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 $.30 in 2013. 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) share
buybacks.
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) 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 progress off its March
2009 low, quickly surpassing the downtrend off its August 2008 high (straight
red line) and the November 2008 trading high (green line). Long term the stock is in an uptrend (blue
lines). Intermediate term it is in a
trading range (purple lines). The wiggly
red line is the 50 day moving average.
The Aggressive Growth Portfolio owns a full position in ORCL . The stock is currently on the Aggressive
Growth Buy List; the lower boundary of its Sell
Half Range
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