Posts Tagged ‘Industry’

The software industry is going to be ten times bigger in 10-15 years

December 26th, 2010
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Roger Martin is dean of the Rotman School of Management at the University of Toronto. A frequent visitor to India since the past two decades, he has been tracking local companies since his first visit in 1990.

Martin was formerly a director of Monitor Company, a global strategy consulting firm based in Cambridge, Massachusetts, and the author of The Design Business: Why Design Thinking is the Next Competitive Advantage.

He is also a close associate of Alan Lafley, CEO of Procter & Gamble (P&G), the consumer goods giant and an independent director on the board of Research in Motion, the firm that makes Blackberry smartphones.

His upcoming book, Fixing the Game, is about the two biggest market crashes in 2001 and 2008 and what caused them. In this,
Martin will reveal the culprit: the tight coupling of the ‘real’ market (business) with the ‘expectations’ market (the stock market).

In an interview with DNA, Martin says Americans aren’t much bothered about the recent corruption scandals in India. They were more concerned when a group of Americans were killed at the Taj Mahal Hotel, he says. Excerpts.

Source:-http://www.dnaindia.com/money/interview_the-software-industry-is-going-to-be-ten-times-bigger-in-10-15-years_1486532

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Relatively high EPS growth detected in shares of ariba in the systems software industry (ARBA, ROVI, VMW, RHT, CVLT)

November 21st, 2010
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Below are the top 5 companies in the Systems Software industry ranked by the year-over-year expected EPS growth rate. The long-term growth rate is the expected annual increase in operating EPS over the next three to five years.

Ariba (ARBA) EPS is expected to grow 510% year-over-year, better than the company’s long-term growth rate of 16.2%. Based on the forward P/E of 23.8x its PEG ratio is 1.47, which signifies a premium valuation given for growth.

Rovi (ROVI) EPS is expected to grow 277.9% year-over-year, better than the company’s long-term growth rate of 17.8%. Based on the forward P/E of 26.1x its PEG ratio is 1.47, which signifies a premium valuation given for growth.

VMware (VMW) EPS is expected to grow 194.7% year-over-year, better than the company’s long-term growth rate of 23.3%. Based on the forward P/E of 54.5x its PEG ratio is 2.34, which signifies a premium valuation given for growth.

Red Hat (RHT) EPS is expected to grow 80% year-over-year, better than the company’s long-term growth rate of 17.6%. Based on the forward P/E of 54.5x its PEG ratio is 3.09, which signifies a premium valuation given for growth.

CommVault Systems (CVLT) EPS is expected to grow 72.5% year-over-year, better than the company’s long-term growth rate of 21.2%. Based on the forward P/E of 40.1x its PEG ratio is 1.89, which signifies a premium valuation given for growth.

SmarTrend currently has shares of Rovi in an Uptrend and issued the Uptrend alert on February 12, 2010 at $30.05. The stock has risen 79.1% since the Uptrend alert was issued.

Source:http://www.investors.com/NewsAndAnalysis/Newsfeed/Article/122488743/201011211057/Relatively-High-EPS-Growth-Detected-in-Shares-of-Ariba-in-the-Systems-Software-Industry-ARBA-ROVI-VMW-RHT-CVLT-.aspx

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Top 4 stocks in the application software industry with the Highest EPS estimates (SAP, OTEX, BMC, MSFT)

October 14th, 2010
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Below are the top application software stocks on the NYSE and NASDAQ in terms of earnings estimate for the next quarter.

The earnings estimate for SAP AG (NYSE: SAP) for the December quarter is $1.08 per share. SAP’s trailing-twelve month ROE is 24.60%.

Open Text Corporation (NASDAQ: OTEX [FREE Stock Trend Analysis]) is expected to earn $1.05 per share in the December quarter. OTEX’s PEG ratio is 0.82.

BMC Software Inc (NASDAQ: BMC) is likely to earn $0.79 per share in the December quarter. BMC’s trailing-twelve month ROE is 33.62%.

Microsoft Corporation (NASDAQ: MSFT) may earn $0.69 per share in the December quarter. MSFT’s quarterly earnings surged 48.40% y/y.

Source:http://www.benzinga.com/trading-ideas/long-ideas/10/10/523414/top-4-stocks-in-the-application-software-industry-with-the-hig

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New competition for the smartphone industry

September 29th, 2010
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The smartphone industry has gotten more competitive with the addition of numerous new companies and smartphone models. There are currently several companies leading the pack. These include Apple’s iPhone, HTC Droid Incredible and the Blackberry Curve 8530. Other telecom companies have also started joining in the competition, including mobile phone giants such as Sony Ericsson.

Source:-http://blog.wirelessground.com/category/sony-ericsson/

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India’s Software Industry Slams Ban by US State of Ohio

September 11th, 2010
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India has criticized a ban imposed by the U.S. state of Ohio on outsourcing of government projects to offshore locations. India feels this signals the rise of protectionist sentiment in the U.S.

The global recession had reduced the flow of outsourcing work from companies based in Western countries to Indian Information Technology (IT) companies. But in the past year, the industry has recovered from the slowdown and posted good profits.

Source:-http://www.voanews.com/english/news/asia/Indias-Software-Industry-Slams-Ban-by-the-state-of-Ohio-on-Outsourcing-Government-Projects-102618039.html

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Top 5 companies in the application software industry with the lowest beta (SLP, ULCM, BSQR, PRLS, VHC)

August 22nd, 2010
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Below are the top five companies in the Application Software industry as measured by beta. Lower-beta stocks mean minimal volatility and are therefore generally considered to be a less risk and offer more stable returns.

Simulations Plus ranks first with a beta of 0.4; Ulticom ranks second with a beta of 0.5; and Bsquare  ranks third with a beta of 0.6.

Peerless Systems  follows with a beta of 0.6 and VirnetX Holding  rounds out the top five with a beta of 0.6.

SmarTrend is bullish on shares of SLP and our subscribers were alerted to Buy on January 27, 2010 at $1.69. The stock has risen 43.8% since the alert was issued.

Source:http://www.mysmartrend.com/news-briefs/news-watch/top-5-companies-application-software-industry-lowest-beta-slp-ulcm-bsqr-prls-

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IT industry lashes out against US visa fee hike

August 11th, 2010
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The IT industry on Wednesday voiced its concern over the “discriminatory” nature of the proposed US Border Security Bill, which will lead to a hike in visa fees, costing Indian firms an additional $200-250 million annually.

This will make the Indian IT industry less competitive vis-a-vis others in the global market, says the National Association of Software and Services CompaniesThe association said the Bill is discriminatory and its impact on Indian firms could be as high as $200-250 million per year.

“This will have a negative impact on Indian companies which are investing in the US, employing US talent and are overall aiding the US economic recovery,” Nasscom VP Ameet Nivsarker said.

The Emergency Border Security Supplemental Appropriations Act was passed yesterday by a voice vote in the House of Representatives.

The Bill proposes to increase visa application fees by at least USD 2,000 for the next five years to raise nearly $550 million to help fund the $650 million plan for increasing security along the US-Mexico border. These fee increases will apply only to companies with more than 50 employees and for whom the majority of their workforce are visa-holding foreign workers.

Indian software firms, including IT biggies like TCS, Infosys, Wipro and others, avail H-1B and L-1 visas to fly their employees to the US for working at their clients’ locations as on-site engineers.

The $50 billion Indian IT export industry gets over fifty per cent of its revenue from the US market.

As per Nasscom’s estimates, Indian companies (mostly IT) apply for 50,000 visas every year, including H1B and L1 visas, besides renewal of old visas.

IT bellwether Infosys Technologies termed the US Border Security Bill unfortunate and discriminatory when the need is to open markets to make companies more competitive in the global market place.

“Infosys has been recruiting in the US at all levels. Today we have around 1,300 citizens and permanent residents working for Infosys in the US and have been actively working towards hiring over 1,000 additional people over the past few quarters,” the company said in a statement.

“We are working with various agencies of the government of India to take up this matter suitably with the US administration and we hope that the US would take necessary steps to enable a positive environment for international trade,” he added.

In a letter to US Trade Representative Ron Kirk, Commerce and Industry Minister Anand Sharma had said that the increase would cost Indian firms an extra $200 million a year and make them less competitive.

Source:-http://profit.ndtv.com/news/show/it-industry-lashes-out-against-us-visa-fee-hike-88496

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