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Take Your Position: Oracle

Wednesday, 24 Mar 2010 | 5:51 PM ET

With Oracle reporting earnings on Thursday, how should you trade this stock?

Shares of Oracle hit a nine-year high last week, in part on optimism over the recovery in corporate technology spending.

"We're hearing that pipelines at Oracle are building," says J.P. Morgan analyst John DiFucci. He is one of several analysts who said that industry contacts have told them Oracle's business was brisk during the quarter.

But there is a wildcard in the mix.

And that wild card is the performance of high-end computer server maker Sun Microsystems, a $7.5 billion acquisition that closed about five weeks before the end of the quarter.

The Sun deal thrusts Oracle -- which was co-founded by Ellison more than 30 years ago as a maker of a database for the U.S. Central Intelligence Agency -- into the hardware market for the first time. It pits Oracle into direct competition with IBM , Hewlett-Packard and Dell .

What’s the trade?

I think Oracle's numbers to be outstanding, says Pete Najarian. But the stocks' reaction may be small.


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Trader disclosure: On March 24th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC) (MSFT), (NUE), (BTU); Najarian Owns (BAC) Calls; Najarian Owns (C) Calls; Najarian Owns (CAT) Calls; Najarian Owns (DVN) Calls; Najarian Owns (F) Calls; Najarian Owns (GE) Calls; Najarian Owns (INTC) Calls; Najarian Owns (MCD) Call Spread; Najarian Owns (MOS) Calls; Najarian Owns (RHT) Call Spread; Najarian Owns (YHOO) Call Spread; Terranova Is Short Crude Oil May Futures; Terranova Is Short (CAL), (UAUA), (GS); Terranova Owns (QCOM), (APA), (AMSC); Terranova Owns (GLD) April Puts; Terranova Owns (GS) Puts; Funds Managed By Dennis Gartman Are Short Euro; Stutland Equities Is A Market Maker In VIX And SPX Options; Stutland Owns (TXN)

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Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
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For Brian Kelly:
Kanundrum Capital Owns (BX)
Kanundrum Capital Owns (EVR)
Kanundrum Capital is Short (EURUSD)


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