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To: Paul A who wrote (5068)	1/10/2001 7:42:46 AM
From: Tom Hua	Respond to of 19633

Good morning Paul, INFY is a long term short. No matter how you slice it, this Indian IT consulting/outsourcing service company (job shop) is extremely overvalued. It has a market cap of $13 billion, I think it's worth $13 billion Indian rupees ($46 rupees = $1 USD) . Added to my short yesterday. Regards, Tom

To: Paul A who wrote (5068)	1/10/2001 8:31:38 AM
From: Tom Hua	Read Replies (2) \| Respond to of 19633

January 10, 2001 Dow Jones Newswires UBS Warburg Downgrades India Infosys To Hold From Buy Dow Jones Newswires BOMBAY -- UBS Warburg has downgraded software company Infosys Technologies Ltd.'s (INFY) stock to a hold from buy, following the company's results for the third quarter ended Dec. 31, UBS Warburg software analyst Sujit Saigal said. As reported, Infosys posted a 125.4% jump in third quarter net profit to 1.66 billion rupees ($1=INR46.6250) from INR737.9 million a year earlier. In the second quarter ended Sept. 30, the company had posted a 134.4% jump in net profit. Infosys's third quarter results have shown a sharper-than-expected drop in billing charges, revenue from dotcom and telecommunications startups, and employee utilization level. Growth rates in these sectors are expected to be sluggish, Saigal said. He said the growth in billing charges increased only 2.0% in the third quarter, compared with 18.0% the previous quarter. Revenue from dotcom and telecommunications start-ups dropped to 9.3% in the third quarter, from 12.2% in the second quarter. He didn't provide figures for the employee utilization rate. "In the next three to six months, (Infosys's) stock price should be rangebound," Saigal said, adding that the stock will again look attractive if it drops to between INR5,000 and INR5,500. In December, UBS Warburg had already downgraded Infosys to a buy from a strong buy on concerns over the lower growth in billing rates, and other factors like the employees utilization rate and drop in dotcom exposure, Saigal said. UBS Warburg, however, hasn't changed its forecast for Infosys's earnings, and is keeping its earning per share forecast for the current year at INR88.00, and that for the year ending March 31, 2002 at INR148.00. Saigal said although Infosys's third quarter results are financially sound, expectations of sluggish growth in billing rate, the dotcom and telecommunications sectors as well as employee utilization rate are worrying. This doesn't necessarily mean Infosys's earnings will be weaker than forecast as the loss in pricing and profit margin growth could be offset by higher volumes. But "we would not be comfortable (to continue) with a buy", Saigal said, adding that UBS Warburg will continue watching Infosys until new financial details are available over the next several months. He said the next rate change on Infosys would be in early March, before the company issues year-end results. On the Bombay Stock Exchange Wednesday, Infosys closed down INR257.60, or 4.4%, at INR5,665.00. -By Raghavendra Upadhyaya; Dow Jones Newswires; 91 22 2884211; raghavendra.upadhyay@dowjones.com