Beware This Tech-Tonic Shift In The Global Technology Sector

by Tony Daltorio, Investment U Research

If you’re betting on a recovery in technology stocks based on third quarter earnings reports from companies such as IBM (NYSE: IBM) and Google (Nasdaq: GOOG), you’re not alone.

While economists and commentators debate the issue, many investors have already placed large bets on a V-shaped recovery for the tech sector.

They have some good reason to think so too, since the tech-heavy Nasdaq composite has risen 70% from its March lows. The problem is, they’re expecting “business as usual” in the industry… meaning they think spending will pick up the way it did in the 1990s.

Kris Gopalakrishman, CEO of Indian tech giant, Infosys (Nasdaq: INFY) – a company in the Xcelerated Profits Report portfolio – sees it differently,

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With the United States market still in slump, businesses project difficulties in profit increase in the next 7 years. Job cuts continue in the US and the rate of job creation of 25 per year is not sufficient to offset job losses in the next 5 years. On the other side of the world, Indian outsourcing firms show an opposite trend. Global IT service providers such as Infosys which provides technical consulting, design and development of business solutions have been aggressively increasing their workforce. Last week, the company reported that in the second quarter it has hired 6,069 people offsetting the 4,521 employees it laid off in the same quarter. Tata Consultancy Service is also bullishly hiring with plans of hiring 25,000 people worldwide for this year 2009 and 90%

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Investing in Emerging Markets: Three Reasons Why You Should Buy India, Not China

by Karim Rahemtulla, Advisory Panelist

India has come a long way since 1997.

The year marked my first trip to the country – and I remember it well, as I headed back to America with a resounding “sell” ringing in my ears with regard to India’s investments.

At that time, the market was clearly manipulated by several large traders. One in particular was Hershad Metha, referred to as the “Big Bull.” And bull is exactly what he fed to the masses, as he borrowed money from the government-owned banks and plowed the cash into the stock market. Result? The mother of all (fake) bull markets, created by a man with a choice word missing from the end of his nickname!

Knowing this, and the precarious position of investing in emerging markets

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For Immediate Release

Chicago, IL - June 24, 2009 - Zacks Equity Research highlights El Paso Corp. (EP) as the Bull of the Day and Cadence Design Systems (CDNS) the Bear of the Day. In addition, Zacks Equity Research provides analysis on ICICI Bank (IBN), Infosys (INFY) and Wipro (WIT).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day:

We are maintaining our Buy recommendation on El Paso Corp. (EP) but are lowering our target price from $13.00 to $12.00 per share. The stock is up roughly 60% since March as worries of liquidity and execution risk on its backlog of pipeline projects has been alleviated due to the normalization of capital markets and indications of a stabilizing U.S.

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Stocks of companies in the IT Services/BPO Sector have performed impressively along with the broader market averages during the current June quarter after being beaten down since the housing-market-driven overall market collapse in September of 2008. The Business Process Outsourcing (BPO) companies were all under significant pressure even before the economic malaise with a slowdown in its growth trajectory.

In other words, the BPO companies were all trading with an early 2009 growth/recovery story in mind. However that thesis has seen some re-evaluation, given that overall recovery prospects have been pushed towards the latter half of 2009 or early-2010.

Shares of nearly all of the companies in the group got a boost immediately following the election results in India on May 17th. Shares of Patni Computers (

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Stocks of companies in the IT Services/BPO Sector have performed impressively along with the broader market averages during the current June quarter after being beaten down since the housing-market-driven overall market collapse in September of 2008. The Business Process Outsourcing (BPO) companies were all under significant pressure even before the economic malaise with a slowdown in its growth trajectory.

In other words, the BPO companies were all trading with an early 2009 growth/recovery story in mind. However that thesis has seen some re-evaluation, given that overall recovery prospects have been pushed towards the latter half of 2009 or early-2010.

Shares of nearly all of the companies in the group got a boost immediately following the election results in India on May 17th. Shares of Patni Computers (

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For Immediate Release

Chicago, IL - June 16, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Infosys (INFY), Wipro (WIT), ICICI (IBN), HDFC (HDB) and Tata Motors (TTM).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Monday's Analyst Blog:

Indian Market Still Attractive

The Indian Stock Market has gone up sharply in the recent weeks based on high expectations from the re-elected United Progressive Alliance government, (this time with a record mandate), which promised to bring about high economic growth by opening up foreign investment and boosting infrastructure spending.

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The UpTurn Inc. is developing an innovative online real estate matchmaking exchange where residential real estate market participants are matched with each other based on their individual profiles and intended roles in the market. The UpTurn intends to serve all participants in the residential real estate industry.

The company is led by a very strong management team with a broad range of experience. The UpTurn’s management team includes:

Jeffrey M. Eckman, CEO – Mr. Eckman founded Blue Green Ventures in 2008 and has over 15 years of leadership experience in the technology, media, and healthcare industries. His background includes a mix of operational, business development, and consulting practice from his work with various firms.

Mr. Eckman holds an MBA from the MIT Sloan School of Management. Prior to starting Blue Green Ventures, he worked for several Fortune 500 companies including Viacom and Wyeth, as well

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The Indian Stock Market has gone up sharply in the recent weeks based on high expectations from the re-elected United Progressive Alliance government, (this time with a record mandate), which promised to bring about high economic growth by opening up foreign investment and boosting infrastructure spending.The Bombay Sensex is now at around 15000, almost double from the bottom hit in November 2008. The rally has been broad-based, with shares of Indian ADRs of software companies like Infosys (INFY) and Wipro (WIT), banks like ICICI (IBN) and HDFC (HDB) and automobile companies like Tata Motors (TTM) up sharply.Foreign institutional investors (FIIs) have invested more than $5 billion (over Rs 25,000 crore) in Indian stock markets so far this calendar year, with as much as $3.2 billion coming since the UPA government came to power last month, which is one of the ...

Reading the Indian mainstream news yesterday about India Inc.’s strategy to expand operations in Eastern Europe and hire multilinguals to serve the European finance and accounting sector does not surprise me anymore. In my April article, I talked about how Europe is becoming more comfortable with outsourcing not just to its neighboring countries but also to Asia particularly to the Philippines. The following month, I wrote an article on Philippine Outsourcing re-focusing its efforts to the European market instead in anticipation of US political and trade condition changes.

It is not a question anymore if there is outsourcing need in Europe the more important question to ask is how to monetize this growing demand. There are several ways of doing it.  Outsourcing companies can hire multilingual locals or they can set up operations in Eastern Europe where there are more European-languages

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