Excellent and thorough analysis; thanks for your work here. FWIW, I rule out any company where debt exceeds 3x OCF, so I wouldn't have bought the shares to begin with. Another thing I don't like is the lavish SBC that Ellison takes out of the company each year; he's the founder and already a very rich guy, but he doesn't seem to care about how egregious it looks, or the impact it has on dilution.
Thank you, Boise! Indeed, Oracle's financial health is at least questionable. These kinds of (growing) debt levels are a hard sell. And I agree! Ellison is now the second wealthiest person on this planet, and still isn't pleased... doesn't do investor sentiment any good.
Thanks for the writeup!
i get the uneasy feeling that at peak shareprice and debt, we see weird things like a ceo departure and 80yr old founder exiting\expiring.
'just a coincidence' people would say.
Haha, good point, anon! Red flags all over.
Excellent and thorough analysis; thanks for your work here. FWIW, I rule out any company where debt exceeds 3x OCF, so I wouldn't have bought the shares to begin with. Another thing I don't like is the lavish SBC that Ellison takes out of the company each year; he's the founder and already a very rich guy, but he doesn't seem to care about how egregious it looks, or the impact it has on dilution.
Thank you, Boise! Indeed, Oracle's financial health is at least questionable. These kinds of (growing) debt levels are a hard sell. And I agree! Ellison is now the second wealthiest person on this planet, and still isn't pleased... doesn't do investor sentiment any good.
Great write up - long term holder of ORCL
Thank you, Steve! You must have realized some solid returns. Still a great business.
Nice!
Thank you!