Patni Computer Systems Limited (ADR) (PTI)

Moving on up!

Bought @ 5.07

Weaker near term economic outlook will bode well for Patni Systems as companies continue to aggresively cut costs. The company is well positioned to capitalize on this trend in the near term. Longer term ... expect competitive pricing pressures and margin errosion.

highest rated investor place and msn

StockScouter rating is 10 and high 3 and 12 month RS.

Too much competition!!

Indian growth and, SAY has their own problems to work through.

> Expensive stock, pathetic performance, relative to peers. Always show meagre revenue grwoth even when industry is good
> In Outsourcing section, the big boys are likely be stronger - end-to-end service providers than pure play call centers
> Indian stocks are in a bubble, along with many emerging markets
> Outsourcing Sector still has long way down

Low PEG and P/E

Got in at 8. Software + India = Win.

This Indian company is an outsourcer of IT services. Should continue to do well because it benefits when companies try to cut costs and it has high repeat business. Most importantly, GG points out that PTI has loads of cash. My calculation is $2.25 cash per share, which is lower than GG's calculation. This company ought to be profitable going forward and its massive cash warchest gives it resiliency on the off chance of bad news.

GG's pitch sounds spot on.

Revenue Growth/Loss (Last 3 Years) ? 25.00%
Profit Margin ? 10.00%
Price to Earnings Growth <1
Debt to Capital (MRQ) ? 30.00%
P/E Ratio (TTM) ? 12
Price to Book (MRQ) <1
4-5 Stars on 11/2/08

Under valued . diversified customer base and Management buy back program announced,,,,but they have not started the buyback yet...are they also waiting for the bottom?!

Cheap stock (p/e of 7) that has been beaten down. High-growth country.

Earnings suprise!

This stock will show the market that it has what it takes to make it in the market place.

I found Patni Computer Systems Limited (PTI) using the CAPS screener and my specifications were as follows:
- Improving value and a decreasing price
- Low PE and a low PB
- 5 years of growing sales
- 5 years of growing income
- Officers with ownership, shareholder interest, and little or no share dilution

My initial criteria was to look 12 months back, 6 months, and then right now for stocks that had a 3, 4, and 5 star rating respectively. Then I got a little stingy and said I only want companies that have fallen in prices over the last year or so. I still had quite a few options so I became down right greedy and excluded all stocks with a PE above 10. Next, the micro caps were lingering, so I wiped the bugs off with a minimum 100M market cap requirement. As my list narrowed I tossed in a requirement that 50 or more all stars outperforms because if the cool kids are doing it... Finally, a manageable list of 10 prevailed and PTI as an ADR stood out.

Indian outsourcing? Questions still remain. What is management like? Do they have a stake in the company's success, are they paying too much for acquisitions, are they paying to much for themselves, and are they diluting ownership? What about the rupee? How many more gains can be made on the failing dollar before we see a dent in margins? What about Indian salary increases? Are there any near term catalyst for increasing the value of the company or the market share? Answering these questions will be the next step on deciding whether or not real money will be invested in Indian outsourcing.

Thanks Caps!

Value