$TDC breakout and retest! (3/5)

Conviction: 3/5


General Thesis

• Weekly RSI looks is attractive but likely to go lower
  
• Daily RSI turning up from oversold positions
  
• breakout from 2012 down trend resistance, could be the start of a leg up!
  
• target $60
  

Growth

• Gross margins (57%) is pretty steady, at/near historical highs
  
• Revenue growth (1.32%) around 75th percentile
  

Value

• P/FCF below average (40th percentile)
  
• P/S below average as well (25th percentile)
  

Fundamentals & Balance Sheet

• quick ratio good (~1), although trending down
  

Potential Risks

• short history
  
• quick ratio has been deteriorating sincepeak in 2017
  
• price could continue to move down trend line
  
• stop loss at recent trough: $40