Opinions
Bruce Murray
Oracle
ORCL-N
HOLD
Sep 18, 2018
Stock price when the opinion was issued
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Taken to the woodshed this week, mainly due to Trump and Stargate last week. He's been buying this week. No one's brought their price targets down. Monday may have been difficult, but it's a great opportunity to put some cash to work.
Pivoted nicely the way MSFT and IBM did years ago. Fourth main player in the cloud, which gives them recurring revenue. Best at cross-selling.
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.
(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.