This week my Safari portfolio seeks a company in the communication services sector but by mistake, I found this promising pick in Technology.

The communication services sector has companies that connect us electronically in either of two ways: telecommunications, or pay TV.

Technology, however,  covers nineteen industries on of which is data storage. (Which can be used in communication services).

Today I'm accidentally reviewing the data storage technology company named Teradata Corporation. It's trading ticker symbol is TDC. 

Teradata Corporation offers analytic data platforms, applications, and services for data warehousing and analytic technologies.

The company has strategic partnerships with Accenture Limited, Capgemini Group, Cognizant Technology Solutions Corporation, Deloitte LLP, International Business Machines Corporation, and Wipro Limited. Teradata Corporation was founded in 1979 and is headquartered in Dayton, Ohio.

I use three primary keys to gauge dividend equities or funds like Teradata Corporation (TDC): 

(1) Price

(2) Dividends

(3) Returns

After those three, I'll use four more keys to unlock an equity or fund in which to invest.

The first three keys, though, best test whether a company has made, is making, and will make money. 

TDC Price

Teradata's price at Monday's market close was $41.22 per share. The company has made money for investors. One year ago its price was $29.03. It's  gained  $12.19 per share in the past year.  And at $41.22 is $11.22 over my price limit for my Safari portfolio. 

If Teradata does as well in 2018 its price will increase from $41.22 to $53.41 per share or about 29.5%.

TDC Dividends

Teradata Corporation pays no dividends so its disqualified for my Safari both by too high a price and no dividend.  

Gains For TDC?

My $12.19 estimated year over year price gain, shows that as a potential gross gain for the coming year with no dividend.  

The cost to trade Teradata shares is a broker fee of $5 at purchase and another $5 at sale. Buying $1,000 worth at yesterdays closing price would get us 24 shares. and the brokers cost per share is $0.42.

Subtracting that $0.42 brokerage cost from the estimated $12.19 gross gain shows a possible net gain to 2019 of $11.77

X 24 shares 

= $282.48

or a 28.5% net gain on our $989.28 investment.

Therefore, Teradata Corporation (whose ticker symbol is TDC), shows a possible 28.5% gain by my simple year over year calculation with no dividend included. 

22 analysts cover this stock and say it' overpriced. Analysts say TDC's price should be $35 instead of $41.22.

These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen.  They could turn out to move far lower. More study is required for you to determine if Teradata Corporation is worth your time and money.