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Infosystech - safe buy @ Rs.1500 ????? |
givemegold
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Post: #1  Posted: Fri Apr 13, 2012 8:59 am Post subject: Infosystech - safe buy @ Rs.1500 ????? |
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Nothing much to add --- as of now its safe buy only around Rs.1500.. to avoid surprises 
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vinay28
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| Post: #2 Posted: Fri Apr 13, 2012 9:16 am Post subject: |
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| my belief since last year that there is something seriously wrong with infy management seems to be coming true.
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givemegold
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| Post: #3 Posted: Fri Apr 13, 2012 9:44 am Post subject: |
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| vinay28 wrote: | | my belief since last year that there is something seriously wrong with infy management seems to be coming true. |
Vinay bhai, People at the helm are truly good and professionals. Unfortunately, they are facing troubles from the both sides -Cost & Revenue. Cost is increasing due to high inflation, Visa problem etc...Top line revenues are shrinking due budget tightening of their clients & that is further fueled by the tough competition, undercutting the bill rates. These are all out of their control.
The days of rich valuations of this scrip in particular, and IT sector in general are going - slipping away - and gone.
There is no doubt it is good scrip - only question now is at what price...??
PE20x & above will face hammer.
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givemegold
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| Post: #4 Posted: Mon Apr 16, 2012 10:02 am Post subject: |
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My observation that a buy around 1500 confirmed... Look at the first de-rating signal from no other than JPMorgan that Infy no longer has the privilege to be rated 20x..... but from now serious market participants started saying it should be 15x only..
Therefore, as per JPMorgan 15x at 150EPS would be the top price band they would rate infy.
I took it 10x at the same EPS which stands at 1500. During the ensuing market corrections if you could get it around 1500, it would be nice. Because the probabilities of further price deterioration below 1500 would be much lesser.
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vinay28
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| Post: #5 Posted: Mon Apr 16, 2012 10:09 am Post subject: |
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| I don't know how closely you observe infy management. I feel that all's not well among top guys and they surely don't have the best guy as CEO. What's more, they don't seem to agree who is the best and strongest among them and hence are managing by a majority consensus.
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pkholla
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Joined: 04 Nov 2010
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| Post: #6 Posted: Mon Apr 16, 2012 11:46 am Post subject: |
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| vinay28 wrote: | | I don't know how closely you observe infy management. I feel that all's not well among top guys and they surely don't have the best guy as CEO. What's more, they don't seem to agree who is the best and strongest among them and hence are managing by a majority consensus. |
After exit of NM from active mgt looks like cat dog fight. N Nilek seemed strongest so rest got together and arranged his exit, like Big Bosss!
Similarly with M Pai
Now committee of equals (same level of incompetence)
(I mean look at Wipro: boss man wants his beta to take over but knows his "Rahul" is useless. So he gives flying to 2 pilots same time so plane always about to crash)
(TCS: Ramadorai wants to fly plane some more time so brings in pygmy Chandrasekharan and continues to apply remote control)
All our big IT cos. likely to face squally weather 'cause of internal AND external factors
Rgds, Prakash Holla
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vinay28
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| Post: #7 Posted: Mon Apr 16, 2012 1:22 pm Post subject: |
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| true prakash. I have always wondered how tcs grew in spite of ram and maha. As far as infy is concerned, I suspect shibu is spoilsport. and wipro may be having a major change for good
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givemegold
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| Post: #8 Posted: Fri Apr 20, 2012 5:01 pm Post subject: |
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Today every one is talking about freak trade on nifty future - that happened just few minutes before 2.30 pm.>>> that around 6% downward journey
Well before that our beloved infosys - future hit an intraday low of 1950.. that is a great Rs.500 downward journey -- 20% difference...after hitting a day high of 2459 it hit the bottom of 1950....do wish to see this in tame chart???? have it here
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givemegold
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| Post: #9 Posted: Sun Apr 22, 2012 8:27 am Post subject: |
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Look at the following statements from the top management of Infosys:
News item from ET:
CEO SD Shibulal told analysts last week that the salary reductions may well result in higher levels of attrition.
The environment is volatile and visibility on growth is very limited. That is why we are not looking at salary hike at this point of time.
A former Infosys veteran said it was a "wrong decision" to freeze salaries for all employees. Instead, the pay of senior staff should have been brought down, he suggested
Infosys will tell restive employees angry about a salary freeze that it will make steep cuts to their variable pay for the January-March quarter, risking an exodus of talent to greener pastures.
At a top management-employee meeting held Friday morning, it is learnt that Shibulal had to fend off a barrage of pointed questions from those who attended the meet on why the management withheld the hike employees had duly deserved......in dealing with the worrisome situation that threatens to snowball into a crisis.
My note: Incidentally, on the same Friday, 20-04-2012 around 10.30 am, INFY hit a new low of 1950. INFY bulls be-cautious while venture into adventurous longs in this counter  
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vinay28
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| Post: #10 Posted: Sun Apr 22, 2012 11:37 am Post subject: |
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| I did post a few days ago that, according to my reading, shibu is the problem and that the top gys are getting along. I hope I am wrong. Incidentally, CLSA has written to infy management demanding to know what's going on? A very dangerous development.
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givemegold
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| Post: #11 Posted: Mon Apr 23, 2012 12:45 pm Post subject: |
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| vinay28 wrote: | | I did post a few days ago that, according to my reading, shibu is the problem and that the top gys are getting along. I hope I am wrong. Incidentally, CLSA has written to infy management demanding to know what's going on? A very dangerous development. |
Vinay28 - yes 
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givemegold
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| Post: #12 Posted: Thu Jul 12, 2012 9:14 am Post subject: Re: Infosystech - safe buy @ Rs.1500 ????? |
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| givemegold wrote: | | Nothing much to add --- as of now its safe buy only around Rs.1500.. to avoid surprises |
Once again brought this topic -to remind what was expected from INFY.... sell on every rise with meticulous home work --- 1500 is probably the safe buy as of now...  
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