Infosys Technologies Ltd. (INFY)

All Comments on INFY

  • commenter
    Ciba Gator
    Jun 26 01:41 PM
    Which IT Outsourcing Company Gives Maximum Return on Covered Calls? [view article]
    Sorry, not sure why the original post was truncated. Here's another try:

    Dan, dude, what the heck are you talking about?!?! You can't ignore time value of money "assuming" that one will hold a stock for the next six months and that capital losses in that time will be erased!!!! The central idea with options is that there IS a time value to ownership and capital. Jeez, man, quit it with the inane ramblings, you're just embarrassing yourself.

    Of course Satyam looks great in your "analysis". You used a high strike price and ignored all the other variables!! Here's another look at your "analysis"--

    Stock price on June-25 $24.50
    Call premium for $25 for Jan-08 = $2.60
    If one buys 200 shares one would invest $4,900
    Max return is ($2.60 * 200) + (($25 - $24.50) * 200) = $620 = 12.7%
    Min return is $2.60*200 = $520 = 10.6%

    THE ACTUAL MIN RETURN IS:
    -4,900 + ($2.60 * 200) = -$4,380 IF THE STOCK GOES TO $0.00

    Dan, you can't IGNORE the value of the underlying stock. You can't ignore time value of money--of course if you pick a $30 strike price you will make "more money" at the "max". If you had run the analysis with a strike price of $50, you would have calculated an even greater "max" return.

    This is beyond sloppy, it's just ignorant. Please try to understand what you are saying befor you say it.     Reply
  • commenter
    Ciba Gator
    Jun 26 01:34 PM
    Which IT Outsourcing Company Gives Maximum Return on Covered Calls? [view article]
    Dan, dude, what the heck are you talking about?!?! You can't ignore time value of money "assuming" that one will hold a stock for the next six months and that capital losses in that time will be erased!!!! The central idea with options is that there IS a time value to ownership and capital. Jeez, man, quit it with the inane ramblings, you're just embarrassing yourself.

    Of course Satyam looks great in your "analysis". You used a high strike price and ignored all the other variables!! Here's another look at your "analysis"--

    Stock price on June-25 $24.50
    Call premium for $25 for Jan-08 = $2.60     Reply
  • commenter
    Daniel Hood
    Jun 26 05:37 AM
    Jim Cramer's Mad Money Lightning Round Picks, 6/22/07 [view article]
    He is working for me Reply
  • commenter
    Daniel Hood
    Jun 26 05:36 AM
    Jim Cramer's Mad Money Lightning Round Picks, 6/22/07 [view article]
    for me Reply
  • commenter
    domnitei
    Jun 25 11:14 AM
    Jim Cramer's Mad Money Lightning Round Picks, 6/22/07 [view article]
    Jim Cramer recommended on June 21st to sell FSLR but the stock is now 7.6% after his recommendation. On June 22nd, he did not mention a single word although FSLR was up $4 after his sell recommendation.
    Whose side is he working for ?     Reply
  • commenter
    sacsharma
    Jun 24 01:34 AM
    Infosys Growing Its Revenues From New Clients [view article]
    Check out INFOSYS trend analysis since 1997.
    sagecapital.wordpress..../     Reply
  • commenter
    Dayanand
    Jun 21 05:00 PM
    My Website
    Infosys Growing Its Revenues From New Clients [view article]
    This a very good point you brought....Can Infosys maintain a growth rate over the next 10 years. The first post in my blog disussed this issue
    annualreportanalysis.b...

    The top 3 reasons for concern are :

    1. Decline in dollar value : Right now 1USD is Rs40.00. As India's economy is growing fast so the ratio is going to decline. Time and again i have mentioned that in 1990 1 USD was Rs 16.00 this was the reason there was no outsourcing that time, plus the infrastructure requitred for outsourcing was also not available.

    2. Can Infosys have 1 million employees by 2015?Infy's strength in 2002 was 10,900 in 2002 . It grew to 52,700 by 2006. This amounts to 49% annual growth. This growth has fueled the company's rise in revenues from 555 mn in 2002 to $2.1bn in 2006.If Infy wants to grow at this pace then its employee strength by 2009 should be 141,000, by 2011 should be 275,00, by 2013 should be 500,000 and by 2015 should be 1mn.

    3. Tax rates after 2009 : Infosys and other Indian IT consulting companies are enjoying a Tax holiday, this is the reason there effective tax rate is in single digits. After fiscal 2009 this holiday is going to go away. Look at the following figures that demonstrate how much benefit they are getting because of this tax holiday.

    For year ending March 31 2007, income before taxes was $936million and provision for income taxes was $84 million. This makes the tax rate 8.9%. If the tax rate would have been around 30% then the net income would be around $680 million instead of $850 million.

    I am not an expert in predicting stock prices...) but looking at fundamentals I guess Infy is a strong buy at the current price of $52.00. It should reach around $75.00 by 2009 and then it would saturate.     Reply
  • commenter
    mike.nim
    Jun 21 03:40 PM
    Infosys Growing Its Revenues From New Clients [view article]
    What do you think is the abnormal growth rate for INFY and the expectations about the term of the growth rate? I've seen some estimates where a growth rate of 25.5% over a period of 10 years with dep. rate of 4.6%, investment rate of 11.4%, working capital rate of 16.64%, tax of 11% - gives INFY an intrinsic valuation of $96.98/share. Some other assumptions used under this scenario include a beta of 1.155, a WACC of 8.47%, ERP of 3%. Does this means that the recommendation on this stock is a buy?

    And by the way, if the excess growth rate period is reduced to 5 years (instead of 10) the intrinsic valuation comes down to $44.7/share. So what the question really becomes if Infosys would be able to maintain a growth rate of 25% over the next 10 years.     Reply
  • commenter
    Dayanand
    Jun 20 07:12 PM
    My Website
    Why is Accenture's Market Cap Less Than Infosys'? [view article]
    Hi Ciba,
    Please dont get furious, I guess it is for people to decide if my posts are worth there time.Even if you would have written great praises about my analysis that would not mean anything to my readers.

    Because I guess they are smart enough to figure out what makes sense, in fact they might find your remarks about Yahoo finance really amusing because most of my readers are directed from the financial blogs section of Yahoo Finance which I guess they find informative.

    Thanks a lot for your time on writing about my blog.
    Dan.     Reply
  • commenter
    Dayanand
    Jun 20 07:03 PM
    My Website
    Increasing Taxes Should Keep India’s IT Biggies at Bay (INFY, WIT) [view article]
    Hi Ciba,
    Please Dont take any of my remarks personally.... infact I have enjoyed chatting with you here in seeking alpha, I did learn a lot. I guess these kind of positive debate keeps this site alive.

    Thanks,
    D     Reply
  • commenter
    Ciba Gator
    Jun 20 05:14 PM
    Why is Accenture's Market Cap Less Than Infosys'? [view article]
    Dude, you've got your picture on the top of this posting and your name attached to each article. It's your reputation, not mine. If you're trying to say that your advice and insights are worthless because seekingalpha is free, then I guess that we shouldn't waste our time reading what you write. I only posted because you seem to put up a lot of information about this sector and I thought that you actually cared about informing and educating.

    Garbage In Garbage Out. I'm disappointed.     Reply
  • commenter
    Ciba Gator
    Jun 20 05:10 PM
    Increasing Taxes Should Keep India’s IT Biggies at Bay (INFY, WIT) [view article]
    LOL, taking the battle to another forum, eh?!

    No argument here. Your original article quoted an analyst who suggested that the tax rates would shoot up, but did not cite the timeframe. Since later in the article his growth commentary is based on quarter-to-quarter growth (I assume this--once again it is not mentioned in the article), one might believe that the tax rate is going to jump up this quarter as well.

    As you rightfully point out, the tax rates do not change until fiscal 2010.

    Yes I believe in FACTS and I do my homework. I simply found your original post to be misleading and I posted a question to obtain a public clarification. Well done!     Reply
  • commenter
    Dayanand
    Jun 20 05:09 PM
    My Website
    Why is Accenture's Market Cap Less Than Infosys'? [view article]
    so if Accenture IR does not care then why are we arguing about???.....Well if I apply your freebie theory then seekingalpha is also FREE so you get what you pay for....HA HA HA Reply
  • commenter
    Ciba Gator
    Jun 20 05:03 PM
    Why is Accenture's Market Cap Less Than Infosys'? [view article]
    Dan,
    I cannot speak for Accenture IR. Unfortunately there are many, many data services out there (Thomson, Reuters, Yahoo, Google, Excite, AOL, CapitalIQ, Bloomberg, First Call, The Markets.com, etc.) and on any number of companies there will be material errors in their databases, especially since those databases are increasingly being populated automatically or by (otherwise intelligent) people who are not experts in the subject matter. If I look at 100 companies, I will probably be able to find 100 errors, some perhaps minor, in their data on the various data services. I can't speak for Accenture's IR, but I suspect that they don't have the time or desire to hunt down and correct every error. But perhaps they would care. Perhaps in the course of your conversation with them, when they are helping you understand their share count, you can point Yahoo's error out.

    By the way, Yahoo Finance is free. You get what you pay for.     Reply
  • commenter
    Dayanand
    Jun 20 05:03 PM
    My Website
    Increasing Taxes Should Keep India’s IT Biggies at Bay (INFY, WIT) [view article]
    Hi Ciba,
    I thought you believed in FACTS and go through the SEC filings for your analysis, so cant believe you are asking such a basic question.

    FYI all Indian IT companies are enjoying a tax holiday from govt of India . This holiday is about to expire in 2009.

    Following is an excerpt from Infy's latest 20-f report. in the section "Risks related to Investments in Indian companies and international operations generally"

    Currently, the Government of India provides tax benefits to companies that export software from specially designated software technology parks in India. These tax benefits include a 10-year tax holiday from Indian corporate income taxes. We benefit from the 10-year tax holiday on Indian corporate income taxes for the operation of most of our Indian facilities, and as a result, our operations have been subject to relatively low tax liabilities. These tax incentives resulted in a decrease in our income tax expense of $224 million, $160 million and $126 million for fiscal 2007, fiscal 2006 and fiscal 2005 compared to the effective tax rates that we estimate would have applied if these incentives had not been available.

    The Finance Act, 2000 phases out the 10-year tax holiday available to companies that export software from specially designated software technology parks in India, such that it is available only until the earlier of fiscal year 2009 or 10 years after the commencement of a company's undertaking.     Reply
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