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Infosys Ltd. Message Board

  • rita_22_99 rita_22_99 Nov 19, 1999 4:23 PM Flag

    Infosys Price Unjustified

    I am a curious small time investor and would like
    to air my views on Infosys which I have been
    watching for some time.
    I totally agree that it has all
    the fundamentals to perform well but I strongly feel
    the scrip overvalued and rigged beyond
    imagination.
    Its a cartel of Institutinal Investors working hand
    and glove with the management to boost the scip. The
    constant daily average volume of around 60000 speaks
    out.
    Added to the fact that the ADR is twice the value of
    the Indian scip, the value of the Indian scrip should
    be approx - Rs 17200
    ( $200 * 43 (exchange rate)
    * 2 ).
    Whereas the current price in India is
    just half of the one in US. It is a clear indication
    that the Indian Investor does NOT value it as high as
    the American Counterpart ( or more correctly) its not
    rigged there.
    I am perplexed also when I see the bid
    and ask rates for Infosys...they vary by a couple of
    dollars...
    I would be happy if people can give me a more
    justifiable explanation of the scrip.
    I wonder why the
    regulators are not looking int o such volatile stocks that
    rise astronomically without any reason.
    Afterall
    the real techonological companies with strong global
    presence and marketing skills are here in USA and none of
    them command such hype and volatality.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Except a tranquilizer or a killer shot from SEC
      or Big Investors... don't under estimate the
      investors and analysts on the Street.

      Its good to
      make the money but bad to blinded by the
      glow
      --



      Let market decides overvalue and undervalue
      Go
      with flow and don't get rolled over by elephant
      just
      ride on elephant and nothing will
      stop the
      elephant....

    • Investors always pay a hefty price for a cheery
      consensus. These prices, regardless whether the company is
      good or bad, are outrageous and reflect high levels of
      speculation. All that can be said is beware of this bubble in
      the price. How can such excessive prices reflect a
      true intrinsic value. Investors indulging in this
      excess are bound to feel the pain. Furthermore this is a
      company in a foreign land where there is less regulation
      and one to question, at least question, whether the
      reported earnings are indeed true earnings. Just be
      careful.

      • 2 Replies to krawal
      • just FYI:

        INFY's market cap: Rs 28,772
        crore = $ 6634.4 billion

        Saturday
        NOV 20
        1999
        0014 hrs IST
        1344 EST
        1844 hrs GMT


        Infy at high of Rs 8,780


        INFOTECH major,
        Infosys Technologies, continued its dream run on the
        bourses in Friday trade, peaking to a new high of Rs
        8,780 during intra-day trade on the Bombay Stock
        Exchange, reports our Mumbai bureau. With this, the market
        capitalisation of Infosys has jumped to Rs 28,772 crore, a mere
        Rs 1,129 crore short of ONGC's M-cap of Rs 29,901
        crore. Hindustan Lever has largest market capitalisation
        with an M-cap of Rs 50,237 crore, followed by ONGC and
        Infosys. In early trade on the technology weighted Nasdaq,
        Infy touched a new high of $218 over its Thursday's
        close of $210.
        The previous intra-day high touched
        by Infosys was Rs 8,720 on the BSE. Infosys finally
        closed today at Rs 8,690 on profit booking, a net gain
        of Rs 210 over Thursday's close of Rs 8,580. Back on
        Nasdaq, Satyam Infoway's ADR was quoted at $57, up three
        per cent.

      • Anyway Best Of Luck with your investing..
        The Entire Market is Overpriced, If everything Burns down, then so be it...

    • Hi rita,

      Just my 2c worth of argument
      about INFY stock price.

      In India, the Stock
      price is so high that majority of the trade of the
      stock is done by Institutional investors like Mutual
      Funds, Morgan Stanley of US etc. And as of now, the
      market sentiment in India is dragged down by overall Y2k
      scare, even though it doesnt affect Infosys's
      business.

      Also, the stock price is not in a particular exchange
      solely depends on the

      <b>The real Reason
      why Infosys stock has gone up is the fact that THEY
      HAVE CONSISTENTLY ANNOUNCED on an avergae to 100% to
      150% boost in Revenue for almost the past three
      Quarters!! </b>

      The deals they have stuck with
      Aetna and other big players in other fields for
      software services is huge and will defnitely result in
      similar announcement the coming quarter
      too...

      Wait and watch, some people believe infy will cross
      300$ before the millenium.

      • 1 Reply to nr_setty
      • I whole agree on the strategy , vision and the
        performance of the company. What I fail to comprehend is that
        its not the only company with fundamentals , there
        are a lot of companies with greater global presence
        like Siebel for CRM , IBM , Sun , CSCO etc etc. with
        large volumes and if you watch their daily performance,
        they would rise or fall resonalbly...but I find
        Infosys very speculative. Except for a few enthusiasts
        like hooligan and you , the general perception among
        people is not very encouraging on the way its being
        traded ( and not its perf). If at all the stock is being
        rigged ( that i strongly feel is) , we should realise
        that it cant go on for ever and a first Indian co with
        such good fundamentals shouldnt do it.

    • Its worse in America.

      Amzn has a p/e of
      2000 despite of it
      making losses.

      INFY
      makes profit and tonnes of it.

      INFY has a higher
      gross margin

      partly due to programmers
      like

      you getting paid in dimes(rupees)

      and they
      getting paid in return

      for Dollars.

      Even if
      INFY beats the earnings

      by a dime the P/E falls
      significantly.

      The stock pops back and goes higher

      and higher
      since these guys are

      good in
      economics.

      INFY is there to stay and is comparable

      to MSFT
      of INDIA.

      They can deliver and can do any
      thing

      as far as software is concerned.

      stay put and
      you will double your money

      in next 12
      months.

      Its just the beginning of the
      software

      exports. The actual wave is yet to

      come.


      Its not that people are foolish.

      Its that
      poeple have a much better

      global
      perspective.


      The deal with Aetna last week will

      generata
      billions of rupees or millions

      of
      dollars.


      Economics 101. Make sure you run atleast

      2 miles a
      day. My buddy has made a

      notorious
      observation. All Indian

      women look like little
      elephants.


      Pleas excersice and keep in shape.

      Happy y2k

 
INFY
55.11-0.66(-1.18%)3:12 PMEDT

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