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  • Satyam Management Plans to Stay, Unveils Crisis Plan [View article]
    The strange thing is that the CEO did not STEAL the money.

    At times when profit growth was 2% he reported 30-40% profit growth allegedly to keep the stock price up so that Satyam wouldn't be the target of hostile takeovers. So the cash reserves just weren't there in the first place.

    He did not sell any shares to take advantage of the inflated share price. In fact to keep the operation running he took out huge loans using more than half of his 8% of Satyam shares as collateral. A lot of those shares were sold by the institutions that gave him loans and now he maybe has only 3% of Satyam shares.

    Very puzzling..
    Jan 08 13:26 pm |Rating: 0 0 |Link to Comment
  • Infosys Sees Some Customers Delaying Finalizing 2008 IT Budgets [View article]
    From thestreet.com, "INFY..downgraded at Goldman Sachs to Neutral from Buy due to lower visibility, reduced growth outlook, and limited catalysts. See need for increased investor confidence in 2009 estimates, as well as potential impact of U.S. recession. Maintained $45 price target"
    Jan 14 16:35 pm |Rating: 0 0 |Link to Comment
  • Indian Outsourcing Stocks: Beware The Stronger Rupee [View article]
    Eric,

    Dayanand is correct, no way that CTSH is not going to be impacted by rising Indian wages. The key thing is where is the army of the software developers located?

    My pick now is ACN.

    All of my meagre investment money is in INFY and WIT. Otherwise I would now buy Accenture (ACN). Look at it's P/E ratio. I'm an Indian with a US MBA and currently working in a large California IT shop. I have experience of both the top US mgmt consultants and offshore software companies INFY, HCL & Covansys. Our company has sporadically offshored to those three.

    ACN is located at the top of the food chain in this situation. They already have the established elite top level US consultants. Their problem is to rapidly establish a high quality software factory in India, luring away stars from INFY, TCS etc. plus recruiting from campuses.

    That seems easier for ACN to do than for, say INFY, to establish a Mgmt Consulting presence in the US, and EU. Similar to Mittal and Tata making deals with Arcelor and Corus who are higher up in the food chain maybe the Indian companies should buy out ACN

    Thomas
    Jun 27 18:32 pm |Rating: 0 0 |Link to Comment
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