Nemura downdrafts oracle for the share buybacks - $75 Bn since 2012, completely unsustainable for oracle to spend $10bn per quarter. Stock will go down as cash declines and debt goes up, while revenues and profits go to Hell in a hand basket. Oracle had no future !
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Desperately throwing all the cash they can muster on the stock market to avoid LE getting those pesky margin calls on all the oracle stock held by banks as collateral against st his personal loans loans. The sword of Damocles! Having fun yet LE?
The articles and analyst downgrade are important because they point out underinvestment in R&D and huge amount of cumulative buy back. Target price $42? Panic in the exec suite and layoffs.
https://www.barrons.com/articles/oracle-cant-keep-up-its-current-buyback-pace-analyst-says-51552321834
If you compare oracle’s quarterly revenues (incl cloud fraud revenues) to quarterly share buybacks, you will see that lately oracle has spent more on share buybacks than it’s generated in revenues. Wow! That a sure way to go deep into debt and out of business. Talk about desperation. Oracle is liquidating; they just haven’t told shareholders that’s what they’re doing.
To date oracle has paid for buybacks with cash on hand, but the cash and cash flow are not enough to continue buying back $10 Bn each quarter, oracle can stop the buybacks or take on best to fund them. Namura thinks they will take on debt b/c they cannot stop the buybacks b/c it would show how poorly oracle is performing - no revenue and profit growth, in fact declining profits. Thus oracle will take on debt. It’s like a sinking ship taking on more and more water till it rests on the bottom of the ocean. RIP!
Are buybacks done through saved profits or through new debt?
That explains why O didn't ride today's rally's coattails