Gopinath Posted June 18, 2013 Share Posted June 18, 2013 This is a potential 5 bagger. Write up is attached. Infinite_Computer_Solutions.docx Link to comment Share on other sites More sharing options...
obtuse_investor Posted June 18, 2013 Share Posted June 18, 2013 Interesting analysis and valuation... why is the market valuing it at current levels? Where and what is the stressor? Link to comment Share on other sites More sharing options...
locatevalue Posted June 18, 2013 Share Posted June 18, 2013 Gopinath, Have you followed the money trail. Is the money really their? The reason i am asking is i have invested in some net-nets in BRICS and suddenly money vanishes. Sometimes majority owner buys some unknown asserts in unknown places and after few years comes back with empty bags or accuonts are fraudulant. This looks very intresting if the cash is their and they really accumulating fcf every qaurter as they mention not just future receipts of cash! Link to comment Share on other sites More sharing options...
kmukul Posted June 18, 2013 Share Posted June 18, 2013 Interestingly i had been buying a little and bought some today, its a small company for erics and prasads of the world :), As for the cash they are reporting they have cash but they have also raised their debt which doesnt make sense other then that i dont know of any other flag, I feel that its worth the risk esp with the buyback approved. Although with buyback also i have been burnt by companies announcing and approving it but not doing enough lets see how these guys execute on it. if they start the buyback it will be good as it shows they have cash and confidence that company is undervalued. Link to comment Share on other sites More sharing options...
rohitc99 Posted June 18, 2013 Share Posted June 18, 2013 IT midcaps in india are generally selling at a discount. there are however a few standouts like infinite which are even cheaper than the others. at the same time, there is always a risk that the numbers are not clean. look at the case of zylog systems ...selling at a mcap of 100 crs for a company with profits (stated ) of around 100 crs. recently it came to light that the promoters were misreporting their shareholding and have pledged 95% of their own holding already. infinite may not have the same problems, but the market does not trust a lot of these companies Link to comment Share on other sites More sharing options...
muscleman Posted June 18, 2013 Share Posted June 18, 2013 Do you know if it is a scam or not? :) Can you trust their numbers? Link to comment Share on other sites More sharing options...
siddharth18 Posted June 18, 2013 Share Posted June 18, 2013 Do you know if it is a scam or not? :) Can you trust their numbers? I'd like to know this as well. Link to comment Share on other sites More sharing options...
obtuse_investor Posted June 18, 2013 Share Posted June 18, 2013 Sounds like a scuttlebutt approach here would be the way to find out if this is a scam or not. If it isn't a scam, then current valuation is too good to be true. Infinite mentions a lot of fortune 500 clients--- I am sure some board members know someone who is associated to those large list of clients. Link to comment Share on other sites More sharing options...
Gopinath Posted June 18, 2013 Author Share Posted June 18, 2013 Hi All, I did check with the few of their clients. Especially the one business segment about their cloud based enterprise messaging systems. I know couple of guys who have used them. Regarding the pledge of shares, the founder(60%) haven't pledged any of them according to the latest filings. Regarding buybacks, They have bought back shares in the past. They have bought about 5% of the shares last year or so. Now, they have an approved buyback of 10%. Increasing debt is a concern for me, but in the annual report they have mentioned that they are doing it to invest in server businesses along with their clients. I spoke with few of their employees(Both current and ex), I get a mixed view about the middle management. I also checked in forums like glassdoors to get employees feedback, that is also a mixed bag and not outright negative. The complaints are being, too much pressure to perform at the very high level, no work life balance & HR being not attentive towards employees concerns. I also plan to talk to their 5% owner, T. Rowe International fund. Lets see where I can go from here. Gopinath. Link to comment Share on other sites More sharing options...
rohitc99 Posted June 18, 2013 Share Posted June 18, 2013 In a lot of these cases, the clients are real and so is the business. The problem is that the numbers are fudged sometimes and one cannot make that out from the annual reports till it is late ...deccan chronicle holdings , satyam comes to mind Link to comment Share on other sites More sharing options...
kmukul Posted June 19, 2013 Share Posted June 19, 2013 Thanks a lot Gopi, its very useful information and good to know that people here are following some indian companies too. Link to comment Share on other sites More sharing options...
kmukul Posted June 27, 2013 Share Posted June 27, 2013 Gopinathi ji, Your write up was very good, Is there any update on this? the price still looks very attractive. Link to comment Share on other sites More sharing options...
kmukul Posted July 17, 2013 Share Posted July 17, 2013 Hi Gopinath, Are you still tracking this? anything more to share? Would be very happy to read if you have anything... thanks a lot Link to comment Share on other sites More sharing options...
TwoCitiesCapital Posted July 17, 2013 Share Posted July 17, 2013 In a lot of these cases, the clients are real and so is the business. The problem is that the numbers are fudged sometimes and one cannot make that out from the annual reports till it is late ...deccan chronicle holdings , satyam comes to mind Exactly. I got burned 2 years back by a Chinese reverse merger called Shengkai Innovations. Called their largest customers in the Middle East and America and spoke with people who toured the factory. They all loved the product, said that it sold for as much as 2.5x the competition's, and were investors themselves. That didn't mean that the earnings, revenues, and cash in the bank were real and the stock is down some 95% from its highs. Link to comment Share on other sites More sharing options...
kmukul Posted January 6, 2014 Share Posted January 6, 2014 The stock is up significantly from its lows, here is a recent interview of the ceo Link to comment Share on other sites More sharing options...
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