(1) an improvement in global application spending,
(2) continued spending on R&D generates a solid product pipeline,
(3) acquisitions,
(4) an ongoing cost reduction effort,
(5) a stock buy back program.
Negatives:
(1) there are substantial integration costs associated with the recent acquisition on Sun Microsystems,
(2) its numerous acquisitions has led to goodwill and intangible assets equaling 40% of total assets; in addition, integrating these acquisitions are a distraction from its core business,
(3) its high debt level increases its financial risk,
(4) intense competition.
ORCL is rated A++ by Value Line, has a 27% debt to equity ratio and its stock yields 0.9%.
Stock Yield | Dividend Growth Rate | Payout Ratio | # Increases Since 2009 | |
ORCL | 0.9% | 19% | 10% | 2 |
IND | 1.3 | 12* | 25 | NA |
Debt/Equity | ROE | EPS Down Since 2001 | Net Margin | Value Line Rating | |
ORCL | 27% | 28% | 0 | 32% | A++ |
IND | 17 | 25 | NA | 11 | NA |
*almost no company in ORCL's industry pays a dividend
Chart
Notes: ORCL stock made excellent progress off its March 2009 low, quickly surpassing the down trend off its August 2008 high (red line) and the November 2008 trading high (green line). Long term, the stock is in an up trend (straight blue lines). Until recently, it was also in an intermediate term up trend; however, it broke that trend and re-set to an intermediate term trading range (purple lines). The wiggly blue lines are Bollinger Bands. The Aggressive Growth Portfolio owns a 75% position in ORCL. Shares would be Added at $26; the lower boundary of its Sell Half Range is $47.
http://finance.yahoo.com/q?s=ORCL
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