Saturday, December 10, 2005

India Calling: WSJ/Satyam

One thing we try to do here at is pick up on stories, trends, and stocks before they hit mainstream publications like the Wall Street Journal.

Last Saturday, we shot out a note and strong buy on Satyam (SAY), a global IT consulting and services provider that helps American companies recruit India's engineers (at 1/8 the price an engineer here in the US would ask for):
...the outsourcing boom has been hitting Satyam's bottom line like a ton of bricks. Satyam is a mid to large sized company ($5 billion market cap) that caters to the outsourcing needs of household names like IBM and Lehman Brothers, not to mention 148 other Fortune 500 companies.

With exponentially increasing revenues, awesome visibility here in the states, and headstrong management to carry the firm forward -- Satyam makes a boatload of economic sense for investors looking for an outsourcing play.

Because we believe that demand for both global business solutions and India's world class education will remain robust, we're initiating coverage on shares of Satyam Computer with a strong buy rating.
On Friday, WSJ published an adulatory article on a Janus fund manager whose top pick on India's emerging economy was -- you guessed it -- Satyam:

...a consumption boom powering India's economic growth could slow.

What stocks look good in a more challenging investment climate?

Adiran Lin, investment manager at Aberdeen Asset Management Asia in Singapore, likes information technology services company Satyam Computer.

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