Zacks Analyst Blog Highlights: Oracle Corp., Sun Microsystems, Inc., International Business Machines Corp., Hewlett-Packard and Cisco Systems - Press Releases
For Immediate Release
Chicago, IL – February 16, 2010 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Oracle Corp. (ORCL), Sun Microsystems, Inc. (JAVA), International Business Machines Corp. (IBM), Hewlett-Packard (HPQ) and Cisco Systems (CSCO).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Friday’s Analyst Blog:
Oracle on Acquisition Spree
Oracle Corp. (ORCL) announced the acquisition of Convergin, a leading software provider of real-time service brokering solutions. The acquisition will enable Oracle to step up the deployment of next-generation pre-paid and value-added services in the communications industry besides lowering the total cost.
Convergin's Service Broker platform helps communications service providers manage services for a wide range of networks and application platforms, including pre-paid charging. The company said that Convergin’s products will complement its own Communications' integrated product suite such as Communications Billing and Revenue Management, Oracle Communications Converged Application Server and Oracle Communications service fulfillment applications.
The transaction is expected to close in the first half of 2010. Financial details of the transaction were not disclosed.
Recently, Oracle also announced the acquisition of AmberPoint, a leader in Service-Oriented Architecture (SOA) Management, which is expected to close in the first half of 2010.
AmberPoint’s SOA management products will extend Oracle Fusion Middleware’s SOA capabilities, including Oracle SOA Suite, Oracle SOA Governance and Oracle Enterprise Manager, accelerating the resolution of application performance and business transaction issues. The solutions will help improve performance and reduce IT costs through end-to-end SOA management and Business Transaction Management solutions.
Oracle is very active on the acquisition front and chooses targets that can be integrated within existing or new product lines. From time to time, it also acquires companies with competing technologies with the intention of killing off rival products. This has provided a competitive edge to the company.
Recently, Oracle completed the acquisition of Sun Microsystems, Inc. (JAVA), a provider of enterprise computing systems, software and services for $7.4 billion ($9.50 a share) or $5.6 billion net of Sun's cash and debt.
In our opinion, Oracle will achieve much stronger growth and momentum in fiscal 2011 and beyond due to accretive synergies from the Sun acquisition. Besides, the acquisition will strengthen its competitive position in the middleware business and increase its developer base in enterprise computing.
While Oracle is expected to become the no. 1 player in the database software market with the acquisition of Sun, ahead of International Business Machines Corp. (IBM), we remain concerned about the company’s integration of Sun.
Oracle has grown its business principally through acquisitions, which have been weakening the balance sheet through a high level of goodwill and intangible assets, which totaled $25.7 billion or 47.7% of total assets as of November 2009. Moreover, increased acquisitions limit organic growth and make comparisons difficult. Further, Oracle incurs high restructuring charges related to acquisitions made in the past.
However, acquiring companies at regular intervals will enable Oracle to take out its competitors and compete against larger vendors such as IBM, its biggest database software rival, as well as Hewlett-Packard (HPQ) and Cisco Systems (CSCO).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
