tag:blogger.com,1999:blog-1912024874154155188.post7946445383753073366..comments2022-11-14T13:24:50.340+05:30Comments on Investor Souk: Our Research for your USE: GSS America Infotech Ltd - IPOUnknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1912024874154155188.post-22154505052217635932008-02-23T22:40:05.000+05:302008-02-23T22:40:05.000+05:30The company is working in an industry that will sh...The company is working in an industry that will show tepid growth in the future. The EAi market is slowly eviscerating because of technical evolution. name brand players like Webmethods, Seebeyond, Bea are all being absorbed by larger players because the technology itself has little value for Fortune 500 companies. GSS has 400 consultants onsite and none of you have checked how many of them are directly on projects with the clients listed. They have indirect relationships. They did not list many large multi year contracts in their documents because they really do not have that many. Essentially the company is a roll up acquiring companies and that strategy becomes a bust if the market will go south, as it is expected to in 2008. In the recession of 1990 the services market went bust and took some years to recover i.e Y2K started the boom. There is no technical breakthrough compelling companies to spend on technology similar to Y2k, so the tech spend will be limited and a blood bath will ensue. It will be difficult for all companies to stay competitive without sacrificing margins. Companies such as GSS and others are living in the glory years of the past and have limited upside in the futurerh mayonoreply@blogger.com