Friday, September 14, 2007

Barron's Agrees - Time to Buy

This last weekend (9/10/2007) Barron's had an article on Indian outsourcing and key players in that space. The article expounded what I stated a few weeks ago that the Indian outsourcing companies are trading at a significant discount today. When you review their PE and PEG compared to their growth and profit margins - it's easy to see the discount in their price.

Infosys and Satyam were cited by Goldman Sachs as top picks. Indian outsourcers have robust growth, great margins and are diversifying in Japan, Europe and even India. The current market aversion to emerging market stocks is making these outsourcing stocks look very attractive. Not sure if we have found the bottom as yet – but if you are a long term investor buying on the dips may not be a bad idea.

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