Show less
Saxo TV / 19 June 2014 at 13:50 GMT

Garnry: Oracle results will likely disappoint

Peter Garnry
The technology company Oracle is posting its latest results. Despite a slight increase in last quarter’s profits, its share price fell. So what should investors expect this time round? Saxo’s Peter Garnry warns that the company will disappoint, as low organic growth, witnessed over the last two years, continues.

Garnry says Oracle is a story of two tales. On the one hand, the share price has outperformed the market and is up 50% since last summer. On the other, he says there is a real slowdown in the business. Its underlying growth rate has been negative for several quarters and in the quarters where it has been positive, it has been so by only a few percentage points.

The technology company has been sticking with convention and following its strategy of acquiring other firms to compensate for its low growth rate. There are rumours that it is trying to buy MICRO Systems for USD 5 billion.

But despite this strategy, Peter Garnry doesn’t think this a good short-term bet. “Our quant model has a modest 5 percent return model so it doesn’t sound like much,” he says. He thinks there will therefore be short-term disappointment when results are released later.


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Show latest activity
Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail