speak up mr cohen : shareholders on the line

December 7, 2009 - 7:50AM
Chancellor of the Exchequer Alistair Darling:
“Darling told the BBC today that he will scrap a 12.4 billion-pound computer program for the National Health Service that is being developed mainly by iSoft Plc.”

This statement by the Chancellor of the Exchequer Alistair Darling has the potential to become a huge black hole for iSoft.

It will be interesting to see how long it will take iSoft’s CEO/Chairman Gary Cohen to clarify the situation and respond to the market bearing in mind timely disclosure rules.

Cohen really needs to reassure shareholders/ ASX/the market of the full impact the statement by the Chancellor will have on iSoft involvement with NHS.

Only two weeks ago iSoft announced deals to a total of $15mil+ involving NHS.
The question is, how solid are these agreements –
are these deals signed and sealed
what are the cancellation clauses
are the deals subject to approval at higher government levels
can the customer ‘walk’
what are the penalty clauses, if any, for walking?

Many questions Mr Cohen.
The time for answers is now.

The GBP vs AUD argument used in the response to ASX last week will no longer wash.
Let the market/shareholders hear the real story this time around.
If the British Government goes ahead and scrap the NHS IT system, or part thereof, how will this impact the announced 10% ISF organic growth?
This can’t possible still be on track since these new potential UKGov measures were not announced when that growth factor was released on 5 Nov. 2009.

SPEAK UP Mr Cohen !

Disclosure:
I am out watching developments on the sideline for the time being.
A low 60’s s/p is on the chart – that is if that holds.