Oracle ByYashRohan

Oracle Recommendation Buy at $24.90 Buy at $24.90 Sell at $27.90 Sell at $27.90

Oracle Financial Background A multinational corporation- specializes in deleloping enterprise software products: in particular database management systems A multinational corporation- specializes in deleloping enterprise software products: in particular database management systems Has 101,950 employees Has 101,950 employees Third largest software revenue Third largest software revenue Based in Redwood City California Based in Redwood City California Founded in 1977 by Larry Ellison, still CEO today Founded in 1977 by Larry Ellison, still CEO today

Basic Numbers Current Price: $24.87 Current Price: $24.87 P/E: P/E: Beta: 0.92 Beta: 0.92 Div/yiel: 0.05/0.86 Div/yiel: 0.05/0.86 EPS: 1.15 EPS: 1.15 Mkt cap: B Mkt cap: B

Oracle Reasons to Buy Dominant market position Dominant market position Recent slide leads analysts to believe it will surge Recent slide leads analysts to believe it will surge Just aquired Sun Microsystems Just aquired Sun Microsystems Technology market is recovering from a downturn, is poised to jump (see chart) Technology market is recovering from a downturn, is poised to jump (see chart) Had a $ billion revenue in 2009 Had a $ billion revenue in 2009 Multiple Products: Multiple Products: –Oracle Database –Oracle Fusion Middleware –Oracle applications –Oracle enterprise Manager –Oracle Financials Recently have had a number of high profile acquisitions: expanding Recently have had a number of high profile acquisitions: expanding

Reasons to Buy At $1.58 EPS and $26.8 billion in revenues for fiscal-2010, Oracle’s current year multiples are an implied 14.6-times earnings and 4.3-times revenues. At $1.88 EPS and $35.07 billion in fiscal-2011 revenues, its forward-year multiples are 12.3-times earnings and 3.3-times revenues. At $1.58 EPS and $26.8 billion in revenues for fiscal-2010, Oracle’s current year multiples are an implied 14.6-times earnings and 4.3-times revenues. At $1.88 EPS and $35.07 billion in fiscal-2011 revenues, its forward-year multiples are 12.3-times earnings and 3.3-times revenues. earnings Expected to post $100 billion dollars in 2010 revenue, up from $23 billion in 2009 Expected to post $100 billion dollars in 2010 revenue, up from $23 billion in 2009 Oracle hiked its old $27 target up to $30 Oracle hiked its old $27 target up to $30 Credit Suisse resume coverage with an “Outperform” rating with a $30 price target. Credit Suisse resume coverage with an “Outperform” rating with a $30 price target. Credit Gartner issued a “Strong Positive” alert in Oracle. Gartner issued a “Strong Positive” alert in Oracle.

Competition IBM IBM –Down almost 5% year to date –Price to earnings a little more then ½ of Oracles (12 as opposed to 20 Microsoft: Microsoft: –Facing increased competition from companies like Apple and HP –Currently facing threat from Open Office competition like Lynix and Google