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The best stocks to buy since 1993

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CBay Systems - Indian BPO story

July 2007

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • CBAY
  • Price:
  • 94.5p
Many subscribers might consider business process outsourcing (BPO) a dirty word, especially if they have ever called their bank or insurer and got through to an impersonal Indian call centre. But as an investment BPO businesses make for attractive growth stories. In the case of CBay, like the call centre, its business is predicated on continuing access to a low cost workforce where annual wages are typically US$8,000. The key area of growth in recent years has come from its pool of trained staff in India who provide a medical transcription service for US doctors, whereby its staff will receive dictations from doctors and convert these to electronic documents for patient records. The business has high gross margins of 50% and lon ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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