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 an 18% rate over the last ten
years. It has paid a dividend for only
four years; and that dividend has grown from $.05 per share to $.24 in
2012. ORCL
has consistently earned a 25%+ return on equity. This outstanding performance should continue
as a result of:
(1) its dominant
industry position making it a prime beneficiary of above average industry
growth,
(2) above average
growth in software as service and cloud services,
(3)
acquisitions,
(4) highly
innovative R&D effort,
(5) pursuing
hardware related strategies which should raise profit margins.
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.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2009
Debt/ EPS Down Net Value Line
Equity ROE Since 2002 Margin Rating
*almost no company in ORCL ’s industry
pays a dividend
Chart
Note:
ORCL stock made good initial progress off
its March 2009 low, quickly surpassing the downtrend off its August 2008 high
(red line) and the November 2008 trading high (green line). Long tem, the stocks is in an uptrend
(straight blue lines). Intermediate
term, it is in a trading range (purple lines).
The wiggly blue line is on balance volume. The Aggressive Growth Portfolio owns a 75%
position in ORCL . The upper boundary of its Buy
Value Range Sell
Half Range
10/12
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