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Post Earnings, Don’t Run Into Oracle at $31: Pro Trader

“Oracle isn’t terribly cheap anymore. And around $31, (where the stock traded in the after market) the stock runs into resistance. At a time when tech has a lot of names that offer a lot of value – I wouldn't run into Oracle," says Fast Money trader Tim Seymour.

Post earnings, Steve Grasso says much the same. “I’d rather go into Microsoft ,” he adds, "or even Intel."

Those were our pros gut reactions after Oracle shares popped 3% on better than expected results.

The bullish action was largely triggered by optimism about sales, after the company said new software sales rose 7 percent from a year earlier to $2.4 billion, which was at the high end of Oracle's forecast. Investors pay close attention to new software sales because they generate high-margins.

And these results were all the more significant, because Oracle missed targets last quarter, which caused the company's profit to fall short of Wall Street forecasts for the first time in a decade.

"Also they have a huge backlog," adds Trader Brian Kelly. (He thinks gains in the aftermarket are well deserved.) “I think their earnings show that companies are turning to Oracle’s software to become more efficient. Of all the names in this space I like this one,” he says.

Guy Adami sides with Kelly. “They’re on pace to have record operating margins this year. Here at $31- if you think the tape is benign, Oracle is definitely worth a look,” he says.

Looking at the numbers a little more closely, Oracle posted third-quarter profit, excluding items, of 62 cents per share, beating the average forecast of 56 cents of analysts surveyed by Thomson Reuters I/B/E/S.






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Trader disclosure: On March20, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long CSCO; Tim Seymour is long YHOO; Tim Seymour is long FCX; Tim Seymour is long GFI; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUZ; Guy Adami is long BTU; Brian Kelly is long SMH; Brian Kelly is long QQQ CALLS; Brian Kelly is long SPY CALLS; Brian Kelly is long IWM CALLS; Brian Kelly is long KRE; Brian Kelly is long SPY; Brian Kelly is long IWM; Brian Kelly is long USG; Brian Kelly is long IYR; Brian Kelly is long ITB; Brian Kelly is long US DOLLAR; Brian Kelly is short AUSSIE $; Brian Kelly is short YEN; Brian Kelly is short NEW ZEALAND $; Steve Grasso is long FRO; Steve Grasso is long ANR




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