Northgate (OTC:NGTEF) is a stock that has been beaten up by the market since the credit crunch and despite a strong year for the share price, it still remains unloved and undervalued. The market has become too focused on falling revenues and exposure to the Spanish economy and has failed to notice management's excellent work in improving balance sheet strength and ROCE. Going forward the business now seems in a position to grow revenues which could lead to earnings upgrades and a re-rating. Today's positive trading update will act as a strong catalyst for markets to take note of the companies improved position, valuation upside of 17%.
The Business and What Went Wrong?
Northgate provides commercial...