| Stock (Symbol) | Stock Price | |
Cognizant Tech. Solutions (CTSH) |
$70 |
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| Data is as of | Expected to Report | Sector |
November 16, 2011 |
Feb 6 |
Technology |
| Sharek’s Take | ||
 Note: this data is from November 16, 2011. I will purchase CTSH today, December 30, 2011 at $64.I will purchase Cognizant Technology Solutions (CTSH) in the Growth Portfolio today. CTSH is based in New Jersey and outsources information technology projects to India. CTSH is one of the safest, most stable growth stocks I know. I’ve owned this stock so much in the past one could say we have a special bond. I can trust this stock, and feel it will give us 20% growth without having to worry. |
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| One-Year Chart | ||
 The one-year chart shows CTSH peaked in April and has digested its gains it made in 2008/2009. The stock’s P/E was too high at the time and CTSH needed to take a break.This stock is capable of 20% growth on a consistent basis. That’s worth 25 times earnings. The current P/E of 20 is good. |
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| Earnings Table | ||
 Profits rose only 11% last quarter, but that was a one-time thing. Revenue jumped 32%, so I’m not concerned with the slow profit growth.CTSH beat by 2 cents last quarter and has developed a solid history of upping a little then beating by a little. Nice. Annual Profit Estimates are ticking higher. I like this. 2012 profits are expected to climb 20%. Quarterly estimates show profit growth is expected to pick up later in 2012. All estimates increased a little, a good sign. I like this earnings table, its stable. |
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| Fair Value | ||
 I’m buying CTSH at $64 and think it’s worth $85, that’s a solid 33% upside in the coming year. |
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| Ten-Year Chart | ||
 I furst purchased CTSH at $12 on 1/5/2004. In 2005 and 2006 it was one of, if not the, largest holdings. Clients made a lot of money in this stock. I sold CTSH at $17 on 12/29/08, but by that time it was a smaller position as I had taken profits in the past. Still, this was a dumb move — CTSH raced to $59 by 8/12/10, the day I got back in. I sold at $78 on 4/18/11 because the stock was fully valued. Today I’m back in at $64. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
10 of 20 |
2012 should be a year where stable stocks reign supreme. Although CTSH does not pay a dividend, it has a solid record of consistency that should be rewarded in the coming year. I trust this stock. CTSH is ranked 10th in the 20 stock Growth Portfolio Power Rankings. I won’t put the stock in the Aggressive Growth Portfolio just yet because I think the stocks I have in there now can pop on a good earnings report. |
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Aggressive Growth Portfolio
N/A |
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