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Seven characteristics of the rich and famous: A blueprint to uber-wealth

Those with aspirations of unfettered wealth look for clues everywhere. From top schools to unique talents, they build profiles of what it takes to become absurdly wealthy ... as though the process can be blueprinted. Well, if you're looking for answers, the Forbes 400 list is a great place to start. If anyone has mastered the art of making money, it's this collection of billionaires. They have the answers, and you are ready to learn.

A look at the lives of the Forbes 400 implies that the most important attribute is the ability to sift through ambiguity. Contradictions abound, meaning that shades of gray hold the answer to your burning desire for riches. Should you go to a great school? Well, yes ... but only if you're going for an MBA and plan to work for a major financial firm. But, you can still go to an Ivy League school if you're not studying finance but join Skull and Bones. Of course, dropping out of Harvard can be a great way to launch a career in the technology field.

It's tricky. There are no easy answers. But, the road to billions is littered with the corpses of aspiring magnates who thought it wouldn't be difficult. So, don't just read the seven attributes after the jump. Understand them. Read them twice. Then, your future financial situation will be assured.

Or, you can just do one of those chain e-mails and wish for wealth.

[Thanks, Forbes and MSNBC]

Continue reading Seven characteristics of the rich and famous: A blueprint to uber-wealth

With the recession taking its toll, Oracle moves into the cloud?

Even the mighty Oracle (NASDAQ: ORCL) can't seem to withstand the global recession, as IT budgets continue to tighten. At the same time, the strong U.S. dollar has taken a toll.

In fact, Oracle's fiscal fourth quarter saw the first decline in revenues since 2002. That is, revenues fell 5.2% to $6.86 billion. Profits also decreased 7.2% to $1.89 billion.

Another problem: license revenues. These fell by about 13% for the quarter. Again, this is an indication that it's tough to get new business.

Continue reading With the recession taking its toll, Oracle moves into the cloud?

Oracle's Ellison: We may make netbooks soon

Oracle Corp. (NASDAQ: ORCL) said something interesting this week: It may join the ranks of PC makers and offer a netbook PC for sale. Why on earth Oracle would want to get into the extremely popular but low-margin netbook PC hardware business is an interesting mystery, but that's exactly what Oracle chief Larry Ellison indicated.

Oracle, which is in the midst of closing its deal to buy Sun Microsystems, said that Sun's Java technology could be used to run a future Oracle-branded netbook PC. Ellison quipped that "I don't see why some of those devices shouldn't come from Sun . . . there will be computers that are fundamentally based on Java."

Continue reading Oracle's Ellison: We may make netbooks soon

Closing Bell: When reality sets in... (JAVA, ORCL, NTAP, BAC, C, PEP)

This was one of those "sell-the-news" trading days that many of the bears were expecting over the last two weeks. In fact, some bears might finally feel vindicated after weeks of being slapped silly. The European markets started lower and the U.S. followed suit. Credit concerns for banks getting worse ahead and what Uncle Sam will do with his stakes in the banks was just a part of it.

Here are today's unofficial closing bell levels:

Dow 7,841.73 -289.60 (-3.56%)
S&P 500 832.39 -37.21 (-4.28%)
Nasdaq 1,608.21 -64.86 (-3.88%)

Top 10 Analyst Calls

Continue reading Closing Bell: When reality sets in... (JAVA, ORCL, NTAP, BAC, C, PEP)

Oracle comes up light

Shares of Oracle Corp. (NASDAQ: ORCL) fell in after-hours trading after the software maker reported inline earnings, indicating a slowdown in technology spending by businesses.

Net income rose 30% to $1.3 billion, or 30 cents per share, on revenue of $5.3 billion, according to the earnings press release. Analysts were expecting profit of 30 cents on revenue of $5.42 billion, according to Thomson Financial.

Until now, Wall Street was in love with the stock, sending the shares up about 13% this year at a time when many big-cap tech stocks have done poorly. This is the type of company that has conditioned investors to expect continued outperformance.

In fact, Bloomberg News went so far as to note: "Oracle Chief Executive Officer Larry Ellison, who led the software maker on a $33.5 billion spending spree, did more than add 39 businesses and 20,000 customers. He bought armor against a U.S. economic slump."

Guess that armor has some kinks in it now.

Tonight's conference call should be lively. The stock will fall even further if the company's guidance isn't extraordinarily optimistic.

NetSuite: Recession might not be a bad thing

The folks at NetSuite (NYSE: N) certainly have good timing. They were able to launch their IPO late last year – before the equity markets came undone.

Now, the company has released its first quarterly report as a public company. Q4 revenues spiked 57% to $31.7 million and there was a net loss of $3.3 million, which was much better than the loss of $8.1 million in the same period a year ago.

NetSuite, which is majority-owned by Oracle's (NASDAQ: ORCL) Larry Ellison, is a provider of web-based business applications. Think of it as filling the gap between Intuit's (NASDAQ: INTU) QuickBooks and mega applications from SAP (NYSE: SAP) and Oracle.

And, it's a big market opportunity. In fact, NetSuite often says that it is focused on the "Fortune Five Million" companies.

But, as is the case with other web-based providers, there is some uncertainty in the marketplace. While NetSuite isn't seeing a fall-off, the company is still providing in-line guidance – with a full-year revenue projection of $153 million to $156 million, which is a 44% increase (on the top end).

Keep in mind that NetSuite had to deal with the severe tech recession of 2001-2002 and was able to actually thrive in the environment. A key reason is that companies were looking for cost-effective solutions.

In today's trading, NetSuite's stock is down 5.62% to $22.17.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

Oracle buys BEA Systems for $8.5 billion

Oracle Corp. (NASDAQ: ORCL) will be buying competitor BEA Systems, Inc. (NASDAQ: BEAS) in a deal worth about $7.85 billion, both companies announced early this morning. BEA makes software that connects Oracle's market-leading database software to the vast array of business software applications that millions of workers use daily.

Although there had been some dispute over the value of BEA in recent months, the $8.5 billion deal does give a 24% share premium to Tuesday's closing price of $15.58 for BEA common shares. This morning, however, BEAS is up more than 18% at $18.45 on the takeover news. Activist investor Carl Icahn even blessed the merger by saying he would vote his 13% BEA stake in favor of the combination: "This transaction is an excellent example of the great results that can be achieved for all constituencies when the shareholder activist is able to work cooperatively with management."

Oracle, the world's second largest software maker after Microsoft Corp. (NASDAQ: MSFT), was interested in BEA back in October of last year, but the company rejected its offer of $17 per share (total value: $6.7 billion). The latest offer from Oracle, which is pegged at $19.375 per share, won unanimous approval from BEA's board of directors. Oracle's continuation of billion-dollar acquisitions of late have added some pretty decent heft to its offerings. The company has acquired competitors PeopleSoft, Siebel Systems and Hyperion Solutions -- and now, BEA.

[The author holds a long position in MSFT]

Starbucks: Now it gets interesting -- Could Schultz make a difference?

With the announcement that Starbucks (NASDAQ: SBUX) chairman and founder Howard Schultz is re-assuming the role of chief executive officer, it gets real interesting. Why?

Founders know the vision and the dream better than anyone; after all, it was their idea. The landscape is littered with founders returning to the CEO role. Larry Ellison has done so with Oracle (NASDAQ: ORCL), Michael Dell has come back to Dell (NASDAQ: DELL), and perhaps the most successful, Steve Jobs of Apple (NASDAQ: AAPL). The founder of an enterprise typically has the passion and the vision to where the enterprise should be. The problem with founders is that they normally are not great managers.

Steve Jobs of Apple had to actually get fired from Apple, found Pixar, develop it and eventually sell it to Disney (NYSE: DIS) before he learned the necessary lessons to bring Apple back. His record of accomplishment will be the subject of MBA course studies, and maybe even psychology books!

With Dell, the jury is out, both on him and the company. I don't like Dell, the company, and could not understand Wall Street's enthusiasm in 2007. Dell's business is characterized by depressing margins -- never a good sign -- and Hewlett Packard (NYSE: HPQ) controlling both margins and the market share. Dell may never come back, at least not the way it is structured now.

Ellison at Oracle has acquired growth through depressed, but smart acquisitions, to build the applications business around its core database business.

And Howard Schultz at Starbucks?

Continue reading Starbucks: Now it gets interesting -- Could Schultz make a difference?

NetSuite: Santa comes early for Larry Ellison

Over the past couple years, I've met with Zach Nelson several times. He's a veteran of the software world and is currently the CEO of NetSuite (which starts trading tomorrow as NYSE: N). The company develops on-demand software for the small-to-mid size business (SMB) segment, essentially allowing for sophisticated enterprise resource planning (ERP) functionality at affordable pricing.

Despite the success of NetSuite, it has been in the shadows of mega player, Salesforce.com (NYSE: CRM).

But this may change; that is, today NetSuite had a successful IPO, raising $161 million. At first, the company had a $13-$16 price range on the offering, but was able to price the deal at $26. NetSuite used an online Dutch auction system for its IPO, which allows any investor to participate.

The ERP market for large businesses is mostly dominated by SAP (NYSE: SAP) and Oracle (Nasdaq: ORCL). However, the SMB market is fairly under penetrated (Nelson calls it the "Fortune Five Million").


Continue reading NetSuite: Santa comes early for Larry Ellison

Entrepreneur's Journal: Startup advice from Oracle's Larry Ellison

It was a tough time in 1977. There was inflation, unemployment and political turmoil because of Watergate.

But such things didn't mean much for a group of programmers -- Bob Miner, Ed Oates, and Larry Ellison. They started a database software company called Structured Development Laboratories. Of course, the company would eventually be renamed Oracle Corp. (NASDAQ: ORCL) and grow into a multi-billion dollar powerhouse.

Well, this week at the popular Oracle OpenWorld conference, Larry devoted his keynote to the early days of the company (the picture on the upper right is the original 900-square foot office location).

Continue reading Entrepreneur's Journal: Startup advice from Oracle's Larry Ellison

Adobe gets buzzed-up for on-demand

Traditional software companies are scrambling to deal with the Internet. Take Adobe Systems Incorporated (NASDAQ: ADBE), which is ramping its on-demand offerings.

In fact, today the company announced that it has snapped up Virtual Ubiquity. The company operates Buzzword, which is a web-based word processor and collaboration platform. The financial details were not disclosed.

It certainly helped that Buzzword has adopted a variety of Adobe technologies, such as Flash and Flex. Interestingly enough, Adobe invested in the firm a year ago.

So is Adobe trying to take on Microsoft Corporation (NASDAQ: MSFT)'s Office? Actually, I don't think so. Hey, if anything, Adobe understands Microsoft very well – and also realizes that there is still a lot of opportunity in the graphics/design market. Instead, I think Adobe is trying to use new technologies to improve its core strengths.

I had a chance to talk to Frank Zamani, who is the CEO of Caspio (which operates an on-demand web application platform). According to him:

"As Oracle Corporation (Nasdaq: ORCL)'s Larry Ellison says, in the future there will be only a handful of very large software companies. Adobe is certainly going to be one of them. According to Triple Tree, the SaaS (software as a service) market by 2009 will be 40% of the software market. The question is whether Adobe is going to leverage its fantastic brand name to expand into SaaS. This acquisition demonstrates that they are thinking in that direction. It will be interesting to watch if they will stick to document management or embark on a broader SaaS strategy."

Also, if you want to check out other acquisition deals, click here.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements.

NetSuite wants a sweet IPO

Not that long ago, on-demand software was considered a niche. Would real businesses use the Internet for their software needs? As seen with the stellar success of salesforce.com, inc. (NYSE: CRM), on-demand appears to be the next-big-thing and today another big player in the space filed to go public: NetSuite.

Founded back in 1998, NetSuite has built a comprehensive offering of on-demand applications for small and medium-sized businesses – such as ERP (enterprise resource planning), CRM (customer relationship management), and e-commerce. It means competing against rivals like Microsoft Corporation (Nasdaq: MSFT) and SAP AG (ADR) (NYSE: SAP).

The software is sold on a subscription basis and is fairly easy to use. Its getting traction. From 2004 to 2006, revenues increased from $17.7 million to $67.2 million. I suspect the growth will continue its ramp.

Interestingly enough, the biggest shareholder is Larry Ellison, who is the cofounder and CEO of mighty Oracle Corporation (Nasdaq: ORCL).

The underwriters include Credit Suisse Group (ADR) (NYSE: CS) and W.R. Hambrecht. You can find the prospectus at the SEC website. And if you want to see more recent IPOs, you can click here.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Oracle's numbers too good to pass up

Cross-selling opportunities from vertical application acquisitions should drive Oracle Corporation's (NASDAQ: ORCL) stock higher.

Specifically, in last night's earnings conference call, management discussed how its business relationship with Wal-Mart Stores Inc (NYSE: WMT) has expanded. Prior to making an acquisition in the retail applications space, Oracle, believe it or not, did no business with the retailing giant. Today, however, the software company is cross-selling its broad product offerings to Wal-Mart. Management suggested the same is true for other verticals such as communications and healthcare, where Oracle has recently completed acquisitions.

Also impressive was Oracle's margin expansion, as operating leverage kicks in from over 30 acquisitions that are being integrated. Ellison expects acquisitions to continue, with five having been announced the past quarter, he sees no reason to slowdown.

Guidance was also strong with new software license revenue expected to be up 20 to 30% year-over-year. Total revenue is forecast to grow 19 to 21% on a GAAP basis.

The Oracle cash flow and acquisition machine is surging forward and it appears its stock will do the same. Somehow Oracle has put together a very unique ability to successfully integrate a massive number of acquisition unlike any other company has done before.

Oracle Q4 2007 earnings preview: A bargain or a sucker's bet?

Since its upside surprise when it reported last quarter, enterprise software giant Oracle Corp. (NASDAQ: ORCL) has continued with its philosophy of growth through acquisition by acquiring LODESTAR Corp., which supplies software solutions to utilities, as well as product lifecycle management leader Agile Software Corp. (NASDAQ: AGIL). And the share price has been trending upward the past three months.

But it hasn't all been peaches and cream. Billionaire George Soros recently shifted his focus away from Oracle and some other tech stocks in favor of Microsoft Corp. (NASDAQ: MSFT). BloggingStocks contributor Georges Yared thinks Oracle's glory days, in terms of growth, may be behind it, and even that it may be a stock for suckers.

Oracle's rivalry with Germany-based SAP AG (NYSE: SAP) continues, of course, not only in the courtroom -- Oracle recently added copyright infringement to its theft charges against SAP -- but also into small and medium-sized companies, where some early indicators suggest Oracle may have the edge. Oddly enough, there has been speculation that Oracle may try to acquire SAP, unlikely though that may be, after it was rumored that Oracle has been purchasing SAP stock.

But Oracle remains part of the Fortune 500, and BloggingStocks contributor Brent Archer thinks the stock might be a bargain. One analyst upgraded Oracle just last week. According to Thomson Financial, Wall Street consensus rates ORCL a buy (12 strong buy, 11 buy, 12 hold). When Oracle reports earnings on June 26, analysts expect earnings per share for this quarter to come in at 35 cents, compared to 25 cents actual from last quarter, and 25 cents a year ago. Its market cap is $96.8 billion, and its P/E ratio is 18.95 (the industry average is 23.49). The consensus price target is $21.25; the 52-week low was $13.77 in July of 2006 and $19.95 last week. It closed Tuesday at $19.88.

Oracle becoming stronger and stronger

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.

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