Northgate Information Systems - Strategic Repositioning And Reason To Buy

Red Ninja - My issue was related with insurance and risk but if it suits your agenda to call me "barking mad" then so be it, I seriously don't care as I have been called worse on here by more able posters.

Oranges - yep the stock has taken a knock, thats the markets reaction to events - "has this crippled NIS to bankrupcy as some posters have speculated" I doubt it as NIS is not a local branch of PC World reliant upon passing trade. Northgate's customers are secured under contract, usually between 3 to 5 years producing stable recurring revenues and if anyone bothers to read the accounts anymore "strong Cashflow" to boot.

The only question is has any customer pulled the plug and gone elsewhere "NO" so forecast incomes will remain robust. I agree that management's focus has been diverted, thats only to be expected but I seriously doubt that if NIS was planning any corporate action (like another bolt-on acquisition) that it would be dropped over this event.

Unless the company is plain lying to us the only real problems are Sales and some day to day admin functions incurring disruption but these effects are only limited and short-term as there was no loss of life, so all the staff are available to fix the problem - To what extent services have been affected we will find out in due course but from my own experience customer services and switchboard are fully functioning, from which location I don't know but if this reflects the reality then the Recovery plan performed well.

DYOR