Wednesday, March 17, 2010

CALIFORNIA SOFTWARE COMPANY -KEEP AN EYE ON IT


Hope of revival in the financials of software companies are reviving with the revival in western economies. Investors  with enough patience can look into small IT companies with clean management. We can include Chennai based California Software Company (CALSOFT) in this category. Calsoft is a Product Engineering & Enterprise Solutions company started in 1992.Calsoft having more than four subsidiaries in India and abroad. Calsoft, which has development centers in Chennai, Bangalore and Mysore, and in California and Boston, besides marketing offices in the US, Europe, Singapore and India.
                                                                    Last year company divested the stake in one of its subsidiary Informed decision corporation (IDC) and now planning to deploy the money for new acquisitions.At present Hong Kong based Kemoil is holding about 66 % stake in this company . Kemoil Ltd is a wholly owned subsidiary and investment arm of Chemoil Energy Ltd. Chemoil Energy is listed on the Singapore Exchange with revenues of over $4.3 billion and a market capitalization of about $1 billion . Due to a change in the ownership of parent company  Singapore based SINGFUEL has now announced an open offer for acquiring 20% stake in CALSOFT at a price of Rs.45.03.SINGFUEL is an investment arm of Glencore International AG ,which is one of the world’s largest suppliers of commodities and raw materials to industrial consumers.
                                                             For the full year ended in March 2009  on a consolidated basis, Calsoft posted a sale of 258 crore and a net loss of 22 crore.For the nine month ended in December 2009 it posted better result than last year and with the help of its  new owners company is expected to perform well in future . At a price of Rs.41 it is a scrip to watch

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