Perficient (PRFT)

Company

"Perficient is a leading provider of eBusiness solutions to Global 3000 companies. We help clients acquire and strengthen customer relationships, reduce costs and empower employees by creating an Enabled Enterprise." (company website)

For those who are wondering, "An Enabled Enterprise is an Internet-based infrastructure and dynamically integrated business applications that extend enterprise technology assets to customers, suppliers, partners and employees." Blah, blah, blah.

Buy

9-Dec-04. Perficient turned up in a screen for stocks with a "price and volume explosion." There have been several days of price jumps on much higher than normal volume. These brought the stock above the previous peak for the year.

I think PRFT still has "legs." The trend is strong (black ADX line). In the last six weeks, money flow (CMF) has gone from very negative to strongly positive. Relative strength (RSI) is very strong and has turned up.

Sell

3-Jan-05. I wasn't planning on selling PRFT today. Earlier in the morning it was down and I was running a small loss. Then suddenly the price began to rocket. When I saw it get as high as $8.50 I looked for news and found some. At that point I put in a trailing stop to sell if the price dropped 3% from its high. In the volatility of today's market, that happened quite soon.

News. Perficient upped its guidance for the fourth quarter and within seconds of the announcement both volume and price spiked.

The company expects its Q4 services and software revenue, net of reimbursed expenses, to be in the range of $20.3 million to $20.9 million, comprised of $13.0 to $13.4 million of services revenue and $7.3 million to $7.5 million of software revenue. This compares to the previous guidance range of $13.0 million to $13.6 million (which included $1.0 million of software revenue) provided in the third quarter 2004 news release and conference call on November 3, 2004. It is the company's practice to include in its revenue guidance only those software sales actually booked as of the guidance date.

— Business Wire

As the saying goes, When opportunity knocks.... take the profits!