Oracle (ORCL) has time and again reiterated its emphasis on profitability. Oracle acquired Sun Microsystems in early 2010 with a view to strengthen its portfolio of products. Sun was a loss-making company at that time, and reported an operating income loss of $2.24 billion for fiscal year ended 2009. This is why Oracle could buy Sun Microsystems at a relatively cheap valuation of $7.4 billion.

However, Oracle seems to have converted the losses incurred by Sun Microsystems to profits. By leveraging Sun's technology, Oracle is trying to come up with a superior product portfolio and maintain an edge over competitors SAP (SAP), Microsoft (MSFT), IBM (IBM) and Hewlett-Packard (HPQ).

Continue reading Oracle: Profitability Is the Focus

Oracle: Profitability Is the Focus originally appeared on BloggingStocks on Sat, 02 Apr 2011 09:20:00 EST. Please see our terms for use of feeds.

The Wall Street Journal reports that the former chief executive of Hewlett-Packard (HPQ), Mark Hurd, is in talks with enterprise software maker Oracle (ORCL) about becoming an executive there. Hurd left HP in early August following allegations of sexual harassment by a former contractor. An investigation failed to find any evidence of sexual misconduct by Hurd.

What position Hurd may take up is unknown; Oracle's founder and CEO, Larry Ellison, will not be stepping down from his position, according to people familiar with the matter. Ellison did criticize HP's board for ousting Hurd, telling the New York Times that the board had failed to act in the best interest of its shareholders, employees and customers.

Continue reading Mark Hurd to Replace Oracle's Larry Ellison?

Mark Hurd to Replace Oracle's Larry Ellison? originally appeared on BloggingStocks on Mon, 06 Sep 2010 11:30:00 EST. Please see our terms for use of feeds.

Continue reading Oracle Completes Sun Merger

Oracle Completes Sun Merger originally appeared on BloggingStocks on Mon, 01 Feb 2010 17:20:00 EST. Please see our terms for use of feeds.

Career Education (CECO) closed at $22.30, selling off 19% in late afternoon trading on Dec. 18 after the Office of Inspector General sent out a negative letter concerning the for-profit education group. CECO January option implied volatility is at 58, above a level of 45 from December 16. April volatility is at 55; above its 26-week average of 43 according to Track Data, suggesting traders purchasing options to hedge price movement.

Three stocks with IV rise on Dec. 18: Sun Microsystems (JAVA) +3%, PowerShares DB US Dollar Index Bullish Fund (UUP) +2%, Walgreen's (NYSE-WAG) +2%, according to IVolatility.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: Career Education Volatility Elevated at 58 on OIG Report originally appeared on BloggingStocks on Mon, 21 Dec 2009 08:00:00 EST. Please see our terms for use of feeds.

Enterprise software giant Oracle Corporation (ORCL), which finally completed the deal to acquire Sun Microsystems, Inc. (JAVA), is scheduled to discuss its financial results for the second quarter of fiscal 2010 in a conference call Thursday, December 17, at 5:00 PM (ET). You can catch the live webcast of the call on the company's website.

The three months that ended in November saw Oracle deny that its proposed acquisition of Sun Micro would reduce competition and detailed its plans for Sun. Analysts surveyed by Thomson Reuters are looking for Oracle to report that earnings for the quarter rose two cents per share from a year ago to $0.36. Revenue is expected to the same as a year ago, or $5.7 billion.

Continue reading Oracle earnings preview: Holding its own as Sun deal closes

Oracle earnings preview: Holding its own as Sun deal closes originally appeared on BloggingStocks on Wed, 16 Dec 2009 18:30:00 EST. Please see our terms for use of feeds.

Continue reading Oracle blinks on Sun deal

Oracle blinks on Sun deal originally appeared on BloggingStocks on Mon, 14 Dec 2009 18:00:00 EST. Please see our terms for use of feeds.

Sun Microsystems( JAVA) closed at $8.15. European antitrust authorities formally objected to Oracle's (ORCL) proposed purchase of JAVA, reports the Wall Street Journal. The move is expected to delay the deal from closing. ORCL announced in April it was paying $9.50 in cash per share for JAVA. JAVA December option implied volatility is at 47, January is at 48, April is at 34, above its 21-week average of 21, according to Track Data, suggesting larger price movement.

American International Group (AIG) closed at $35.50. Moody's sees AIG repaying government loans. AIG December call option implied volatility is at 77, puts are at 85; below its 26-week average of 108, according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: Sun Microsystems volatility elevated on E.U. antitrust objections originally appeared on BloggingStocks on Wed, 11 Nov 2009 08:00:00 EST. Please see our terms for use of feeds.

"Oracle (NASDAQ: ORCL) has fattened itself up by swallowing more than 50 companies in the past five years," says Richard Moroney.

In Dow Theory Forecasts, he suggests, "Oracle has proved itself capable of delivering predictable earnings even during tough times by squeezing higher returns out of its assets, including those inherited via $35 billion worth of acquisitions over the past half-decade."

"While some fear the software giant is choking on its latest meal (Sun Microsystems), the deal makes sense operationally.

Continue reading Oracle (ORCL) foresees bright future with Sun

Oracle (ORCL) foresees bright future with Sun originally appeared on BloggingStocks on Tue, 20 Oct 2009 11:00:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Sudden euphoria, take 18 (C, DNDN, LOW, ORCL, SII)

Closing Bell: Sudden euphoria, take 18 (C, DNDN, LOW, ORCL, SII) originally appeared on BloggingStocks on Tue, 22 Sep 2009 16:00:00 EST. Please see our terms for use of feeds.

Memphis-based package delivery giant FedEx Corp. (NYSE: FDX) is generally seen as an indicator of the state of commerce in the U.S. Last week, not only did the Fed's Beige Book report suggest that the economy had stabilized over the summer, with signs of recovery in some districts, But FedEx also boosted its earnings guidance due to stronger-than-expected volume in its international priority-delivery service. So a question going in to FedEx's fiscal first-quarter report this week is whether the company is still a bellwether.

For the three months that ended in August, when FedEx opened distribution hubs in Chicago and Toledo and declared a quarterly dividend, analysts surveyed by Thomson Reuters are looking for it to report that earnings fell 60.2% from a year ago to $0.49 per share. That's also down 23.4% from the previous quarter, as well as less than the recently updated outlook. First quarter revenue is expected to be down 18.3% from a year ago to $8.2 billion.

Continue reading The week in preview: Is FedEx still a bellwether?

The week in preview: Is FedEx still a bellwether? originally appeared on BloggingStocks on Sun, 13 Sep 2009 12:30:00 EST. Please see our terms for use of feeds.

This week brings a small flurry of end-of-the-calendar-quarter earnings reports. And for the most part, the expectations of the analysts surveyed by Thomson Reuters aren't very high. Companies expected to report declining earnings in the most recently concluded quarter include America's Car-Mart Inc. (NASDAQ: CRMT), Bed Bath & Beyond Inc. (NASDAQ: BBBY), ConAgra Foods Inc. (NYSE: CAG), Jabil Circuit Inc. (NYSE: JBL), Jackson Hewitt Tax Service Inc. (NYSE: JTX), Monsanto Co. (NYSE: MON), and Sonic Corp. (NASDAQ: SONC).

Continue reading The week in preview: End-of-quarter earnings expectations: Nike, Oracle, Walgreen ...

The week in preview: End-of-quarter earnings expectations: Nike, Oracle, Walgreen ... originally appeared on BloggingStocks on Sun, 21 Jun 2009 12:30:00 EST. Please see our terms for use of feeds.

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

Oracle's Ellison: We may make netbooks soon originally appeared on BloggingStocks on Thu, 04 Jun 2009 08:20:00 EST. Please see our terms for use of feeds.

Sun Microsystems (NASDAQ: JAVA) will be acquired by Oracle (NASDAQ: ORCL) for $9.50. JAVA May call option implied volatility of 118 was above its 26-week average of 89, according to Track Data, suggesting larger price movement.

ORCL is recently down 80 cents to $18.20 in pre-open trading. ORCL April option implied volatility of 49 is near its 26-week average of 52, according to Track Data, suggesting non-directional movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Options Update: Sun Microsystems May volatility up into Oracle purchase originally appeared on BloggingStocks on Mon, 20 Apr 2009 08:08:00 EST. Please see our terms for use of feeds.

It seemed like a done deal. But in the high-stakes M&A game, things can easily fall to pieces.

Just look at IBM (NYSE: IBM). Over the weekend, the firm withdrew its $7 billion bid for Sun Microsystems (NASDAQ: JAVA). It's yet another heart-breaker for beleaguered Sun shareholders.

Actually, according to the Wall Street Journal [a paid publication], it looks like IBM was the only company interested in a deal. So, even though Sun had little negotiating leverage, it acted as though it had a lot - that is, by holding out for a higher valuation and firmer deal protections (such as "change of control" clauses that provided Sun execs with lush payouts). Well, I guess IBM didn't need Sun that badly or if anything, was certainly willing to play hardball.

Continue reading IBM takes the nuclear option on the Sun deal

IBM takes the nuclear option on the Sun deal originally appeared on BloggingStocks on Mon, 06 Apr 2009 11:10:00 EST. Please see our terms for use of feeds.

Continue reading Microsoft's Ballmer slams IBM's potential purchase of Sun Microsystems

Microsoft's Ballmer slams IBM's potential purchase of Sun Microsystems originally appeared on BloggingStocks on Fri, 20 Mar 2009 14:20:00 EST. Please see our terms for use of feeds.

Hewlett-Packard, Inc. (NYSE: HPQ) has been on a roll lately. The company has basically battered Dell, Inc. (NASDAQ: DELL) in the last two years as it increased its PC marketshare in the consumer and retail arena.

Now it has set its sights on IBM Corp. (NYSE: IBM), as it tries to become the largest computer service and consulting company in the world. It's already the largest by sales, topping $100 billion annually.

Continue reading Hewlett-Packard to face more pressure if IBM buys Sun Microsystems

Hewlett-Packard to face more pressure if IBM buys Sun Microsystems originally appeared on BloggingStocks on Thu, 19 Mar 2009 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Fed becomes buyer of, well, everything (JAVA, IBM, GE, AIG, ADBE, FAS)

Closing Bell: Fed becomes buyer of, well, everything (JAVA, IBM, GE, AIG, ADBE, FAS) originally appeared on BloggingStocks on Wed, 18 Mar 2009 16:00:00 EST. Please see our terms for use of feeds.

"If you are looking for maximum rebound potential, you have to go lower down on the quality spectrum; it is typically the lower quality and lower priced stocks that will have the largest gains when the market rebounds," says turnaround expert George Putnam.

In his industry-leading service focused on distressed companies, The Turnround Letter, he looks at a package of 10 stocks recently trading below $5 per share while also offering "bundles of cash."

Here's his review:

Continue reading Ten cash-rich, low-priced turnaround stocks

Ten cash-rich, low-priced turnaround stocks originally appeared on BloggingStocks on Wed, 18 Feb 2009 14:00:00 EST. Please see our terms for use of feeds.

On Thursday, government statistics announced that 516,000 Americans filed for unemployment in the first week of November. Today, 16,000 more workers from two companies joined what is likely to be a daily list that strikes fear into the hearts of people across the country. And why not? After eight years of declining inflation-adjusted wages, their reward for hanging on is a heightened risk of losing those jobs altogether and competing with more people for fewer jobs in a receding economy.

The two companies announcing big layoffs: a big bank and a leading tech company that sells to banks. According to reports, Citigroup (NYSE: C) may lay off 10,000 employees -- adding to the 23,000 it has already cut in the last year. Sun Microsystems (NYSE: JAVA) announced it will can 6,000 people -- 18% of its work force --- citing the need to "align its cost model with the global economic climate."

Is this the bottom? I seriously doubt it. The unemployment rate could get up to 8.5%, and maybe as high as its post-Depression high of 10.7%, up from its current 6.5%. At least that's what Nobel Prize winning economist and New York Times op-editorialist Paul Krugman expects. Needless to say, in an economy which depends on consumers for 70% of its growth, this is not good news since it divides the country into two categories -- those who lose their jobs and those who fear losing them.

And both groups are likely to spend less.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College. His eighth book, You Can't Order Change: Lessons From Jim McNerney's Turnaround at Boeing, will be published by Portfolio on December 26, 2008. He owns Citi shares and has no financial interest in Sun securities.

A black Friday for 16,000 workers as Citi and Sun plan massive layoffs originally appeared on BloggingStocks on Fri, 14 Nov 2008 09:45:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Alcatel-Lucent (NYSE: ALU) reported a narrower Q3 net loss and reaffirmed its outlook.
• Barclays (NYSE: BCS) earnings and dividend prospects resulted in an analyst's downgrade.
• Burger King Holdings Inc. (NYSE: BKC) posted its 19th straight quarter of positive growth.
• Choice Hotels International Inc. (NYSE: CHH) better-than-expected Q3 report led to an upgrade.
• Comcast Corp. (NASDAQ: CMCSA) reported strong Q3 numbers and maintained its revenue outlook.
• DreamWorks Animation SKG Inc. (NYSE: DWA) better-than-expected Q3 results driven by Kung Fu Panda.
• Exxon Mobil Corp. (NYSE: XOM) reported another record profit in Q3 driven by record high fuel prices.
• Garmin Ltd. (NASDAQ: GRMN) reported a better-than-expected Q3 profit and offered guidance.
• Hercules Inc. (NYSE: HPC) posted lower Q3 earnings and anounced [regulatory] approval of its buyout.
• Janus Capital Group Inc. (NYSE: JNS) weaker-than-expected results led to an analyst's downgrade.
• Legg Mason Inc. (NYSE: LM) swung to a smaller-than-expected Q2 net loss and shares soared.
• Motorola Inc. (NYSE: MOT) dismal Q3 results managed to beat low earnings expectations.
• Office Depot (NYSE: ODP) Q3 results included lower revenue and a net loss due to economic conditions.
• Qwest Communications International Inc. (NYSE: Q) unimpressive Q3 numbers fell short of estimates.
• Sun Microsystems (NASDAQ: JAVA) swung to a greater-than-expected net loss due in part to competition.
• Texas Roadhouse Inc. (NASDAQ: TXRH) missed Q3 estimates and warned of flat full-year earnings.
• Valero Energy Corp. (NYSE: VLO) strong Q3 results included a gain from a sale of a refinery.
• Visa Inc. (NYSE: V) beat Q4 earnings expectations after adjustment for litigation-related charges.
• Whirlpool Corp. (NYSE: WHR) fell short of revenue estimates and announced job cuts.

Continue reading Earnings highlights: Exxon, Motorola, Barclays, Burger King, Comcast, Visa, and others

Earnings highlights: Exxon, Motorola, Barclays, Burger King, Comcast, Visa, and others originally appeared on BloggingStocks on Sat, 01 Nov 2008 09:40:00 EST. Please see our terms for use of feeds.