Friday, June 18, 2010

Meaning from data

On Financial Tides I bring you stocks that are worth considering for your portfolio. I'm taking a video course from Professor Michael Starbird of the University of Texas at Austin called Meaning from Data: Statistics made clear. The first thing he emphasises is that raw data is meaningless and has no value until it is properly analyzed. That is what this company does.

Teradata Corporation (TDC) is the world's largest company focused on raising intelligence through data warehousing and enterprise analytics. Teradata is located in more than forty countries. Teradata is a trademark or registered trademark of Teradata Corporation in the United States and other countries. Teradata Corporation employs 5,300 worldwide.

All 13 of Barchart's technical indicators are signaling a buy and the stock hit 5 new highs in the last 5 trading sessions. The stock enjoyed a 6.63% price increase in the past month. The stock trades around 33.63 with a 50 day moving average of 30.92.

Investor sentiment as measured on Motley Fool is strong with CAPS members voting 270 to 17 that the stock will beat the market. The more experienced All Stars have a similar vote of 124 to 5.

Wall Street brokerages like this stock with 7 buy and 2 hold reports published. They feel sales will increase 9.40% this year and 8.10% next year. I like their double digit earrings forecasts of increases in EPS of 12.80% this year, 15.00% next year and a 5 year compounded EPS growth rate of 12.50%,

Last year the total return to stockholders was 73.86%.

The stock should be considered because:
  • It has had recent price appreciation and a 100% Barchart technical buy signal
  • Strong investor sentiment
  • Wall Street buy recommendations based on increases in sales and double digit increases in EPS.

Jim Van Meerten is an investor who writes on financial matters on Financial Tides,Barchart Portfolio Blogs, Seeking Alpha, Marketocracy and MSN Top Stocks. Please leave a comment below or email JimVanMeerten@gmail.com

Disclosure: No positions in the stocks mentioned at the time of publication

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