August 26, 2010

We are short on Teradata (TDC) from $31.55. The stock has been running up on the rumor Mark Hurd will be named CEO of the company. Hurd was  CEO of NCR before he was picked by Hewlett-Packard Company. TDC, a data warehousing vendor, was spun off from NCR. None of ZYX Change Method screens are supportive of this run up

The rumor makes no sense. TDC has a well entrenched CEO and the stock has performed well. Moreover, TDC is not in the need  of cost cutting which is  hallmark of Hurd. We have taken only 5% of the full position due to high potential M&A risk .