"If they stay at these prices, private equity or strategic buyers could move in and close the discount," Olstein said. "Most investors prefer to run with the crowd and pile into the latest fads which can be a long-term recipe for investment failure. At Olstein we tend to buy companies before the acquirers because we will buy the temporary bad news which creates the valuation discounts and then ride out the storm. "
Olstein invests like a private equity investor without paying the same premium paid. He believes Oracle or Hewlett-Packard could move in on a Teradata in the short term. Just Tuesday, Oracle was rumored to be in discussions to takeover Micros Systems, which jumped 20 percent in the last three days.
Olstein, of course, owns Micros shares.
—By CNBC's Donna Burton
Disclosure: Olstein does not own shares of Oracle, HP or Teradata but his firm, Olstein Funds, does.