Yep, Oracle wants to be part of the FANG stocks and coat-tail the "O" for FANGO. This is not a joke, they are actually serious about this. More to come in Open World. I think they should've used all those energy coming up with "FANGO" in trying to figure out the cloud outage from yesterday.
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That’s right, when giving shares as securities for personal loans can only borrow 50% of market value, when share price goes down have to give additional securities - either more shares or cash. That’s called margin calls. If fail to provide more security the lender sells the shares until they reach the right balance of loan and collateral value. Bad news for LE given that oracle has no future and shares have nowhere to go but down. Share buybacks will continue for as long as oracle has the cash, then comes an ugly CRASH!
Right. True. But they typically require pledges if twice the debt/ credit line and if the stock falls too much they want more stock pledged. See FYI https://www.bloombergquint.com/onweb/2017/09/29/oracle-s-ellison-adds-2-9-billion-to-fortune-on-pledged-shares.amp for his gain when price rose.
Hey I want LE to be happy but not at everyone else's expense.
"LE owns about 30% and has pledged $13.5 billion in stock to secure personal debt/spending. See current proxy statement filed with SEC p 19. That is why people keep mentioning margin calls."
Except that they are not used to pledge margin accounts.
From page 19:
"As of September 17, 2018, Mr. Ellison, Oracle’s founder, Chairman, CTO and largest stockholder,
had pledged 305,000,000 shares of Oracle common stock as collateral to secure certain personal indebtedness. Mr. Ellison’s pledged shares secure personal term loans only; none of his shares are pledged as collateral for margin accounts."
LE owns about 30% and has pledged $13.5 billion in stock to secure personal debt/spending. See current proxy statement filed with SEC p 19. That is why people keep mentioning margin calls.
If we keep buying back our own stock then we just might get so big that it starts s---ing in more and more cash. Eventually it will eventually become blackhole s---ing in every last free cent the company has leaving no money to operate the company.
Seems the stock buybacks could easily get out of control. People may sell while the price is propped up.... then they need more and more money to prop it back up again.
Delusional 3 stooges utterly detached from reality, completely focused on make belief and paying zero attention to reality, customers and products
If we keep buying back our own stock then we just might get so big that it starts s---ing in more and more cash. Eventually it will eventually become blackhole s---ing in every last free cent the company has leaving no money to operate the company.