Oracle becoming stronger and stronger

Posted Mar 21st 2007 8:30AM by Eric Buscemi
Filed under: Earnings Reports, Oracle Corp (ORCL), Bargain Stocks

Oracle Corporation (NASDAQ: ORCL) reported blow-out results once again. If you own Oracle, stay with it; if you do not own Oracle, I'd buy it.

We have been blogging for most of 2006 that Oracle's acquisition strategy is working and would be proven out by reporting great results -- which has come true. We first blogged about buying the stock at $14; it is now at $18, up close to 30%.

Ellison said during last night's conference call that Oracle is growing six times faster than SAP's new licenses. Ellison also began pounding the drum on how it is beating BEA in the middleware market.

Ellison's strategy of providing ERP, CRM and industry specific software is working big time.

Oracle is selling for 18x for FY2007 earnings and 15.4X FY2008 earnings, so Oracle is still a cheap stock. Stay with this stock, there is much more upside coming from earnings growth and potential for P/E expansion.

Tags: earnings, larry ellison, LarryEllison, oracle, orcl