Ciba Gator

Cognizant's Growth Begins To Tail Off

Consensus INCLUDES the options expense according to First Call consensus. This was a clean Beat.

Uh, what exactly is wrong with CTSH growing faster than expected while keeping their costs in check? Sounds like a REALLY GOOD thing to me.

Your EPS analysis is predicated on growth equaling headcount growth, but the utilization increases are allowing CTSH to grow faster than headcount growth. Therefore, your EPS estimates (assuming only 15k headcount/year) understates the true leverage.

What else makes you think that headcount growth will flatten out (except for "evidence" that it will be flat this year)?

Which IT Outsourcing Company Gives Maximum Return on Covered Calls?

The next higher strike price for Satyam is $25 if the stock is at $24.50. Am I missing something?

Which IT Outsourcing Company Gives Maximum Return on Covered Calls?

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.

Which IT Outsourcing Company Gives Maximum Return on Covered Calls?

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