Hi Mohan
Regarding your question on CBSI moving into ERP/Supply Chain Management arena, most of these Indian IT companies(MAST, CBSI,
SYNT) are already into it. ITIG(Intelligroup) is one more Indian IT
company which is mainly into ERP business because it is a higher profit margin segment of the IT consulting services. Till now,
CBSI, MAST, SYNT and IMRS had majority of their business in Y2K
sector, this is a good diversification.
Recently, most of the ERP companies like SAP, JDEC, ITWO, PSFT, BAANF
had their stock prices falling steeply, because analysts had predicted that Y2K crisis will eat into their earnings.
In short, it is a good move for these Indian IT companies to diversify into the ERP/Supply Chain Management arena as it gives them best of both the worlds (ERP and Y2K business).
I sold some CBSI to take quick profits. I still hold some CBSI. Hope CBSI does not get crunched like SYNT today after their earnings report.
MAST came out with a decent earnings today. I think CBSI should come out with a good earning too.
Best Regards
Ravi |
