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IT service provider
Wipro (WIT - Get Report) rounds out our list of hated foreign stocks. This Bangalore, India-based outsourced IT provider currently sports a short interest ratio of 12.1.
Wipro is best known for its IT services unit, which generates around three-quarters of the firm's total sales. The business started out offering large corporations cheaper outsourced IT expertise than they could find at home, but the firm has evolved to hold itself out as a higher-end consulting firm that competes with all of the most recognized IT service firms here at home. Wipro's ability to earn revenue both as a conventional IT service firm and as a cost-centric outsourced IT provider means that the firm is able to court companies looking for top-level solutions at a price as well as those just looking to cut costs.
One of the more bizarre aspects of Wipro is its consumer segment. While the firm's computer sales business at least makes sense, it also owns a division that makes products like cooking oil and soap -- not exactly a complementary business. The firm's decision to split its two disparate businesses apart is a wise one. It should help to boost overall margins for the more important IT side of the business. Investors should be on the lookout for a short squeeze in this stock.
To see this week's short squeezes in action, check out the of
Foreign Short Squeezes portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.