Jan 24, 2016 @ 8:00pm $34.80
Oracle does not build shareholder wealth and it is grossly overvalued.
- Oracle’s revenues have grown by only 9% over the past 5 years.
- Oracle’s long term debts have grown by over 140%.
- 5 years ago Oracle’s debt was $20B and Revs were $34B.
- Today, Oracle’s debt is over $46B while their Revs are just $37B.
- Oracle’s market cap is $150 billion with only $6B in tangible book value.
Oracle’s balance sheet is deteriorating. Oracle’s risks are growing. Oracle’s share price is at risk of a major decline.
Do the above facts make you wonder why and how a company with such poor shareholder value and poor prospects for growth could get so overpriced? There are many other large cap, so-called “Blue-Chip” stocks that are very overpriced and at risk of a major decline. We believe that the US market is very risky and may fall a great deal.