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The chart
at the time of recommendation
IGTE - (Sold on 5/18/09 for a gain of 69%)
BOUGHT
at $2.96 SOLD
at $5.01
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The following
is the commentary subscribers originally received.
On
January 21st iGate Corporation, a provider of Information Technology
(IT) outsourcing services for large and medium sized businesses
reported 4th quarter 2008 revenue from continuing operations of $51.5
million. This compares to revenue of $53.6 million reported in the 4th
quarter of 2007. On a constant currency basis revenue was actually up
from a
year ago. Earnings from continuing operations was $7 million or 12
cents per share and compares to $3.8 million or 7 cents in the year ago
period. Profitability was helped by the company's focus on cost
management and efficiencies. During the earning's conference call the
CEO said he is confident that
the company's outsourcing model will help IGTE win new customers as the
company's services result in dramatic cost savings for the client.
Gross margin was 40.5% during the quarter, up from 34.4% in the 4th
quarter of 2007.
Operating margin was 14.8%, up from 7.3%.
During 2008 the 2 largest customers accounted
for 25% and 18% of total revenue. Also during 2008 56% of revenue was
derived from customers located in the United States.
Current consensus estimates call for a profit
of 47 cents per share this year. At the current
price the stock has a
forward PE of approximately 6.
IGate has cash and short-term investments
worth $65.5 million or $1.21 per share. Book value is $2.10 per share
and the company carries no debt. At the current level the stock has a
price-to-sales ratio of 0.7 and a price-to-book ratio of just 1.3.
(originally recommended on 3/25/09)
5/18/09-
SOLD FOR A GAIN
OF 69%. DURING THE SAME TIME PERIOD THE
NASDAQ
WAS UP 11%.
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