Infosys and competitor Wipro Ltd. (NYSE: WIT) are two of India’s largest business outsources. The two companies compete with IBM Corp. (NYSE: IBM), Computer Sciences Corp. (NYSE: CSC), Cognizant Technology Solutions Corp. (NASDAQ: CTSH), and Accenture plc (NYSE: ACN).

Business and government spending in the US and elsewhere is expected to grow as companies invest in new equipment and outsourcing for their IT needs. Even Europe is expected to grow if very slowly.

Those estimates, though, may seem to fly in the face of reality. But Infosys, Wipro, Cognizant, and India’s largest outsourcer, privately-held Tata Consultancy Services, could reduce a company’s IT costs significantly by replacing highly paid fired workers with lower paid, outsourced workers.

Goldman Sachs Group Inc. (NYSE: GS), an Infosys client, plans to fire more than thousand employees to meet its cost reduction goals of $1.45 billion. That’s bad news for the terminated employees, but might offer some good news for Infosys — and Goldman for that matter.

Of course, the big question for the India-based outsourcers is how much of growth they can expect to see between now and the end of the year. Infosys got 6.2% quarterly growth in the Americas during the quarter and expects growth to continue. The other issue they face is whether or not they can control costs. Infosys expects wages to eat away about 1% of the company’s operating margin this year.

Growth that depends on a depreciating currency in a weak economic climate is tenuous at best. There are a lot of things that can go wrong and put a serious crimp in growth forecasts.

But all is well today. Just past noon today, Infosys shares are up more than 8%, at $56.88, in a 52-week range of $46.12-$77.92. Wipro shares are up about 3.5%, at $9.77, in a 52-week range of $8.63-$16.81. Cognizant shares are up nearly 6.5%, at $71.82, in a 52-week range of $53.54-$83.48.

Paul Ausick

Accenture plc (NYSE: ACN) Reiterated Buy and Raised target at Argus.
Cato Corporation (NYSE: CATO) Reiterated Strong Buy as Value at Zacks.
Five Star Quality Care Inc. (NYSE: FVE) Started as Buy at Jefferies.
Fortress Investment Group (NYSE: FIG) Started as Outperform with $7 target at Credit Suisse.
Hudson City Bancorp, Inc. (NASDAQ: HCBK) Raised to Market Perform at FBR.
MetLife Inc. (NYSE: MET) Reiterated Buy at Argus.
Sears Holding Corp. (NASDAQ: SHLD) Maintained Underperform as Bear of the Day at Zacks.
Sina Corporation (NASDAQ: SINA) Raised to Neutral at Goldman Sachs.
Spreadtrum Communications Inc. (NASDAQ: SPRD) Reiterated Buy at BofA/ML.
Telesp S.A. (NYSE: VIV) Raised to Outperform as Bull of the Day at Zacks.
Tim Hortons Inc. (NYSE: THI) Started as Buy at BofA/ML.

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JON C. OGG

This may sound like something that only the most active or experienced traders should care about.  That is only partly true.  Retail investors now run stock screens with regularity when they look for value stocks and overvalued stocks alike.  When they see that a utility or a consumer products company has doubled or more from its yearly low, they automatically throw these names out.  The only reason for that low is because of the Flash Crash and the lows should have never been there in the first place.  After Friday, these ranges will look normalized.

Accenture plc (NYSE: ACN) has an official 52-week trading range of $17.74 to $58.21, but the reality is that this is closer to $36 to $58.21.  During the Flash Crash panic this one traded some 10 million shares at 3-times normal volume and somehow went all the way down to an official exchange price of $17.74 and then the stock closed back up at $41.09.  This was one of the companies which reportedly went to $0.01.

Apple Inc. (NASDAQ: AAPL) is one which will soon stop being mis-quoted for its highs and lows of the last 52-weeks after this Friday.  On May 6, 2010, its shares went from a high of $258.25 down to a NASDAQ official low of $199.25 but they closed back up at $246.25 that day.  I even know of one trader who made literally $20.00 per share that day and those trades were close enough to the market that the NASDAQ did not break those trades.  Apple’s ‘real’ 52-week trading range should really be closer to $235.00 to $364.90.

CenterPoint Energy, Inc. (NYSE: CNP) has an official 52-week range of $5.67 to $18.83, but this really should have been about $12.75 to $58.21 without the Flash Crash.  We have this as one of the stocks that went to a penny.  This one traded 9.3 million shares, more than twice its average volume and shares closed at $13.88 on that day.

Exelon Corp. (NYSE: EXC) is another one of the companies which reportedly went to $0.01 during the Flash Crash.  The 52-week trading range is currently listed as $16.78 to $44.49, and that Flash Crash trading on the NYSE records now shows that shares went from a high of $43.35 down to $16.78 before closing all the way back up at $39.82.  Excelon’s ‘real’ 52-week range should be closer to $37.50 to $44.49.

Procter & Gamble (NYSE: PG) has an official 52-week range of $39.37 to $66.95, but the reality is that this is closer to $59.00 to $66.95 with the exception of the Flash Crash.  When this crashed that day it was on more than twice normal trading volume of 28 million shares and shares closed at a price then of $60.75 that day.  If you recall, Jim Cramer touted this during the peak of selling saying that is an error or a gift, and he was right.  Arguably, at the time you could have removed Greece, Ireland, and Portugal off the face of the world and P&G shares might not have ever fallen to that low of a price.

Again, these are just some of the stocks which experienced significant drops.  There were many others that took share price hits, but some of those Flash Crash lows were actually taken out for real during the peak of the summer selling last year.

If you want to know what real nitpicking is, that is this view here… Thursday, May 5 should be the one year anniversary of the 2010 Flash Crash.  It is due to the one day per year addition on the calendar.  While the May 6 date this year is on a Friday, it was on a Thursday last year and it was also a day before key economic data.  Regardless of how you look at ‘anniversaries,’ come Monday the 52-week trading ranges will have normalized in these five and many other stocks.

JON C. OGG

Nokia has decided to bet on the Microsoft (NASDAQ: MSFT) Windows Mobile operating system as its path to increased market share which it will have to gain from Apple (NASDAQ: AAPL), Research In Motion (NASDAQ: RIMM), and an army of Google (NASDAQ: GOOG) Android powered smartphones. The plan is a long shot according to almost every industry expert. Windows Mobile has very little market presence. The fact that Nokia is still the leader in handset sales worldwide does not mean it has leverage to move up-market. It may rue the day that it parted with it Symbian development operations. The aged operating system might have served Nokia well if it was aggressively updated.

Elop’s layoff plans are similar to what most CEOs of troubled companies do. They reject the past by cutting the staff that made the past possible.  Elop says he needs a year to launch a line of competitive phones. A year is like a century in the smartphone business.

Elop had other options, most of which were better than the one he has picked. He might have engineered a merger with RIM. He might have sought a joint venture or merger with Motorola or Sony Ericsson. These two companies at least have a modest presence in the smartphone business. Nokia’s manufacturing scale and global relationships with cellular service providers would have helped a new venture. Nokia elected to go with a long odds strategy instead.

Elop’s plans have cost 4,000 people their jobs. And, he has probably already made a decision that will doom Nokia’s future place in the smartphone industry.

Douglas A. McIntyre

Accenture plc (NYSE: ACN) Reiterated Outperform at Credit Suisse.
Central European Media Enterprises (NASDAQ: CETV) Started at Hold at Jefferies.
Cisco Systems, Inc. (NASDAQ: CSCO) Started as Neutral at Gleacher & Co.
Citigroup Inc. (NYSE: C) Raised to Outperform at Bernstein.
Dell Inc. (NASDAQ: DELL) Started as Neutral at Cowen.
Discover Financial Services (NYSE: DFS) named as Bull of the Day at Zacks.
J.P. Morgan Chase & Co. (NYSE: JPM) Started as Outperform at Macquarie.
Las Vegas Sands Corp. (NYSE: LVS) Reiterated Outperform at Credit Suisse.
Marriott International Inc. (NYSE: MAR) Cut to Hold at Argus.
Niska Gas Storage Partners LLC (NYSE: NKA) Cut to Neutral at Credit Suisse.
Occidental Petroleum Corporation (NYSE: OXY) Cut to Sector Perform at RBC Capital.
Texas Instruments Inc. (NYSE: TXN) Reiterated Outperform and $40 target at Credit Suisse; Maintained Buy and raised target to $42 at Gleacher & Co.
Universal Tech Institute Inc. (NYSE: UTI) named Bear of the Day at Zacks.
Wells Fargo & Co. (NYSE: WFC) Started as Outperform at Macquarie.

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JON C. OGG

Accenture PLC (NYSE: ACN) Reiterated Buy with $62 target at Argus.
Alcatel-Lucent (NYSE: ALU) Raised to Buy at Goldman Sachs; Raised target to $7 at BofA/ML.
ARM Holdings PLC (NASDAQ: ARMH) Started as Neutral at Cowen.
Companhia Siderurgica Nacional (NYSE: SID) Maintained Underperform as Bear of the Day at Zacks.
Complete Production Services, Inc. (NYSE: CPX) Cut to Neutral at Credit Suisse.
Franklin Resources, Inc. (NYSE: BEN) Raised to Outperform as Bull of the Day at Zacks.
Monsanto Co. (NYSE: MON) Reiterated Buy at Argus.
Nokia Corporation (NYSE: NOK) Raised to Buy at Goldman Sachs.

SVB Financial Group (NASDAQ: SIVB) Raised to Outperform and $61 target at Credit Suisse.
Texas Instruments Inc. (NYSE: TXN) Reiterated Buy at BofA/ML.

You can join our free daily email distribution list to hear more about analyst upgrades and downgrades, top day trader and active trader alerts, dividend trends, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

As part of 24/7 Wall St.’s ongoing look at brands, the value of brands, and the purchase and sale of brands, we looked at nine large companies that changed their names. Usually, particularly for corporations that have been in business for decades, the decision carries substantial risks. Tens of millions if not billions of dollars are put into creating brand identities and visibility, often over a long period – over a century, in the case of Coca-Cola (NYSE: KO) or J.C. Penney (NYSE: JCP).

A look at large companies that have completely altered their names shows that in most cases, the change is a calculated break with the past. Philip Morris was under siege legally and financially due to tobacco litigation, which peaked in the late 1990s. Management diversified that company into food products and changed the name of the company in the hope that re-branding would take away some of the stigma of the firm’s past.

Another reason companies decide to break with old names is because they have products that become more well-known than their parent companies. These firm’s essentially increase their corporate value by putting  the brand equity of their most important product or service in the place of their own. Xerox (NYSE: X) was known as the Haloid company until its Xerox product became more recognizable among its business customers.

An exact calculation of the success or failure the decision by a company to change its name is nearly impossible to make. British Petroleum changed its name to BP PLC  (NYSE: BP) in 2001. The disaster in the Gulf has so badly damaged the oil company’s brand that it might consider changing it back. The brand was tarnished by an accident which the public believes was entirely the company’s fault. The BP brand will never recover from that, which raises the possibility that it may change its name again. No matter what BP does, there is a temptation for corporations which have been though period of trouble and bad publicity to change their names in the hope of re-branding themselves and through that process improving their images over time.

These are the nine brands that had to change their name.

On earnings previews, we only gave the DJIA components and one other as Google, to save space and time.  We have included Thomson Reuters estimates and we have given color on the valuation and other metrics.  On the non-earnings stocks, we have given previews for what lies ahead on many of the straggling issues that will go into next week and on upcoming events along with relevant recent actions in each where applicable.

Accenture plc (NYSE: ACN) is not our normal rumor mill stock, and may be more gossip than stock fanfare.  The company is rumored to be about to endorse Tiger Woods again after withdrawing its sponsorship deal after the Tiger Woods scandal (or folly) broke.  Shares were up 2.2% Friday on this at $42.83 and the 52-week range is $26.33 to $43.89.  An unusual suspect, for sure.

Alcoa, Inc. (NYSE: AA) kicks earnings season off on Monday and Thomson Reuters estimates are $0.11 EPS on $5.19 billion in revenue; versus a loss of -$0.59 EPS a year ago.  If it gives guidance, the estimates are $0.24 EPS for next quarter and $0.77 EPS for fiscal 2010; so it trades around 18-times forward earnings and its 52-week range is $8.10 to $17.60.  There seems to be a neutral bias here, meaning it would seem to rise with good news or fall with bad news more than other quarters.

Bank of America Corporation (NYSE: BAC) is giving earnings Friday with estimates of $0.09 EPS this last quarter and $0.17 EPS next quarter. At $18.55, the 52-week range is $7.00 to $19.10 and we expect to see upside to credit metrics and perhaps a blowout quarter as the only thing that will keep the bulls from taking at least some profits here.  Simply meeting estimates and being conservative in stance probably won’t make a rally here.

Boston Scientific Corporation (NYSE: BSX) is the turnaround which has never been able to turn around.  Many reports were out on Friday that it may sell two of its units (neurovascular business and pain management division, per the rumors) to raise cash and to hone in on its portfolio of medical devices.  It has a costly heart defibrillator recall, has a failed buyout of Guidant it wishes it never did, and will have up to $2.7 billion in coming-due payments in 2011.  Shares actually closed down marginally at $6.97 versus a 52-week trading range of $6.31 to $11.77.  We’ll be looking for analyst support or criticism on Monday.

Cell Therapeutics, Inc. (NASDAQ: CTIC) is trying to keep its relevance.  It is forging ahead with pixantrone for relapsed or refractory aggressive non-Hodgkin’s lymphoma and possibly other indications.  It adjourned its special meeting and scheduled a weekend conference call for a company update after it raised money after a disappointing FDA action in recent trading days.  Stay tuned, a very unusual suspect indeed.

Clean Energy Fuels Corp. (NASDAQ: CLNE) was panned in Barron’s over the weekend despite this being one of the favorite go-to stocks in the world of viable alternative energy.  This is T. Boone Pickens’ compressed natural gas play for the use of natural gas as a fuel for trucks rather than gasoline.  The article praises the company but said the valuations leave no real upside for investors.

General Electric Co. (NYSE: GE) reports Friday morning and estimates are $0.16 EPS and $37.08 billion in revenues.  Estimates next quarter are $0.25 EPS and $38.8 billion in revenue.  Its earnings estimates are $1.02 EPS in 2010 and then $1.24 EPS in 2011,  That being said, Immelt and friends likely need to beat estimates and raise guidance.  If not, then this is not any longer a cheap stock.  We noted that Morningstar gave a $25 fair value target recently over the long haul, and we still believe GE will start lifting its dividend either this quarter or this year rather than its 2011 target.

Google Inc. (NASDAQ: GOOG) is expected to report $6.57 EPS and $4.93 billion on Thursday, showing over 25% earnings and over 21% revenue growth.  The 52-week range is $364.16 to $629.51; and it trades at 20-times 2010 expected earnings and less than 18-times 2011 earnings expectations.  With CPMs being very weak in many publisher and site sectors in February and with it having under 70% of search (barely) in March for the first time since June-2008, we’ll be keeping an eye on this one to see if it can blow out its earnings as some analysts are expecting.

Media reports say Woods may play in the Masters which runs from April 5th through the 11th. Woods is probably more welcome there than at any other place that he plays. He has won this tournament four times and has the chance to pass Jack Nicklaus, who has six, before he retires. Woods can also count on the best crowd control of any tournament there. Augusta is a private club run by a very tough board of directors.

Woods would need to show up with his wife, two children, and mother to be viewed as socially rehabilitated by the golf world and the public. His “brand” is probably strong enough for him to resurrect his image over the next year or two. There are certainly models of athletes who have stumbled in public and regained their position with fans. Kobe Bryant is the most recent example.

Nike Inc. (NYSE: NKE) has so far stuck by Tiger, as has Electronic Arts Inc. (NASDAQ: ERTS).  Those issues might not be front and center as there are many aspects to bother companies way above and beyond Tiger Woods.  Neither company has indicated any change to the relationship.

Woods said today that he does not know when he will return to golf, but did specifically note that he was not ruling out a return to the sport this year.  His attack against the media is an understandable one because no one likes having their family’s life being monitored and their privacy invaded.  There is just one small problem, and that is that when you reach a celebrity status and make that much money off the public then that same privacy goes out the window.

Procter & Gamble (NYSE: PG) via Gillette has cut way back on promotions and Accenture plc (NYSE: ACN) dropped Tiger Woods.  PepsiCo Inc. (NYSE: PEP) also canned its ‘Focus’ brand, although there were reports that the brand was being squashed before the scandal hit.  AT&T Inc. (NYSE: T) also ditched the PGA sponsorship at the end of last year, and American Express Co. (NYSE: AXP) has backed off even before things blew up out of control here.

He did mention Accenture by name when he said, “I would like to thank my friends at Accenture and the players in the field this week for understanding why I’m making these remarks today.”  His friends at Accenture dropped him.

Today was an odd event.  It is very rare for the media to get a live conference like this with no questions and not a single media barrage from any of the reporters.  This was more like something you would see out of Washington D.C. or after a natural disaster rather than in the world of sports and entertainment.

In the realm of corporate sponsorships of athletes and entertainers, there are some clear winners and some clear losers.  In this instance, at least so far, these may end up being come from behind victories rather than the lay-up they were in 2009 and before.

JON C. OGG
FEBRUARY 19, 2010