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The Sacramento Executive Fund manager, Pierre Cutler, today issued a strong buy recommendation for Cognizant Technology Solutions Corp. (CTSH). CTSH is a provider of information technology consulting and outsourcing services for global 2000 companies.
The company is 38% off its 52-week high of $47.78, closing on Friday at $29.84. Key five-year annual growth rates are stellar - sales up 51.5%, net income up 60.1%, return on invested capital up 26.1%. The company generates plenty of operating cash - growing from $57M to $253M the last five years. Consensus analysts' projected five-year earnings growth rate is 30.4%. With an intrinsic value of $105.10, the company is priced at a 71% discount.
Thanks to investors' fear of Mr. Market, this company is on the 70% clearance sale table and the Sacramento Executive Fund is greedy for CTSH.
Note: The Sacramento Executive Fund owns CTSH and will continue to invest up to 10% of the fund at this price.
Pierre Cutler
The Sacramento Executive
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