Stocks That Almost Made the Cut: June 2006

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June 1, 2006 | S.T.A.M.T.C | | Author Asif

The drop in the domestic and international markets in May made some stocks I had been following attractive on a valuation basis. Infosys (INFY) was one of these stocks and while building the table that compared the large Indian IT firms, I found Satyam Computer Services (SAY) intriguing thanks to its annual earnings growth rate of 62.20%. Digging a little deeper, I found out that this earnings growth was inflated on account of Satyam’s sale of its 31.61% stake in Sify (SIFY) to a silicon valley based investment partnership called Infinity Capital Ventures. Satyam also mulled a stock split and then did not make an announcement confirming a split when it released its quarterly and full year results. Since the focus of this month’s SINLetter was stock splits, I decided against Satyam and picked Infosys instead.

I also considered Network Engines (NENG), Intel (INTC) and Orasure Technologies (OSUR) for this month’s SINLetter. OraSure Technologies is a company that makes easy to use oral HIV diagnostic test kits and it was featured in a recent article in Fortune magazine. OraSure received a large order from the Centers for Disease Control and Prevention (CDC) in May and the company is attempting to get FDA approval that will allow consumers to use its test kits at home. I figured it was best to follow OraSure for now and see if it indeed receives the FDA approval. I decided to feature Logitech (LOGI) instead for all the reasons discussed in the June SINLetter and because it fit in well with our theme of stock splits and international investing.




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