Bought at 55.40 and thought that I was getting a bargain. Beat by 10 cents. Thinking we might see a little move up. RONG is the 4 letter word. These folks are doing great work with their cloud so I recon I will be waiting for it to come back. These Indian company is making a lot of money and has no debt. The good friends on wall street must have already been short.
I find it hard for it to comeback up in the short term. Please will wait on the sidelines until new CEO has a clear direction. From last nights commentary the focus will remain on services. Plus they tried to improve the bottom line by changing the way they account asset depreciation to make the going CEO look good.
No matter what Shibulal contends, Sikka is inheriting a bag of worms. Infosys is loosing 1/5th of its employee base every year. And usually people who leave are the Top performers.
80% utilization rate is delusional since they do not consider trainees which given their attrition rate should be substantial.
Immigration costs due to enhanced scrutiny and rejections is sky rocketing. They can no longer use L1, H1 , L2, B1/2 at their own peril with sole objective to get their guys here. Besides Indian market seems to be opening up and people would have lot more opportunities hence wages would need to go higher in order to retain talent.
On the broader side, European trouble are just beginning to show up. US market is in consolidation. Its going to be tough 3 quarters for Infosys.