Oracle is set to report earnings after the close tonight. Oracle trades at less than ten times forward estimates once one nets out the cash on their balance sheet. This is amazing for a company that has a virtual monopoly in databases. Databases are likely to be needed in the future.
I am very tempted to buy Oracle but there are two things that are holding me back. The first is that I have a lot of exposure to the software space via BMC and CA. The second is that Oracle is unclear about their capital allocation plans. I like to know what companies I own plan to do with their money. I am somewhat comforted by the fact that Larry Ellison has been a good allocator of capital. I am very seriously debating whether to make a purchase.