WZE, NTWK, OPWV, CNIT: Keep Holding But Don’t Add More

Wizzard Software Corporation (AMEX: WZE), NetSol Technologies Inc (NASDAQ: NTWK) and Openwave Systems Inc (NASDAQ: OPWV) are in a strong upside movement and may extend their gains in the next week too. It is time to hold on to them and avoid the titillation of adding more at high levels. Retail investors need to be extra cautious as they are the first one to sell on rallies and try to get into a falling stock too soon after every correction of 4-5 per cent.

Wizzard Software Corporation (AMEX: WZE) closed 4.5 per cent yesterday, taking its monthly gains to 48 per cent. The stock price jump is complemented with strong volumes. Despite the jump in stock price, the RSI level of 58 indicates markets’ comfort with current prices. It can be kept for some more days and by Tuesday or Wednesday, the picture will be clear if the rally stays or just tapers off.  

NetSol Technologies Inc (NASDAQ: NTWK) is also in a bull phase and has jumped 20 per cent in the last month. After this entire rally, the stock appears tired and thus, fresh buying at these levels isn’t recommended. However, selling at $1.78 is also not a good step. Keeping a trigger price of $1.65 will do the trick.  

Openwave Systems Inc (NASDAQ: OPWV) has increased 8 per cent since my last coverage of the stock in June. This debt free company has crossed $200 million in market capitalization this week and there may be more milestones to be crossed. While it is not showing signs of fatigue, it is still a good option to keep a stop loss and enjoy the upside if any.  

China Information Technology Inc (NASDAQ: CNIT), the other value pick suggested in the last coverage has also appreciated more than 40 per cent in the last 5 trading days. A strong business with continuous cash flow should be one of the prerequisites for investors looking to make serious long term stock positions in a company. CNIT’s business of geographic information systems (GIS), digital public security and hospital information systems with a profit margin of 30 per cent fits in this definition. However, the stock seems to have run-up too fast and this prompts me to think again about the potential upside left in it before the price starts coming down. If the stock moves further on the upside, it may be a good strategy to keep revising the trigger price on the upside after every 4-5 per cent jump.