Northgate Information (NIS)

[Mooringsman]

An equal battle between buyers and sellers is going on this morning with 1.4 million shares trading currently around 35.5p. The shares fell yesterday because the Times said NIS had been sounding out the institutions about fund raising and that they may issue a profits warning. This has been denied by Chris Stone (chief exec). The AGM is on 19th Sept, but any profit warning should be issued immediately a company is aware of such a situation under LSE rules. 75% of NIS revenues come from sales made to the Police, NHS and Local Government funded by the taxpayer. The Apr 2002 PE is now less than 14 falling to 11. The company is set to double its earnings this year and make 23% growth next time. I am biased having bought a large chunk this morning. What are your views?

Sam

 

[payneg01]

Hi Sam
NIS has been very good to me on a couple of trades in the past. How-ever other than seeing a little support at this level and hoping for a bounce off the bottom, I'd be very cautious if I was you. I have a feeling I will be back into this stock one day, as I like what it does. (but not yet).

Good luck
Greg