Oracle (ORCL) 2011 Review

Oracle develops, manufactures, markets, distributes and services database and middleware software, applications software and hardware systems (computer server and storage devices). The company has grown earnings at a 20% rate over the last ten years. It has paid a dividend for only three years; but that dividend has grown from $.05 per share to $.21. ORCL has consistently earned a 25%+ return on equity. This outstanding performance should continue as a result of:

(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.