Tomahawk, WI 9/19/2013 (BasicsMedia) – Whenever Oracle Corporation (NYSE:ORCL) is mentioned, what comes to mind is a company which is one of the major providers of computer hardware as well as enterprise software products and services. These products which it develops are designed to help computer servers as well as storage products become more effective in performing their functions. Its business is offered through three segments, namely, hardware systems, software systems and services. The question most would like to be answered is; when is it right to buy ORCL stock?
ORCL Hasn’t Performed Well
If you take a keen look at how this stock has performed in 2013, you are likely to be greatly disappointed. It has dropped down by almost 2% which is not good for a company of ORCL’s stature. Most investors tend to buy stock when it is down. However, this is not the only sign one should look for. There are numerous factors to be considered as well. Some of these factors include what kind of future the company and industry will have to operate in. Secondly, the behavior of hedge funds towards any stock must be used to determine whether it is right to buy.
A number of hedge funds appear to be quite bullish regarding the ORCL stock. They hold a lot of optimism towards this stock going into the future. Most of the hedge funds I’m talking about here have invested more than a billion dollars into ORCL, a sign that they fully trust in the present and future of the company. If this is their long term view or position regarding ORCL, investors should be reassured that the company is in very stable hands and has a great future going forward. Hedge funds provide the best indication regarding ORCL’s stability.
Hedge Funds Increase Their Stake in Oracle
Moreover, the hedge funds which have invested billions of dollars in Oracle have held these positions for quite some time. Better still, new hedge funds are coming in with their billions of dollars which they are prepared to invest into Oracle. Based on this behavior by hedge funds, I would say without delay that this is probably the best time to invest in Oracle stock. I know that many investors often do the reverse of what hedge funds are doing. But this time round, I would advice investors to copy what hedge funds are doing and buy this stock for the long term.
This past Wednesday, ORCL finally released its latest quarterly results. From these results, it is clear that the company succeeded in beating analyst estimates in terms of earnings per share. Its revenues were $8.40 billion, compared to the $8.48 billion it had been expected to raise by analysts. This revenue was better than last years for the same period, representing an increase of around 2.1% in 2013 compared to 2012. As a market leader, this is a good sign from this company and indicates that it is still able to post positive results in a very competitive market.
As I stated earlier, there has never been a better time to buy ORCL stock than now.