Stocks & Investing
Stocks and InvestingStocks and Investing 
Wed, August 24, 2011
SYNT, LIOX, TIER, SGMS, MANT, CBR, Computer Services Stocks Undervalued
August 24, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Computer Services sector and these stocks are the most undervalued as of today. SYNTEL INC (NASDAQ:SYNT), LIONBRIDGE TECHNOLOGIES, INC. (NASDAQ:LIOX), TIER TECHNOLOGIES INC (NASDAQ:TIER), SCIENTIFIC GAMES CORP-A (NASDAQ:SGMS), MANTECH INTERNATIONAL CORP-A (NASDAQ:MANT), CIBER INC (NYSE:CBR) are all expected to go Up as they are Undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.
The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:
Symbol Company Name Last Close Fair Value Valuation Industry
SYNT SYNTEL INC 45.3 61.62 26.50% Undervalued Computer Services
LIOX LIONBRIDGE TECHNOLOGIES, INC. 2.72 4.32 37.00% Undervalued Computer Services
TIER TIER TECHNOLOGIES INC 3.58 3.62 1.10% Undervalued Computer Services
SGMS SCIENTIFIC GAMES CORP-A 8.025 17.46 54.00% Undervalued Computer Services
MANT MANTECH INTERNATIONAL CORP-A 35.78 48.97 26.90% Undervalued Computer Services
CBR CIBER INC 3.11 6.91 55.00% Undervalued Computer Services
Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.
Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.
SYNTEL INC (NASDAQ:SYNT) - Syntel, Inc. provides information technology (IT) and knowledge process outsourcing (KPO) services worldwide. It operates in four segments: Applications Outsourcing, KPO, e-Business, and TeamSourcing. The Applications Outsourcing segment provides software applications development; maintenance, testing, and migration services; and infrastructure services. The KPO segment offers a host of outsourced solutions for knowledge and business processes. Its solutions enhance back-office services, such as transaction processing, loan servicing, retirement processing, and collections and payment processing. The e-Business segment provides technology services in the areas of architecture strategy, Web solutions, data warehousing/business intelligence, enterprise applications integration, and enterprise resource planning, and software package implementation. The TeamSourcing segment offers professional IT consulting services, including IT applications systems specification, design, development, implementation, and maintenance involving various computer hardware, software, data and networking technologies, and practices. The company primarily serves financial services, healthcare, insurance, automotive, and retail industries. Syntel, Inc. was founded in 1980 and is headquartered in Troy, Michigan.
LIONBRIDGE TECHNOLOGIES, INC. (NASDAQ:LIOX) - Lionbridge Technologies, Inc. provides language, development, and testing services. Its Global Language and Content segment provides product localization services, such as creating foreign language versions of its clients products and software applications, including the user interface, online help systems, and documentation; and content translation services, such as translating and maintaining clients Web-based content, eLearning courseware and training materials, technical support, and sales and marketing information. It also offers content development solutions, including technical authoring, eLearning courseware development, and production and integration of content within a technology platform; and global language and content services delivery. The companys Global Development and Testing segment provides application development and maintenance solutions comprising custom software development, application maintenance, and code modernization. This segment also offers testing and certification services under the VeriTest brand name. Its services include performance testing, quality assurance, usability testing, globalization testing, certification, and competitive analysis. In addition, it provides multilingual search relevance and optimization services. Its Interpretation segment offers interpretation services for government business and healthcare organizations that require experienced linguists to facilitate communication. It provides interpretation communication services, such as onsite interpretation, over-the-phone interpretation and interpreter testing, training, and assessment services in approximately 360 languages and dialects. The company serves the technology, mobile and electronics, life sciences, consumer, publishing, manufacturing, automotive, and government industries in North America, Latin America, Europe, and Asia. Lionbridge Technologies, Inc. was founded in 1996 and is headquartered in Waltham, Massachusetts.
TIER TECHNOLOGIES INC (NASDAQ:TIER) - Tier Technologies, Inc. provides biller direct electronic payment solutions to federal, state, and local government, as well as to educational institutions, utility companies, and other public sector clients in the United States. The companys solutions include multiple payment options, including consolidation of income payments, bill presentment, convenience payments, installment payments, and flexible payment scheduling. Its solutions also offer its clients a range of online payment options, including credit and debit cards, electronic checks, cash and money orders, and alternative payment types. In addition, Tier Technologies solutions provide processing for Web, call center, and point-of-sale environments. Further, it offers a front-end platform designed for the biller direct market with a single source solution that simplifies the management of electronic payments. The companys client base includes the U.S. Internal Revenue Service, 27 states, the District of Columbia, and approximately 3,800 local governments and other public sector clients. Tier Technologies was founded in 1991 and is headquartered in Reston, Virginia.
SCIENTIFIC GAMES CORP-A (NASDAQ:SGMS) - Scientific Games Corporation supplies technology-based products, systems, and services to gaming markets worldwide. The company operates in three segments: Printed Products Group, Lottery Systems Group, and Diversified Gaming Group. The Printed Products Group provides instant lottery tickets and related services, including ticket design and manufacturing, as well as value-added services, such as game design, sales and marketing support, specialty games and promotions, inventory management, and warehousing and fulfillment services. It also offers paper-based prepaid phone cards. The Lottery Systems Group provides customized computer software, equipment, and data communication services to government-sponsored and privately operated lotteries. Its products and services comprise transaction processing software for the accounting and validation of instant and online lottery games, point-of-sale terminals, central site computers, communications technology, and ongoing support and maintenance for these products. This group also offers software, hardware, and support for sports betting systems, video lottery systems, and the operation of credit card processing systems for non-lottery customers. The Diversified Gaming Group provides services and systems to private and public operators in the wide area gaming and pari-mutuel wagering industries. This group offers gaming machines, central monitoring systems, and game content to licensed bookmakers; video lottery terminals; gaming terminals and content; computerized systems for pari-mutuel wagering; and sports betting systems and services, as well as engages in venue management gaming operations. Scientific Games Corporation has a strategic agreement with Playtech Limited to develop and market Internet and land-based gaming products and services to regulated gaming operators. The company was founded in 1984 and is based in New York, New York.
MANTECH INTERNATIONAL CORP-A (NASDAQ:MANT) - ManTech International Corporation provides technologies and solutions for national security programs in the United States and internationally. The companys mission support solutions include cyber security, secure information sharing and collaboration, mission enabling solutions, enterprise systems engineering, service oriented architectures, intelligence operations and analysis support, and secrecy management and program security architecture. It also offers systems engineering services; modeling and simulation, testing, and evaluation; and independent validation and verification services. In addition, the company provides technical services, such as communication systems and infrastructure support, global and domestic mission-critical logistics support, global property management, and global information technology modernization. ManTech International Corporation offers its products and services to U.S. federal government intelligence, military and civilian agencies, state and local governments, and commercial customers. The company was founded in 1968 and is headquartered in Fairfax, Virginia.
CIBER INC (NYSE:CBR) - CIBER, Inc. operates as a system integration and information technology (IT) services consulting company in the United States and internationally. It provides a range of application portfolio management support, including analysis, design, development, testing, implementation, and maintenance of business applications; and offers portal development and content delivery services, and portal development services. The company also offers service-oriented architectures, including J2EE and .NET, as well as traditional client/server and mainframe development; and consulting services, which include IT strategy, architecture, business intelligence/data warehousing, collaborative solutions, and supply chain. In addition, it provides a mix of enterprise and custom solutions; a range of services covering the IT solution lifecycle; and enterprise resource planning and customer relationship management software products. Further, the company develops Web services applications, implements workflow solutions, resells SAP software, integrates legacy systems, and builds information infrastructures. Additionally, it offers solutions, such as help desk, hosting, software rollout, security monitoring, server virtualization, strategic staffing, security assessments, legacy modernization services, enterprise architecture development, financial management, engineering and system integration solutions, and enterprise level security and risk management programs. CIBER, Inc. also provides budgeting, financial processing and analysis, human capital management, sales order processing, manufacturing systems solutions, enterprise servers, storage, middleware, integration services, assessments, and related products; and resells hardware products. It serves various markets, including government, manufacturing/high tech, financial, healthcare/pharmaceutical, retail, automotive, telecommunications, and other services. The company was founded in 1974 and is based in Greenwood Village, Colorado.
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