TDC will go DOWN
$56.00 on 6/02/12
$31.04 (-53.39% from time of market call)
Stock has performed well due to release of positive data, but also getting carry from the sector. The RSI(9) = 77.80 indicates TDC is substantially overbought while recent volumes are below average. The MCAD data indicates that the trend is subsiding and there could be a crossover event in the short term, which is yet another bearish indicator. Insiders are excersizing substantial portions of Options and liquidating their own positions. In addition, Oracle and IBM are producing their own data warehousing options that are in direct competition with TDC. TDC will have carry from curent contracts and an advantage of TDC is its client list, such as eBay or Walmart, who may stay put due to the difficulty of transitioning to a competitor.
Conclusion: Evidence suggests TDC is headed down and it would be no surprise if it dropped heavily and then eventually settled around 56.00 per share.