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Infosys Limited Message Board

  • drdoublewide drdoublewide Jul 15, 1999 7:35 PM Flag


    I sold BRCM to buy ITIG... and I'll take my gains
    and triple them further. No way will BRCM triple...
    and it might fall to the 80s-90s when all is said and
    done. That is one volatile stock, and UPSIDE just
    called it one of the most overvalued stocks in the

    INFY is a great company, but I won't buy at the
    current PE levels. Acquiring ITIG at 15 could bring me
    into the INFY fold, but I'll need to see more revenue
    before I buy INFY long.

    But I'm still cheering
    for both Indian companies... talk about a country
    with a great future and past.

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    • I am not familiar with ITIG. But here is my views
      anyway, correct
      me if I am wrong.

      ITIG could be
      stuck with a lot of Y2K earnings which will come down
      to 0 in a few months. Infosys had strategically
      planned the reduction in their Y2K revenue over time.
      Last quarter their Y2K revenue was about 8% (I think).
      They even have an internal fund to take care of
      contigencies in Dec 2000.

      Infosys has an extremely good
      management, who pioneered so many accounting/management
      practices in India. They have a good vision of where they
      want to be in a few years time. Take a look at CEO N.
      Narayanamurthy's interview at

      Infosys has a diversified business all over the globe. I
      don't think you can say the same of ITIG.

      Btw, I
      don't believe in any internet company. I think only th
      ebig ones will survive in the long run. So the
      internet division wouldn't count. (Btw, I don't know what
      ITIG's internet division does. Could somebody tell me

      My 2 cents:)

      • 1 Reply to mthambi
      • ITIG has absolutely no revenue being generated
        from Y2K related work, so they will actually benefit
        from the passing of the millenium. As companies
        finalize their Y2K preperation, those funds will be freed
        up for use in other areas of IT.
        ITIGs internet
        division recently created a very successful web page for
        Volkswaghen, adn as mentioned earlier, is growing very

        ITIGs managment has always been very
        upfront and conservative in their estimates.

    • Good points Dr DoubleWide...
      INFY ADR's will
      always trade at a 10-20% premium to the BSE price
      because of ease of entry and exit on NASDAQ where the
      Float is also minuscule. Anyone who has traded in India
      knows the challenges with the markets there vs the hype
      in the media.

      This price run up does appear
      to be a short squeeze though and one should probably
      wait before entering at this level. (I am biased
      because I bought in India many moons ago at a little over
      a buck per share,post split). On the other hand, if
      they get lots of offshore internet programming or
      enterprise level Java work, they could easily double this
      coming year. Every client I know of has got new
      development work stalled till Y2K gets over with so there is
      going to be a surge of orders anyways for

      Could anyone tell me today's short numbers ? - YAHOO
      only lists Shares Short as of June 8, 1999 = 152.0K
      ,Short Ratio 2.05

      Also, could anyone tell me of
      ITIG's management ethics ? Remember INFY is now reaping
      the fruit of years of honesty and clean and
      transparent accounting practises. Revenue and PE do not a
      complete picture make. Would that more Indian businessmen
      running shops like Syntel etc, learn from them :-)

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