rbs morgans moves to sell and ceases coverage

Due to copyright concerns, I can't post this morning's note here, but it essentially echoes the key points I have been making. Specifically, as I said yesterday, the Malaysia contract is the spearhead contract for Nexcode, and without Malaysia (or the fact that the Malaysian govt looks to have dumped Nexcode) new contracts will be very difficult to sign.

The analyst also discounts China revenue and doubts the cash will be received.

Here is a quote from the note:
NBS’s management “remains confident that the Malaysia project will recommence”. Following lack of communication by management and a failure to resolve recent issues, we do not share management’s confidence. Given the Malaysian contract was the flagship contract for the Nexbis software and a key reference site, we believe recent problems raise serious concerns about the other Nexbis contracts.

Here is another quote:
"we have no confidence in our [earlier] forecasts or management."

The analyst puts a 14c price target on the stock, which seems to reflect the value of the consulting business. However, the analyst appears unaware that the consulting business is also being wound down.