On April 17, 2006, I posted Infosys (INFY) on Stock Picks Bob's Advice when the stock was trading at $84.78. INFY had a 2:1 stock split on July 18, 2006, making my effective 'pick price' actually $42.39. Infosys closed at $51.69 on October 12, 2007, giving my pick an effective gain of $9.30 or 21.9% since posting.
On October 11, 2007, Infosys (INFY) reported 2nd quarter 2008 earnings results. Revenues came in at $1.02 billion, up 37% from the prior quarter last year. Earnings per American Depositary Share (ADS) climbed 33% to $.48/share from $.36/share. Due to the strength in the rupee and the weakness in the dollar, management forecast margins being hit by 50 to 100 basis points. The company beat its own guidance , but the stock dipped on the reduced guidance going forward.
With the solid quarterly report, the strong price chart, and an intact Morningstar.com "5-Yr Restated" financials page,
INFOSYS (INFY) IS RATED A BUY
![]()
$50.44 (10/15/07)
