Earlier this week, I stressed the benefits of companies that have a global viewpoint for my deep in-the-money calls strategy. Companies that produce significant foreign revenue are especially attractive right now, as they will allow me to strengthen the odds of success and improve my ability to make fundamentally sound choices, even in the midst of market uncertainty.
Overnight, the Asian and European markets felt the effects of the U.S. subprime mortgage woes and took a header. This only reinforces the need to trade in fundamentally sound companies. As I have said before, the cream always rises to the top. The relative strength of a company will show itself eventually, and when this happens, the stock will move back up, and DITM call holdings will close out for a win.
With today's pick, I am traveling to the Far East, as my selection has corporate headquarters in Bangalore, India, along with offices in North America, Europe and in the Asia Pacific region, providing a real global presence and solid international footprint.
provides information technology-enabled business services. One key component of the business model is outsourced IT solutions and systems integration.
Infosys prides itself as being the best in the business, and it boasts impressive partners, such as
Infosys' annual revenue of $3.36 billion and annual compounded growth rate of around 60% in the last five years indicate that providing consulting and IT services to clients globally has its perks. The company uses what it calls a low-risk global delivery model (GDM), and it is a technical pioneer in strategic offshore outsourcing of software services. The manner in which it conducts business was recently acknowledged by
A look at the financials shows a very solid stock and business. The
price-to-earnings ratio sits at 19.95, return on equity is 39.37%, and the company has no debt and $1.56 billion in cash. Infosys passes all the statistical guidelines we look for when making a DITM calls purchase. Therefore, I will place a limit order for 10 January 40s (IUNAH) at $6.60 or better.
The Game of Life
The world of baseball lost one of its most colorful characters with the passing of Phil Rizzuto on Monday night. The Scooter, as he was aptly nicknamed, played for the Yankees from 1941 to 1956. During his career, the Bronx Bombers won nine American League pennants and seven World Series championships.
A diminutive 5'6" and 150 pounds, Rizzuto was a sparkplug at shortstop who did all the little things right. He was a defensive specialist on a team with offensive stars such as Joe DiMaggio, Mickey Mantle, Yogi Berra, Tommy Henrich and Charlie Keller. Although his career statistics are relatively unimpressive, The Scooter won the American League's Most Valuable Player Award in 1950, when he hit a career best .324 and had 66 RBI, in a year culminated by a World Series victory over the Philadelphia Phillies "Whiz Kids."
After his playing days came to an end, Rizzuto found a second career in the broadcast booth at WPIX-TV, where he remained through 1996. Initially, he joined Mel Allen and Red Barber, two legendary figures in sportscasting annals. He became known for uttering the phrase "holy cow" when something dramatic happened in the game. In 1994, Rizzuto was voted into Baseball's Hall of Fame by the veterans' committee. The Scooter will be sorely missed by the millions he touched on the field, as well as in the booth.
Meanwhile, another scrapper, Atlanta Braves manager Bobby Cox, entered the record books on Tuesday night when he was ejected from a major league game for the 132nd time, eclipsing the record of Hall of Fame manager John McGraw. Nonetheless, Cox's Braves, buoyed by the recent addition of Mark Teixeira, remain entrenched in the three-team race with the Phillies and Mets for supremacy in the NL East.
The Brewers continue to hang on to a small lead over the Cubs in the NL Central, with the Cardinals just 3.5 games back. In the NL West, the Diamondbacks remain on top, with the Padres, Rockies and Dodgers all above .500 and in contention.
The Red Sox continue to maintain a five-game lead over the Yankees, in the AL East, while the Yankees still sit atop the wild-card race. The Tigers and Indians are tied for first in the AL Central, with the Twins still entertaining hopes of contending. In the AL West, the Angels have a small lead over the Mariners, who are tied with the Yankees for the top spot in the wild-card race.
In NBA news, referee Tim Donaghy pleaded guilty in Brooklyn Federal Court to two felony counts of conspiracy to engage in wire fraud and transmitting betting information through interstate commerce.
In NFL news, as the preseason kicks into high gear, all of the co-defendants in the Michael Vick federal dog-fighting conspiracy case, with the exception of Vick himself, have decided to plead guilty. This has led to speculation that the Falcons quarterback will negotiate a plea agreement with federal prosecutors by tomorrow, or face additional charges.
The Players Club appreciates that life is filled with disappointments and shattered dreams. Moreover, role models do not always live up to the role. All we can ask is that individuals do the best they can with what they have. To that end, by guaranteeing recurring cash flow through our strategic partner, The Players Club endeavors to provide athletes with a conduit to be the best they can be moving forward.
Always remember: Life is a journey. Enjoy the ride!
At the time of publication, Dykstra had no positions in stocks mentioned.
Nicknamed 'Nails' for his tough style of play, Lenny is a former Major League Baseball player for the 1986 World Champions, New York Mets and the 1993 National League Champions, Philadelphia Phillies. A three time All-Star as a ballplayer, Lenny now serves as president for several privately held businesses in Southern California. He is the founder of The Players Club; it has been his desire to give back to the sport that gave him early successes in life by teaching athletes how to invest and protect their incomes. He currently manages his own portfolio and writes an investment strategy column for TheStreet.com, and is featured regularly on CNBC and other cable news shows. Lenny was selected as OverTime Magazine's 2006-2007 "Entrepreneur of the Year."