The Rebound in Cognizant

One of the lessons of investing is that periodically, the market freaks out. Sometime the reasons are good, many times, they’re not.

Last September, shares of Cognizant Technology Solutions (CTSH) plunged after the company said that an internal investigation revealed that the company may have violated the U.S. Foreign Corrupt Practices Act. Cognizant notified the SEC and DOJ. The same day, the company’s president resigned.

That day, the stock got crushed. At one point, CTSH dropped down to $45.44, which was a loss of 17.4% for the day. By the closing bell, the stock had shed 13.3%.

We waited the mess out, and today CTSH is at a new 52-week high. Today’s high was $66.30 per share.

To quote Warren Buffett, “the stock market is designed to transfer money from the active to the patient.”

Posted by on May 23rd, 2017 at 3:07 pm

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