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Oracle – Sell

Jan 24, 2016 @ 8:00pm $34.80

 

Oracle does not build shareholder wealth and it is grossly overvalued.

 

  1. Oracle’s revenues have grown by only 9% over the past 5 years.
  2. Oracle’s long term debts have grown by over 140%.
  3. 5 years ago Oracle’s debt was $20B and Revs were $34B.
  4. Today, Oracle’s debt is over $46B while their Revs are just $37B.
  5. 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.