datamatics

#1
datamatics technologies is an excellent company , but it is underperforming the market. in fact while the market has risen substantially for almost the whole of 2005 , but datamatics has gone down even below issue price.

the results for the first 2 quarters have been below expectation . this may be due to the absorption of the costs of the taken over companies in the U.S.
the results show a significant increase in employee costs.

at the same time the company plans to increase its employees and knowledge associates . this reflects the confidence of the company in its future growth prospects.

i hope that with the increase in the dollar exchange rate , the results of the 3rd quarter will be better and will be able to keep pace with the rise in employee costs. otherwise i have confirmed even from an employee who has worked in datamatics , it IS a good company.

the price /book value ratio is only 2 which is very very good for a profit making / dividend paying company in the IT sector , which normally do not have much capital assets with them .
 
#2
future prospects of datamatics have been confirmed by a research report which has rated datamatics as an emerging star among the top 100 non-voice BPO companies in the world .
i hope that its fourth quarter results will continue the rising trends in revenue and profits that it has shown during the first 3 quarters of 2005-06.
 
#3
its a long time since i posted about datamatics . actually i am holding this stock from a long time . now it is at its all time low of rs.62/- . i once again checked recently with my broker about the future prospects of this datamatics. he categorically told me to hold it for some more time , since it may suddenly take an upward thrust after this quarter results . it is a good company , profit making and regularly paying dividends .
i am posting this to keep up the faith of many others who have invested in this scrip . my faith is in my broker and it is out of experience with his sincerity of advice .
the volume of shares has recently gone up . delivery percentage is also generally more than 60%
 
#4
Why would you continue holding a company which has declined over the last one year from around 100 to 62? Sell now and buy once the Technicals show a trend reversal ... at least you will recoup some losses that way.
 
#5
thanks for your response .yes i know it seems odd to keep waiting with a falling stock in a rising market . your view is correct in that light .

actually i do not know much about market movements. however i do know somewhat about people .... at least people with whom i have been associated for more than 10 years. so i have learnt to develop faith , and that is my style of investment.
i know my broker will not be 100% right all the time . probably this was one time when he was not so accurate in his judgement , for the short term . but this one exception has not made me question his judgement . he still maintains a buy on datamatics ... so i am holding this scrip.

i hope his judgement comes true. i have experienced this on more than one occasion.... it does work out in the positive, even if i have had to wait for a period longer than i had expected.
 
#6
its been a long time since i have posted on this scrip . datamatics has really been hammered during the recent meltdown in the market . at one point i felt that a profit making company which is paying 50% dividend during the year , how can it go so low , upto Rs.54/- ? But now it has gone into the 40 's .
now i don't know what to expect and how long to hold on .
the only consolation is that this will be a good year for IT companies , and with the results so bad for 2005-06 , there is only room for improvement in the coming year for datamatics .
 
#7
Hi sculptor!
First decide whether you are a trader or investor.If you are a investor (which seems true) with datamatics and if you are convinced and if you understand that this scrip has value and one day this value will unlock,then DO NOT SEE THE "price" daily.Wait till the value gets unlock.Market will always try your patience and conviction.This trying times differentiate "men" from "boys".
Another point my friend.NEVER RELY your broker.You may listen to broker's reccommendations but convince yourself with good reason before buying a stock.
Best of luck.
God Bless You.
Disciple.
 
#8
datamatics has finally started moving . i'm very happy that i did not give up my patience and sold at a huge loss . now with volumes picking up i think that finally it has come to the notice of some strong operaters . i am also hopefull that after a year and a half , it will finally come out with improved quarterly results .
 

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