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Tech stocks - Mindtree

Posted on Feb 07, 2008 under Stock Reccoes

As Gargeeboy stated earlier there are lots of brokers involved in being correct about predicting. And so, let me say, at the outset correct your perception, that this is not a prediction, but my personal insights on some of the companies. Secondly, I am not a broker.

Before we proceed, the usual disclaimer - That I hold stock in the companies I am suggesting. So, when I am reccoing, I am as liable to market risks as you might be. Forget market risks, I expect you to consult some financial wiz before you invest.

Having said that, let me inform you that you are always safe if you invest for the medium term. Medium term is 2-5 years in stocks and even a company who barely makes profit would still see some good returns – much better than a bank. Again, if you feel like you have some spare cash only. (That's my philosophy. Investments for into mutual funds and any spare cash into equities. That way, I am not hard pressed to sell when the market is down) It doesn’t pay to invest hard earned money and then bite your nails each time you see the market oscillate.

The company Mindtree Consulting
Founders – Ashok Soota, Subroto
Current market price -370 Less than offer price) The stock was oversubscribed over a 100 times

Reasoning – Mindtree is going in for rapid growth during the past few months. They have completed one more floor at Global village and now the 4th floor has been completed.  In the meantime, they are also completing a R&D center in Chennai probably in the first week of April.  Each floor is  capable of housing 600 - 800 people.

They are also hiring 2000 -3000 people in the short term ending March 31st 2008.
Some of their upcoming projects other than the ones mentioned.
And of course they are currently in talks with another company to takeover… (They just might!)

They have an ODC agreement with HP for printer testing.  This would require around a 100 to 200 people for testing printers over IPV4 and IPV6 protocols.

They are launching a new initiative with another company which involves a R&D capacity of 600 people.

Looking at Cisco Telepresence prospects in India. (In the enquiry stage)

Social commitments - Mindtree is committed to Spastics society of India. I was pleasantly surprised to see very touching pictures drawn by children at most of their offices.

Reason for recco - Value stock. It can't go down further than 330 level.
No loss proposition and a safe stock.  Buy period - 2 years. Expect appreciation upto 6 times value. 



Tags: Mindtree Comments: (6)


Imagination - dis day, dat age...

Posted on Jan 31, 2008 under General

This day, that age: What happened today, 3 days back. A clipping from an old newspaper

After digitizing every molecule in space, the world was befuddled with the next big slump. We forget that an ip address has become the physical representation for you, me and everything. ‘Send me a mail to 192.168.1.1’ became outdated as numerics now captured 5 dots(IPV6). As close as it came to being online, it didn't have the gall to pull economies out of recession. Reserve banks and Governors were befuddled as to how to stimulate an economy of ‘surpluses’ and companies were at pains to subsist on a paying model. And then a certain website came out with the biggest invention of them all.

'Virtual'isation of gifts. What this idea did to the world economy is unique. People flocked in droves as they saw virtual endless benefits in it.

You could buy a virtual home while people imagined how to eat, drink and make merry besides the daily rituals in it... The better part of this was imagining how your virtual friends did it. Imagination had a huge part to play in the success of this invention/product. You could virtually imagine 100's of physically impossible postures; about 100s of dishes and how you could virtually eat it in millions of ways at a zillion virtual places. Ah! the life (Day dreaming. Do we need a reason? Remember Mungeri Lal and his Haseen Sapne ?!?).  

Virtual dating became a hit as you could date an actress/actor/girl/boy of your choice at any destination of your choice for 150 points. It also led to virtual marriages and virtual kids and buying those ‘virtual ‘dream’’ homes.

 By giving a virtual representation to your dreams at the site through product pics, the disappointment was obvious. If you received the gift of a virtual laptop, you could imagine it going down all the time while you typed on a virtual keyboard, while it did no virtual work. You could however delete it at your will if you didn’t like a friend or had a recent tiff. People sent gifts to all friends in a frenzy. It triggered a boom in the site first and unable to cope with the demand, triggered a boom in the other sites thus conclusively on the economy. How? If there are limited gifts at a site and you wanted to gift something unique to a friend at an additional cost of points, people were more than willing to design new gifts. This drove people to spend countless hours thinking of new gifts since the site now allowed customized mods. There were specialized sites which provided custom mods to people who had to purchase it from their site. The gifts became massive while the demand rose a million fold as people unlocked value in gifting. The drive was so huge that you even began to earn points back on gifting a friend!

It was referred to as a post-VG (virtual gifts) world and a pre-VG world to indicate the huge progress made. Governments got into it seeing a profit. They now taxed a virtual tax on the gifts you sent to friends. They also charged a virtual gift tax and a shipping tax. Postal charges were extra too. There was a bigger tax for international friends. People began purchasing multiple gifts for the person they loved.

This got the site to introduce another key feature which stimulated the virtual world. You could now send barbs, bullets, dung, or kill people you hated for a price of 1000 MS points. Killers took up these killing contracts for more -2000 points.  The more they added to their list, the bigger was their reputation. The expression ‘To offline a person’ was coined as more people took up killing.

Last month, the company decided to cash in on the bourses looking at the quarterly visits. They priced their IPOS at a medium price and people expected it to be a huge success. On the day of the IPO, people were befuddled. They had forgotten how to apply for IPOs on real paper. People stopped visiting the site and the site had to revert back to a new conjob (read that as invention) to attract people. The site tried to attract people through their own site to invest in the IPO. Unfortunately the IPO failed. When a news channel contacted a disgruntled member of the site, the reply was, 'Why invest money for points? They are different.'

The site had forgotten - Real people spend real time and real money gathering virtual points on virtual space. Real people also spent 'useless' money on maintenance, internet charges and other overheads while being awarded virtual gifts.

 - Sd
Disgruntled reporter

This reported event took place a few days back. Those primitive people – All they ever did was day dream. It appears the lack of excuses for daydreaming made imagination a huge success. Sad to say that one of my ancestors was likely involved with it.



Tags: Comments: (8)


Let me test my diary...

Posted on Jan 29, 2008 under General

The diary is a new feature at MS. Checking out the new features introduced today, I am eager to login more frequently to the site provided there are more gifts. I can already see the dollar sign in my eyes.. Since this is my diary, I can write anything I want on anything I like open to anyone who wants to read it.

Today evening I am paying Way to wealth a visit. I need to invest in Reliance Natural resources and energy fund. I hear the fund has already grossed an unofficial estimate of 3000 crores. That means indirectly, the fund performance would be better since they have greater financial muscle at their disposal....  Unfortunately, one of my friend's does not have his cheque book, so he wants me to gift 10000 in his name. (using my cheque) He has already transferred the money to my account... We are awaiting implementation to be complete and hence not much work at office today.

And since the diary is a new feature, I hear MS is giving out gifts. Hint: So where is my gift?



Tags: na Comments: (1)




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