Opinions
Bruce Murray
Oracle
ORCL-N
HOLD
Sep 18, 2018
Stock price when the opinion was issued
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Hasn't had a chance to look closely at yesterday's earnings. Stock's at a 52-week, if not all-time, high today. Looks interesting, given the cloud space it's in. Not expensive at 2x PEG, with forward PE of 29-30x. Earnings growth rate ~16%.
Technically, meets his criteria. 200-day MA is trending higher, and price is above that. High beta, volatile.
Went into yesterday with a 6% position in his fund, now just above 8%. Probably won't trim until it gets between 9-10%. Backlog was 360% more than what was expected.
Views it same way as IBM. Both are legacy technology stocks. But then the light went on and they got into the cloud and data centres.
Premium contentOracle reported a revenue of 14.9B, which is a -6.1% change from the previous quarter. An increase in revenue typically indicates growing demand for the company's products or services. A decline in revenue can be concerning, as it might indicate reduced sales or challenges in the market. It's important to investigate further to understand the underlying causes. Social media mentions are up 217.5% in the past 24h.
(A Top Pick November 13, 2017. Down 1%). This reminds him of Oracle and Cisco, which sat at the same level for a long time and then revitalized themselves. Oracle relies on the big banks and other large companies with large databases. Other companies have moved into Software As A Service with applications that run across the cloud. Oracle’s customers have huge data centers and don’t need to move. Data protection is challenging in the cloud. The street has been looking to Oracle to increase its presence in the cloud. It is moving but not as fast as people want. He likes the business and it will get there eventually, but it will take more time.