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 .
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 .