Expect at Least 51 Cents Per Share from Oracle

After being down sharply for most of the day yesterday, the stock market rallied back in the afternoon. So far, we’re holding on to those gains this morning. As of now, we’re up slightly.

The big news today is the beginning of the Federal Reserve’s two-day meeting in Washington. With every two-day meeting, Ben Bernanke holds a press conference on the second day. The Fed is widely expected to announce its “operation twist” which involves selling the short-term debt in its portfolio in order to buy longer-term debt. We’ve already seen the 30-year Treasury bond fall to the lowest yields in nearly three years.

On our Buy List, Oracle ($ORCL) will report its fiscal Q1 earnings after the close. Three months ago, the company told us to expect Q1 earnings to range between 45 cents and 48 cents per share. My numbers say that’s way too low. I’m expecting at least 51 cents per share. One month ago, the stock dropped below $25 per share which was very cheap. Since then, Oracle has gradually climbed higher. Today, the shares have been as high as $29.36. I still rate Oracle a strong buy up to $30 per share.

Here’s a chart I did last month looking at Oracle’s valuation.

Posted by on September 20th, 2011 at 10:18 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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