Virtusa Corp (NASDAQ:VRTU)

CAPS Rating: 5 out of 5

A global information technology services company which uses an offshore delivery model to provide a range of information technology services, including IT consulting, technology implementation and application outsourcing.

Results 1 - 14 of 14

Recs

0
Member Avatar racoveanul (80.18) Submitted: 4/12/2014 3:18:34 PM : Outperform Start Price: $32.71 VRTU Score: -4.09

VRTU has an A for financial health and a PEG less than 1 on Morningstar, so it's one of my long picks.

Recs

0
Member Avatar rknapton (< 20) Submitted: 8/22/2013 5:22:17 PM : Outperform Start Price: $25.88 VRTU Score: +12.83

Long. IT company is growing nicely and trading at a reasonable valuation.

Recs

1
Member Avatar ClandPhoenix (84.89) Submitted: 2/19/2013 3:21:01 PM : Outperform Start Price: $21.83 VRTU Score: +26.93

Someday the business decision makers will pull their heads out of their a** and figure out that cheap now does not always (hardly ever) mean cost effective. I know how they think and I know how software development works. I have a double major in Business Administration and Computer Information Systems. I spent a few years working in middle management, a couple in accounting and am now a software developer. What this has taught me is that there is this pseudoscience (often with many and varying interpretations) out there generally referred to as business math that is treated as a hard science. If I spend X today with an anticipated return of Y per time variable I will have a return on investment of G.

That is nice but if you spend X today to produce a product that does not do what you need it to do to produce Y then time becomes pointless and return is nil. This is where the business minds fail the software industry. They assume Y and short change X.

Do I think Virtusa Corp is producing a valuable product? Not in the least. Do I think businesses thought processes will result in companies continuing to flock to cheaper software production costs without considering all of the variables involved so that they can reduce X as X inflates over the coming years due to worker skill sets not keeping up with software development demand? Absolutely.

Recs

1
Member Avatar Calinvestments (96.69) Submitted: 5/13/2011 1:32:36 PM : Outperform Start Price: $20.37 VRTU Score: +19.50

This is a small/mid cap high growth stock that should outperform the S&P during the bull market.

Recs

0
Member Avatar KingKev (< 20) Submitted: 10/23/2009 2:12:35 PM : Outperform Start Price: $10.00 VRTU Score: +158.38

Winner

Recs

0
Member Avatar Jimboski93 (< 20) Submitted: 3/31/2009 11:18:27 AM : Underperform Start Price: $6.30 VRTU Score: -291.59

undifferentiated offering will continue to drag this company down as bigger, more capable competitors can win on price

Recs

2
Member Avatar 4everlost (29.31) Submitted: 10/20/2008 4:40:39 PM : Underperform Start Price: $6.15 VRTU Score: -395.47

I gave VRTU a red thumb because of their business model. Essentially they are an offshore software development company. The do projects for large customers like British Telecom and Metavante as well as develop software products for software companies using less expensive technical talent, primarily from Sri Lanka. The problem is that they sell people-based products/services and they have fixed costs whether those prople are working or not. In addition, there is very little they can get via economies of scale; they're people writing code and they can't write a piece of code in 1/2 the time by doubling the resources working on it. It's a clean, well-run company that is shareholder friendly but offshore software development is not going to outperform the market.

Recs

5
Member Avatar adraaj (42.25) Submitted: 8/1/2008 12:53:27 PM : Outperform Start Price: $6.83 VRTU Score: +337.85

Good time and price to pick this underwatched small cap. These guys play in the IT outsourcing field and don't have to do much in order to justify their valuation from this point. They are seeing huge growth (30%) in the banking and financial segments during a rotten time for those businesses. Their overall growth, margins, and cash are very promising.

The reason they are down 30% right now is because they took a risk on their biggest customer, Britsh Telecom. Last quarter they invested in preparing some work for them prior to BT approving the budget. At the end of the quarter, BT didn't get the budget approval. So Virtusa made some investments and hasn't been paid. BT is still a customer in good standing, and their largest. So I am guessing the investments made last quarter will still pay off, but this quarters margins and earnings looked pretty bad because of this.

That said, their revenue still grew 15% last quarter even without the purchase from BT. In IT outsourcing, staffing dictates your capacity and they are building a new 6 acre $30MM campus in Hyderabad. Of which $10MM is already invested. They have cash and short term investments of ~$70MM on hand - that's about half their market cap!!

They are already about 40% insider owned. So they have confidence in their business. They also have just approved a $15MM share repurchse over the next year - that's ~10% of the company.

Overall, huge positive moves for this business with a stock that is unduly beaten up right now.

Recs

0
Member Avatar cold5starstocks (92.43) Submitted: 7/31/2008 7:49:13 PM : Outperform Start Price: $6.62 VRTU Score: +355.30

Experiment time... I will pick whatever stocks that are on the cold 5 star list on the last trading day of each month. There is no research involved other what is on the cold 5 star list at the end of each month. Each pick will be for one year. Lets see where this goes...

Recs

0
Member Avatar will2u (< 20) Submitted: 5/13/2008 12:45:16 PM : Outperform Start Price: $11.36 VRTU Score: +154.24

Companies will always look to save. By hiring outside of the company, businesses realize numerous benefits, savings, and tap specialized talent.

Recs

1
Member Avatar Ish100 (80.34) Submitted: 3/10/2008 10:55:35 AM : Outperform Start Price: $10.01 VRTU Score: +181.72

This is an excellent company that has been grown slowly and effectively from small beginnings. It specialises in IT software development. Providing IT services is much less volatile than products. They have a number of blue-chip clients providing a steady revenue stream. The internal set-up allows them to leverage top South Asian software developers with US sales team. The management team are outstanding. The stock has had a volatile ride this year since listing on the NASDAQ - this in no way mirrors the steady growth that the company has been experiencing. Judging from the form 4's that have been submitted some of the management team are selling their stock and/or excercising their options now that the 6 month moratorium since the IPO has expired. I fully expect this stock to recover within 6-12 months. This is an easy chance to double your money.

Recs

1
Member Avatar tenmiles (99.66) Submitted: 2/20/2008 8:49:06 AM : Outperform Start Price: $10.56 VRTU Score: +169.43

Time to go long Virtusa for patient investors.

Rapidly growing IT outsourcing company now trading at almost 40% discount to last summer’s IPO price. Mid-teen ROE, debt free grower with nearly 40% of current market capitalization in cash. Has some client concentration risk as roughly ¾ of revenue tied to ten largest clients, including BP (which signed a 5 year $200 million deal), but this is not unusual within this industry which historically has high repeat business. Management received early lock-up release around $15 which likely contributed to stock’s recent poor performance. Execution risk for any small cap like this, but believe current $10.75 level represents attractive risk/reward entry point.

Recs

0
Member Avatar anontmp (97.98) Submitted: 10/18/2007 8:27:40 AM : Outperform Start Price: $16.49 VRTU Score: +71.76

Very early stages - high risk, high reward pick. There is little analyst coverage and light volume at this stage. If Virtusa can grow earnings as expected (or better) and get more analyst attention, this one could take off like a rocket.

Recs

0
Member Avatar derussel (85.44) Submitted: 8/25/2007 9:55:42 PM : Outperform Start Price: $14.16 VRTU Score: +100.11

American company taking advantage of Indian outsourcing trend.

Results 1 - 14 of 14

Featured Broker Partners


Advertisement