September 12, 2006

Public company woes

"Since this comes close on the heels of a modest four per cent growth in revenues and a six per cent rise in post-tax earnings clocked by Aztec in the fourth quarter, its second quarter will be watched closely. Clearly, project volumes that have slowed in the past two quarters will have to pick up in the coming quarters. With good client addition and a step up in sales efforts blended with Disha (its testing arm) in the first quarter, Aztec expects the benefits of higher volumes and better service to kick in, in the coming quarters." Things are not rosy everywhere, disapointing quarter for Aztech still they are trading at 15x their trailing 12months. A public company has so much more scrutinity and to some extent distractions. All analysts covering the company are scrutinizing everything/anything - reverse engineering it for the next quarter. From my standpoint though the more I know about who they deal with and how they position themselves, the better.

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