. I have spoken to those close to Northgate and this is utter cobblers. I would point out that first half cashflow cover was two times and that this is a second half weighted business so full year cashflow cover is likely to be closer to 3 times. Interest rates are falling and Northgate is generating cash so can reduce its debts. So cashflow cover will increase next year. I would expect Northgate to have to formally comment on a note which contains basic errors pretty soon.

You can panic as some investors are doing. Go ahead and sell at 45.5p on an April 2008 PE of 7 falling to 6. If you wish to panic go ahead. It is your decision to sell a stock which is grossly undervalued because of a short term panic based on analysis which the company says is inaccurate. You can choose to believe that the team which has transformed Northgate from a near bust tiddler to a FTSE 250 growth stock just cannot add up. That would be your call.

Or you can not panic you can note that the shares are very cheap and buy some more. I suggest that you do the latter. The stance is "buy."

IS HE TALKING SENSE BOYS

[tsmith2] 12/12/2007 15:31

Numis should, I am led to believe, have egg on the face very very soon

does anyone here subscribe to t1ps, led to believe there is an update on there..?

[jimmy c] 12/12/2007 15:27

a right carry on but somebodys made money. Spoke to my broker and knows nowt so suspect short sellers will be popping corks tonight.

[grlz] 12/12/2007 15:23

i'm surprised it gave up 47 that easily but 21m traded and L2 cooking, not surprising - Basically NIS going from yesterdays "concern" about an xtra 6m interest bill on debt already securitised and majority hedged - to what can only be described as today's panic = buying opportunity.

[tsmith2] 12/12/2007 15:13

jimmy c

NIS

news iminent

[jimmy c] 12/12/2007 15:06

geologic, name some thanks as always lookin for low pe stocks.

[geologic] 12/12/2007 14:58

plenty of cos.on low p/es with good prospects and little or no debts.why take the risk with nis.

[jdung] 12/12/2007 14:48

any news? must have bad thing happen?
if 40 p ? not support lin,( 30p is suport point ?

[tsmith2] 12/12/2007 14:29

brickred

they ARE MORE THAN EASILY SERVICING THE DEBT!!!

Its not Northern Rock !!

[brickred] 12/12/2007 14:28

I don't see how you can manipulate a level of debt that's bigger than the value of a company.

[ards] 12/12/2007 14:26

anyone know what 1h means, I assume a hold

[tsmith2] 12/12/2007 14:26

either the share price is being manipulated or the world is going potty!

The results were robust the prospects are excellent and the shares are marked down over 30% since the results!!!

[ards] 12/12/2007 14:25

Broker Date Rec Pre-tax (£) EPS(p) DPS(p) Pre-tax(£) EPS(p) DPS(p)
Numis Securities... 11-12-07 SELL 39.70 5.50 0.90 51.40 6.70 1.00
Shore Capital 29-10-07 BUY 51.00 6.70 0.90 63.50 7.70 0.90
Altium Securities 10-12-07 BUY 49.50 7.50 0.90 53.20 6.90 1.00
Broker Name With... 10-12-07 1H 6.19 7.51
Arden Partners 12-11-07 NEUT 49.68 6.80 0.80 55.80 7.50 0.90
Landsbanki Secur... 30-11-07 BUY 50.50 6.40 0.65 62.70 7.54 0.83
ABN AMRO 09-07-07 BUY 52.00 6.40 0.80 65.36 7.54 0.90

[ards] 12/12/2007 13:55

midass

I agree about TW tips at the moment. He lacks the big picture perspective and should have called this at least a hold given current debt markets and broker sell note. In fact most of tips recently have been poor timing. Value may be there but need to see what market thinks. I am reminded of AFE and DLG both of which he continued to advise buying all the way down. I am not even going to mention blavod. His call on HMV is also very suspect as is RBS.

[brickred] 12/12/2007 13:55

Well, currently they're worth 45.75p so neither of them are correct.

[jimmy c] 12/12/2007 13:47

one broker buy 85p valuation
one broker sell 50p valuation

does that mean they are worth 67.5p???

someone's avin a larffff.

[tsmith2] 12/12/2007 13:33

near perferct symmetry on an intra day double bottom..52p plus close..
I'd go with £45mn and the maths look very attractive, given the cash generative nature of the biz the debt will be paid back aggressively.

[grlz] 12/12/2007 13:09

just purchased - valuation is crazy - the fall is probably Numis coming out with a sell note putting '08 at £39.7m profit against the consensus £50m

[pachandl] 12/12/2007 12:24

Not only did TW tip it yesterday, but so did the DT. I haven't a clue what is happening but their debts seem eminently serviceable for the next couple of year so I decided to buy (ave 47.58). I'll probably regret it - I think it was TW that used to say (repeatedly): 'never catch a falling knife'

[jdung] 12/12/2007 12:01

noted at low is 22p at some years ago.

[tsmith2] 12/12/2007 11:46

any of the doomnongers any ideas of what cash flow, interest cover and hedging are?

even if u factor in the higher interest charges this is on a PE of 6!!!