The sprint is on until the end of 2012. Recent stock price movements look sustainable in the absence of 2013 visibility, which we don’t expect this quarter. Investors remain locked in their positions, “Playing Prevent Defense Until Year End”. The decision to trim positions at 52-week highs is the easy part. The problem is finding areas to reinvest those profits as most stock prices have been bid up, which is why we believe investors are sticking with their present winners. On the short side, the opportunities are scarce if you are looking for names that might miss expectations. We advocate sticking with the fundamental approach and avoiding getting too cute with your portfolio. Our BUY-rated names are IBM, Accenture, Cognizant, Syntel, Virtusa, Genpact, EXLService, and WNS.
For more information, please contact:
Joseph D. Foresi