A couple days ago I was preaching how Utilities, Services, and Healthcare would be the only sectors I would get long until a Euro-zone resolution occurred… Turns out I was only lying to myself. Last night one of my favorite technology companies, Oracle, reported its first earnings miss in nine years. I was unable to sit ideally by as the stock plummeted into abyss after the market closed, so I made a small purchase, and another this morning. I have confidence that Oracle’s miss was due to a weaker macroeconomic environment. Oracle still has ample competitive advantages and when corporate spending turns around they will eat everyone’s lunch.
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Joined Oct 27, 2011
93 Blog Posts
When do you see corporate spending turning around? How long are you planning on holding ORCL?
Not sure exactly when corporations will start spending like drunken sailors again. Oracle is fairly exposed to Europe, so if that mess was resolved, things would look rosy.
As of right now ORCL is a trade on the basis that is technically oversold. When it bounces I will book at least half as profit. There is a chance the other half will be held up until next quarter, where I will likely dump half pre-earnings and hold the remainder through…
These our my thoughts tonight, tomorrow they could be dramatically different…
I can’t edit typos on my own comments… bummer.
How about VMW?
VMware & Oracle are two different animals. ORCL is 4X bigger, and is priced cheap on a valuation basis.
VMW has an attractive chart at the moment because it is retesting a double bottom from back in August and October. It is also technically oversold. Looks like a good set up for a long trade. However the chart does not look attractive long term because it is moving sideways..