From Bull Market Report NEWS FLASH – PORTFOLIO UPDATE
Sent only to our paid subscribers at 10:45 AM EST
We have been watching Oracle for years and years, owned it for many of them,
took our profits and then got disillusioned when it dropped into the
mid-teens in September of last year. We never got a chance to buy it down
there and it shot to $40 by February, an all-time high. Now that it is back
in the 20's we are not going to miss it this time. We hereby add Oracle to
our Solid Growth Portfolio. We're going to put it away and forget about it.
They are a gorilla and will stay one. Period.
Database is the key to the success of the Internet . Virtually every
software application that requires searching for information requires
database software and in one form or another Oracle has a product to fit
that requirement. Oracle designs, develops, markets and supports computer
software products including database management, application development,
business intelligence and business applications. For the six months ended
11/30/98, revenues rose 28% to $3.8 billion. Net income totaled $470
million or 12% after tax. This is low for Oracle and we look for big
improvement from them in the next six months. For the 3 months ended
2/28/1999, revenues were $2.1 billion with earnings of $290 million. They
have no long term debt and $2 billion in cash.
Of the analysts that follow the stock, 6 have a Buy, 15 have a Moderate Buy
and 9 have a Hold. Add one more of us to the buy list.
The price as we mail this is $26. Our 12-month price target is $36 and if
met, is a 40% increase.
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