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Thursday
Nov162006

EXLS, Exlservice Holdings Inc.

We've had great success in the IPO market market, following the likes of EDU, TWLL, MR, SNCR and trading the likes of RVBD,DIVX in the tech field from scratch.

We are throwing a new name out in Exlservice Holdings (EXLS) based on its report.  It is easy for a IPO to show growth in year over year comparisons, why else would they have gone to market unless they are showing very good growth rates the big boys will like.  EXLS has done this with 35 Mln vs. 18mln revenue growth, .19 vs .5 c EPS, but the thing the got our attention is the guidance for another excellent Q.  EXLS is projecting to do about 118 mln in revenue for 2006, this equates to something like 36mln next Q which is in line with this Q's after management said this one had benefits that would not continue.  There is an acquisition tossed in most likely this year, so what...thats a good thing.  Next Q the revenues ramps to this Q's, the benefits most likely excluded.....It's good enough to give this co' a second look, today or down the line.  Net income is projected to be 4-5mln next Q, this after a Q with the benefits in tow is quite respectable, putting the EPS in the mid teen to high teens again.  IPO's are difficult to cut and sometimes difficult to trade initially right after earnings, the reaction of the market is hard to gage as we saw with EDU. They spiked it down after what looked like a stellar Q, well we all saw the comeback and more to the $34's yesterday with it. There is just too many unknowns with the functions that come with the IPO, including potential profit taking after the run into earning which seems to be more common lately with IPO's than the usual suspects....so let the market tell you today..or down the line if this a good deal.  Some stocks you waste no time getting in as in a AAON, ATNI, which are just plainly under radar initially, others well knowns that get bid up with a gap aka DAKT are better to let settle on earning day before getting in.  

What does this co' do?..this DD is irrelevant and a waste of time at this point for us. It's got holdings in its name. Assuming they hold things is sufficient...okay, we actually looked..EXLS is a BPO.. whatever!. hey a Park Avenue address..that's more interesting;), they can pay their rent most likely.  Yeah, we do funky DD work around here..oh yeah, the chart is quite the funkster too...

We also looking at ZOLL, Zoll Medical Corp. as a possibility. RIMM gifted another price tgt lift, this time 160 from UBS...Markets a little happy premkt, day 5 here we come it seems..

Hey..the 'Big Hurt' is a Jay!?   ...WSeries here we come...NOT!

Alert follow up. One does not work without the other, so keep updated to DJ Journal activity.

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