City File: Smith New Court

SMITH NEW COURT rates Logica, the computer software group, as a long-term buy - but not because it has a lot of time for the present management. Once one problem goes, another appears, the stockbrokers say.

Just as the US is turned round, Europe goes into a tailspin. Action is being taken to stem the European problem, but it may not be enough. 'This management is accident-prone; cautious optimism has proved wrong several times to date.' However, the company has a quality client list and intellectual property worth far in excess of its market value. If the present management does not unlock this value, someone else will in the form of a bid, Smith New Court believes.