Strong Buy -Price 18.24 on Nov. 11
by Wedbush Morgan

Israel-based Amdocs is a leading provider of customer care and billing, customer-relationship-management and order-management systems for wireless, wireline, broadband, IP, and convergent-service providers. Amdocs exited Q4 with operating margins of 17.9%; management [sees] maintaining these margins through 2009, even amid a difficult macro environment...We find Q1 guidance and expectations reasonable. For Q1, management expects revenue of $785 million to $810 million, which is 6% to 9% growth year over year. Excluding [foreign-exchange] impact, management indicated growth would have been about 3% higher. Consensus expectations are for 7% year over year growth. Target: 34. Market cap: $4 billion.

PE of 15, and a PEG of 0.83.

World leader in (CES), Customer Experience Software. They are obtaining large new accounts worldwide.

The stock has a PE of 18 and a PEG of 1.04

appreciation

Amdocs recently announced a $400 million dollar buyback.

Amdocs Limited provides software products and services to the communications industry worldwide.

The stock trades for 11x cash flow.

Growing rapidly and selling for 16x 2008 earnings

From Barron's 7-16-07:

"On the flip side, Marshall points to a smaller stock: Amdocs. Citing Goldman's IT-services analyst, he thinks coming earnings statements for the software and services company will be less of an event than the options market is currently pricing in. And, importantly, Amdocs (DOX) is not likely to be taken out in the near term, the analyst believes.

So consider selling a combination of both the August 40 puts and the August 40 call options. Right now, that can fetch about $3, which means the straddle sellers will profit as long as DOX remains between $37 (or about 6.8% below the current price of $39.69) and $43 (or about 8% above the current price) before these expire.

The average move this stock has made following the last eight earnings reports is 2%, Marshall notes."

Solid fundamentals

PT 47