GO
Loading...

Tim Seymour: Oracle Sell-Off Presents Opportunity

Thursday, 23 Jun 2011 | 5:24 PM ET

Shares of Oracle dropped as much as 6% in the after market with the company spooking investors after it said revenue from computer hardware dropped.

Looking at the numbers, the hardware division - which it acquired with its purchase of Sun Microsystems - dropped 6 percent to $1.2 billion.

However Fast trader Tim Seymour thinks the Street is looking at the wrong part of Oracle’s business. “Software is their bread and butter,” he reminds, Oracle is the nation’s number 3 software company.

In fact, Oracle’s results showed its software sales rose 19 percent from a year earlier to $3.7 billion. That beat its own forecasts of 4 percent to 14 percent growth.

Tim Seymour says “I think the weakness is an opportunity. Buy the dip. I think the numbers are fine.”

Looking at the results a little more closely, Oracle reported profit, excluding items, of 75 cents per share for the quarter ended May 31. That beat Wall Street estimates of 71 cents per share by 5.6 percent, according to Thomson Reuters I/B/E/S. On average it has exceeded profit estimates by 10 percent over the past six quarters.

Trader Joe Terranova is a little more cautious of this stock. He wonders if the numbers are saying that Oracle is spending too much time in their battle with Hewlett Packard.

And he reminds that traditionally in the fourth quarter they usually beat by a huge margin. This time they just managed just to beat – and the next quarter is generally weaker.

If you’re looking to game the stock you might want to shoot against $31.14. “That’s the 200-day,” says Terranova. “That’s a level it hasn’t violated since September.

Word on the Street
A recap of the day on Wall Street, with the Fast Money traders.




______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


On June 23, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Jim Iuorio owns (BMY) calls; Jim Iurio is short (BMY) puts; Finerman Owns (AAPL); Finerman owns (BAC); Finerman owns (NM); Finerman owns (TGT); Pete Najarian is long (AAPL); Pete Najarian is long (C); Pete Najarian is long (F) bonds; Pete Najarian is long (MRVL); Terranova Owns (VRTS); Terranova Owns (IBM); Terranova Owns (FCX); Terranova Owns (CVI); Terranova Owns (F); Terranova Owns (AAPL); Terranova Owns (CAT); Terranova Owns (BX); Terranova Owns (HPQ); Terranova Owns (MA); Terranova Owns (PEP); Terranova Owns (MCD); Terranova Owns (JWN); Terranova Owns (TM); Terranova Owns (LULU); Terranova Owns (WFM); Terranova Owns (DAR); Terranova Owns (BJ); Terranova Owns (XOM); Terranova Is Short (DELL)

For Mike Khouw
Cantor Fitzgerald & Co. Is A Market Maker In (AAPL)
Cantor Fitzgerald & Co. Is A Market Maker In (AMD)
Cantor Fitzgerald & Co. Is A Market Maker In (BAC)
Cantor Fitzgerald & Co. Is A Market Maker In (CSCO)
Cantor Fitzgerald & Co. Is A Market Maker In (C)
Cantor Fitzgerald & Co. Is A Market Maker In (XLF)
Cantor Fitzgerald & Co. Is A Market Maker In (GS)
Cantor Fitzgerald & Co. Is A Market Maker In (GOOG)
Cantor Fitzgerald & Co. Is A Market Maker In (IBM)
Cantor Fitzgerald & Co. Is A Market Maker In (INTC)
Cantor Fitzgerald & Co. Is A Market Maker In (LNKD)
Cantor Fitzgerald & Co. Is A Market Maker In (XLB)
Cantor Fitzgerald & Co. Is A Market Maker In (MS)
Cantor Fitzgerald & Co. Is A Market Maker In (NM)
Cantor Fitzgerald & Co. Is A Market Maker In (P)
Cantor Fitzgerald & Co. Is A Market Maker In (RIMM)
Cantor Fitzgerald & Co. Is A Market Maker In (WFC)

Carter Worth
** No Disclosures

For Karen Finerman
Finerman's Firm Owns (AAPL)
Finerman's Firm Owns (BAC) Leap
Finerman's Firm Is Short (IWM)
Finerman's Firm Is Short (MDY)
Finerman's Firm Is Short (SPY)
Finerman's Firm Is Long S&P 500 Puts
Finerman's Firm Is Long Russell 2000 Puts

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LHO)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of Sun Pharmaceutical Industries Ltd.
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK & URL PLC

CNBC.com with wires.

  Price   Change %Change
ORCL
---

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report