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Technology Stocks : SYNTEL (SYNT) - Upcoming Year 2000 IPO
SYNT 40.990.0%Oct 10 5:00 PM EST

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To: Steve Rodio who wrote (2602)10/8/1999 11:35:00 AM
From: JDN  Read Replies (1) of 2761
 
Dear Steve: Well, my thoughts were this--All that cash that SYNT has had doesnt get us much market value in the stock. Yes, its nice to know we have a nice thick cushion to ride out any downtrends in business but what makes the stock go UP is rising revenues and earnings. Since IN TOTAL they only issued 300k shares and assuming that the acquired company has good earnings (and they must to accept such a large portion of the payout in Contingencys) I imagin that the combined REVENUES will increase dramatically as will the EBIT. That is what OUGHT to drive this stock price to very high levels ( I hope). Net earnings of course will be offset by goodwill but lately analysts seem to ignore those non cash writeoffs. JDN
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