Market Read®

  • Thursday, July 10 2014

This prediction has hit its target!

As predicted, the stock moved up from $76.77 to $80.84 (5.3%)
between February 28, 2013 and March 07, 2013.

This prediction has passed its maturity date!

This prediction was valid between February 28, 2013 and March 08, 2013. All information in this report is for reference only and should not be considered forward looking.

(NASDAQ: CTSH)

Cognizant
Technology
Solutions


Bullish

Cognizant Technology Solutions Corporation provides information technology (IT), consulting, and business process outsourcing services in North America, Europe, and internationally. Its IT consulting and technology services include business and knowledge process consulting; IT strategy consulting; program management consulting; technology consulting; application design, development, integration, and re-engineering, such as complex custom systems development, data warehousing/business intelligence, customer relationship management (CRM) system implementation, and enterprise resource planning (ERP) system implementation; and software testing services. The company s outsourcing services comprise application maintenance, including custom application, CRM, and ERP maintenance; IT infrastructure outsourcing; and business and knowledge process outsourcing. It serves various markets, such as financial services, healthcare and life sciences, manufacturing, logistics, retail, travel, hospitality, consumer goods, communications, and high technology, as well as information, media, and entertainment markets. The company markets and sells its services directly through its professional staff, senior management, and direct sales personnel. Cognizant Technology Solutions Corporation was founded in 1998 and is headquartered in Teaneck, New Jersey.

Investment Highlights

  • GATS predicts CTSH will move up in the coming weeks. Target is $79.76. more
  • GATS predicts CTSH will move up in the coming weeks. Target is $80.84. more
  • SQUEEZETRIGGER predicts that when CTSH closes above $60.21, we expect a short squeeze to begin that could quickly drive the price of CTSH considerably higher.
  • VALUATION CTSH has a current calculated value of $83.79 which means the stock is undervalued compared to its price of $50.42.

Predictive Range February 25, 2013 - March 08, 2013

Anticipated price movement, between prediction date and target date, based on all market reads.
$76.68 - $80.30

How WealthMakers Market Reads Work:

WealthMakers Market Reads™ provide you with market performance predictions based on proprietary technologies, trading algorithms and data to help you make better, more informed investment decisions. Here's a quick review of our predictive technologies:

  • EARNINGS Most stock price histories show random or unpredictable movements around earnings reports. But some repeat the same pattern quarter after quarter, year after year. Earnings predicts probability, price move and length of move before and after all US stock earnings reports.
  • FRICTION FACTOR Friction Factor is based on the relationship between the price of a stock and the volume at which it's bought and sold. Normal and abnormal Friction factor patterns can help you time your buying and selling decisions for maximum earnings potential.
  • GATS The Global Automated Trading System (GATS) combines neural networks and genetic algorithms to reduce investment risks. GATS selects the highest probability trades in stocks, bonds, options, commodities, currencies and private equities, delivering precise, predictive and profitable data.
  • GROUP SECTOR Certain institutions can exert buying or selling pressure over an entire industry group, pushing prices higher. Group Sector identifies stocks that most closely match their group's movement and generate powerful group consensus trading signals to help you profit from the herd mentality.
  • PATTERN SCAN This technology automatically tracks "Trigger Events" that positively or negatively affect the value of a stock — or its perceived value among analysts — ranging from price fluctuations to natural disasters and political shifts. The results reveal patterns that can predict market movements.
  • EVENTS Events describe the current technical situation in your stock. It displays the technicals, trend conditions and seasonal factors and automatically discovers how that stock has performed in the trading days following the occurrences of the event or combination of events. This technology automatically scans using complex historical queries based on what event is taking place right now in the stock. It then displays the probability, expected return and number of trading days for the expected move.
  • RegSHO NAKED SHORTS SEC Regulation SHO mandates that if a clearing agent holds a fail-to-deliver position for 13 consecutive settlement days, it must purchase securities to close out its position, a.k.a. a forced cover. WealthMakers aggregates data from NYSE, AMEX, NASDAQ, OTCBB and PINKSHEETS to track stocks that are about to have forced covers.
  • SEASONALITY Seasonality analyzes more than 20 years of data to determine if stocks have a long or short seasonal bias, how many trading days the move is expected to last, the probability of that move and the percentage move the stock is expected to make based on the seasonal bias.
  • SQUEEZE TRIGGER Our proprietary database of more than 3,500,000,000 short sale transactions allows us to calculate the exact price at which the total short interest is short in each stock. Squeeze Trigger Alerts let you know exactly when a short squeeze will start and how to trade profitably.
  • VALUATION A stock's value is a function of its forecasted earnings per share and forecasted earnings growth, as well as profitability, interest and inflation rates. Valuation use these metrics to determine at what price a stock is undervalued or overvalued, so that you can make investment decisions accordingly.
  • INSIDER Significant stock sales or purchases by company "insiders" (officers or directors) can be a predictor of future price movements — up or down. The Insider strategy tracks these actions and correlates them with historical data to give you an investment edge.

GATS

 

Reduces risk by selecting the highest probability trades across market indices.

Cognizant Technology Solutions (NASDAQ: CTSH) is expected to go up as bullish signals have been generated by top equity trading strategies. This trading system is designed to identify high probability reversion to mean trading candidates. It looks to go long immediately following strong sell-offs, and goes short after sharp run ups. Its trades are short term and hone in on the irrational decisions of emotional traders around these extreme moves.

  • The price of CTSH expected to move up in the coming weeks.
  • Suggested stop level of 68.74 to limit potential trading losses.

Squeeze Trigger

 

We have a proprietary database of all trading in US stocks and maintain massive databases of short sale and naked short sale time and sales data, along with short squeeze SqueezeTrigger prices. We are the only firm that knows the exact price that a short squeeze will start in every US stock.

The Cumulative Squeeze Trigger price for CTSH is 60.21.

This means that when CTSH closes above $60.21, we expect a short squeeze to begin that could quickly drive the price of CTSH considerably higher.

Date Short Volume Short Value SqueezeTrigger
2014-07-31 1270927 63075471.5465 49.6295
2014-06-30 12117086 589576206.668 48.6566
2014-05-31 13999552 674058829.427 48.1486
2014-04-30 858803 43992183.675 51.225
2014-03-31 5355300 392147197.8 73.226
2014-02-28 4042251 381924405.458 94.4831
2014-01-31 3346119 332102310.75 99.25
2013-12-31 2753730 259621113.654 94.2798
2013-11-30 5004878 451706255.11 90.2532
2013-10-31 8194794 697877671.313 85.1611
2013-09-30 10946906 871763427.454 79.6356
2013-08-31 12507297 915495367.779 73.1969
2013-07-31 1496325 95845152.6525 64.0537
2013-06-30 12626687 805171000.604 63.7674
2013-05-31 22246865 1442368818.22 64.8347
2013-04-30 14545913 1005329140.26 69.1142
2013-03-31 1345167 106001849.934 78.802
2013-02-28 5773935 447730551.279 77.5434
2013-01-31 7492022 574653071.444 76.702
2012-12-31 11116616 794216625.166 71.4441

Friction Factor

 

Friction Factor determines if there is normal or abnormal behavior in the price action of the stock when compared to the buying vs. selling trading statistics. It shows us how many more shares of buying than selling it takes to move a stock higher by 1 cent, or how many more shares of selling than buying it takes to drop a stock by 1 cent.
Here is how to understand Friction Factor:

  • If Friction Factor is positive, more buying than selling caused CTSH's price to rise
  • If Friction Factor is negative, more selling than buying caused CTSH's price to fall
  • If Friction Factor is 0, there was no discernable activity either way
  • If Friction Factor is abnormal, it means that more buying than selling caused the price to drop which is evidence of manipulative activity. In some cases more selling than buying can cause the price to increase. While this is rare, it must be noted as well. Friction Factor raw data.

Date Change Buy Vol Sell Vol Net Vol Friction
2014-07-03 0.25 813951 396294 417657 16706.28
2014-07-02 0.07 1116347 671758 444589 63512.71429
2014-07-01 0.89 1525753 1601858 -76105 Bullish Bias
2014-06-30 -0.39 1749627 1303512 446115 Bearish Bias
2014-06-27 -0.09 1273391 909201 364190 Bearish Bias
2014-06-26 -0.32 1316005 1331231 -15226 -475.8125
2014-06-25 0.65 1288229 1074032 214197 3295.338462
2014-06-24 -0.31 1205851 1329966 -124115 -4003.709677
2014-06-23 0.06 994819 1008617 -13798 Bullish Bias
2014-06-20 0.45 4074527 1342948 2731579 60701.75556
2014-06-19 -0.05 1459956 923229 536727 Bearish Bias
2014-06-18 0.51 2207615 1999655 207960 4077.647059
2014-06-17 0.73 2419389 2269358 150031 2055.219178
2014-06-16 0.36 2286196 1877468 408728 11353.55556
2014-06-13 0.44 1095980 1024399 71581 1626.840909
2014-06-12 -0.32 1320805 1656769 -335964 -10498.875
2014-06-11 -0.22 1996203 2257953 -261750 -11897.72727
2014-06-10 -2.38 3897853 4484785 -586932 -2466.10084
2014-06-09 -0.01 952812 1186082 -233270 -233270
2014-06-06 0.83 1864327 1207473 656854 7913.903614

Valuation

 

Value is a measure of a stock's current worth. CTSH has a current value of 83.79 per share. Therefore, it is undervalued compared to its Price of $50.42 per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease.

General Results

 

Past success in predictions regarding all predictions on the WealthMakers platform.

Our prediction engine has a track record that is second to none. See for our results.

Read Type Avg Return Avg Maturity Days Hits Misses % Accurate
Insider 15.127 73.12 9082 474 95.04%
SqueezeTrigger 12.737 22.37 7779 472 94.28%
Group Correlation 7.346 14.96 1308 88 93.70%
Valuation 14.484 26.96 4201 302 93.29%
Seasonality 7.458 15.2 42589 4126 91.17%
PatternScan 8.448 11.37 133305 19233 87.39%
Events 6.942 11.19 3387 543 86.18%
GATS 5.388 7.95 45028 8523 84.08%
Earnings 8.681 10.28 21679 4349 83.29%
Naked Shorts 14.491 10.83 2233 589 79.13%
Friction Factor 7.503 3.63 5599 1602 77.75%

About Wealthmakers

WealthMakers gives institutional and individual investors an exclusive advantage in making precise, predictive and profitable trading decisions. Our proprietary technologies — Earnings, Seasonality, Squeeze Trigger, Group Sector and GATS — apply artificial intelligence, proprietary algorithms, market data and research to help our clients realize exponential returns. Find out more at WealthMakers.com.

All material herein was prepared by WealthMakers, based upon information believed to be reliable. The information contained herein is not guaranteed by WealthMakers to be accurate, and should not be considered to be all-inclusive. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. WealthMakers is not a registered investment advisor in the State of California. Please consult a broker before purchasing or selling any securities viewed on or mentioned herein. WealthMakers or its affiliates may receive compensation from independent third parties, or from the companies mentioned, for data provided in this report or related services. WealthMakers affiliates, officers, directors and employees do not own shares of the company mentioned in this report, but may from time to time buy/sell the shares discussed in this opinion and may profit from those trades. Market commentary provided by Thomas Ronk, a registered investment advisor and commodities trading advisor in California. WealthMakers will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgment.

All Rights Reserved. Copyright 2011 WealthMakers

Overview
Last Price$50.42
52 Week Range$33.33 - $54.00
1 Month Range$46.78 - $50.99
Avg Daily Volume3472430.0
PE Ratio23.58
 
Earnings Per Share
YearEPS
2014(E)$2.115
 
Capitalization
Shares Outstanding608MM
Market Capitalization$30605.00MM
 
 

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