As brokers warn about the profit prospects for Datalex, investors who bought shares in the October 2000 flotation will be concerned to learn that chief executive Neil Wilson now considers that flotation on the Nasdaq was a mistake. In a weekend interview he said he may have listened too much to his advisers at the time and not relied enough on his own gut instincts.

His problem with Nasdaq is that the onerous quarterly reporting and other requirements have reduced the time senior managers can spend focusing on crucial business growth.

Nasdaq requirements can put a lot of administrative pressure on small and growing businesses but Mr Wilson and his management team at Datalex were well aware of these requirements when the decision to float on the US market was taken.

Datalex shares have fallen from a high of $12.50 to around $2. On the ISEQ, the shares, which floated at €6.84, are now trading around €1.

At the time there was some surprise that Datalex went ahead with its US flotation - markets were falling and the company had to scale back its planned initial offer price sharply. But the biggest negative for Datalex was that it only managed to get one US institutional investor on board through its Nasdaq flotation.

Mr Wilson now feels Datalex should have concentrated on floating on the ISEQ and possibly in London, and aimed for a Nasdaq quotation later when the company had grown larger and stronger.

He may well be right but what should or should not have been done 10 months ago is of little interest now to Datalex investors. What they want to know is can the company meet its target of becoming profitable by the first quarter of next year.

After recent disappointing results and cost-cutting that took out 108 jobs, Mr Wilson considers the target achievable. But deteriorating market conditions will make it very difficult for the company to achieve the necessary revenue growth.

But maybe Mr Wilson's retrospective wisdom should be taken on board by other chief executives considering flotation - listen to your advisers but trust your own instincts!