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Technology Stocks : SYNTEL (SYNT) - Upcoming Year 2000 IPO -- Ignore unavailable to you. Want to Upgrade?

To: airborn who wrote (2310)	12/17/1998 2:57:00 PM
From: Ben	Read Replies (1) \| Respond to of 2761

Following is the reply I received from Syntel for the email I sent to their investor relations asking why the stock is dipping. I hope this reply explains it all. This stock will be a winner in the long term. Bijoy Nair ---------------------- In regards to your question about the recent volatility of Syntel stock: this is not a reflection of any news Syntel has released. In fact, we have released only good news (the completion of Allied Van Lines Year 2000 compliance project and our contract win of Umbro in the UK are the most recent releases we've issued). Syntel has a solid foundation in place and that our fundamentals remain strong. We continue to focus on our higher-margin, higher-revenue generating IntelliSourcing business, and are in the process of doubling our sales force in this area. In addition, we've made a conscious decision to move away from non-recurring Y2K business. Our objective is to limit Y2K revenue to 18% in 1998, and we see that percentage decreasing in 1999. We are being proactive in addressing this issue now rather than next year as several other IT services companies seem to be doing. Analysts appear to be concerned with the short-term impact of this move, but we are confident this is the best approach to grow our business long-term. We have not yet set a date for earnings release. As soon as we set a date it will be listed on our web site under the “What's New” section. I hope I've helped to answered some of your questions. Thank you for your interest in Syntel. Julie Pitser

To: airborn who wrote (2310)	12/17/1998 4:06:00 PM
From: JDN	Read Replies (2) \| Respond to of 2761

dear Airborn: The reply to your question is the answer. To be more SPECIFIC. The analysts covering SYNT have some kind of hangup on Y2K. Somehow they think that if SYNT LIMITS their exposure to y2k work next year that profits will NOT grow. I think that is kind of nuts, as from the VERY BEGINNING SYNT stated that they would not allow y2k business to exceed 20% of revenue as it takes away from their development of continuing business. This year they will do about 18% and have stated it may be less in 1999. SO, the analyst refuses to raise 1999 earnings projections which now are approximately the same as what 1998 ACTUAL will be. The huge growth in revenue AND EARNINGS was not entirely due to Y2K as Y2K was only 18% to begin with. My impression of this Management is that they are not going to let employees sit around a twiddle their thumbs just to NOT DO y2k. They obviously think they will be busy on other business. But if they were not to be busy I am sure Management would rethink its Y2K philosophy. Now here is why its NUTS. IMRS a similar company only HEAVILY into Y2K has publicly announced they are doing all they can to get OUT of Y2K business and into continuing business. This means IMRS has to pretty much start from ground zero as in their case the MAJORITY of their work was Y2K. So IN THEIR CASE the analyst RAISES their earnings outlook. Something doesnt ring true here. I think this is one hell of an opportunity when SYNT will blast through the analysts estimates for 1999. JDN