Vahan Janjigian: A True "Oracle"
01/02/2004 12:00 am EST
In last year's Top Picks report, Vahan Janjigian picked American Superconductor, which makes products to serve the electric utility grid. The stock soared in the wake of the 2003 blackouts, and is up a staggering 301% over the last year. Here's his 2004 selection.
"Oracle (ORCL NASDAQ) produces enterprise software products that help businesses manage their operations as well as their growth. The company was founded by Larry Ellison, who continues to serve as Chairman and CEO. Mr. Ellison is no stranger to controversy. He has been harshly critical of other players in the industry and his critics say he is reckless, both personally as well as in business. But his willingness to assume calculated risks has made Oracle tremendously successful."
"After suffering through the slowdown in technology spending, which began in 2000, Oracle's revenues are once again on the rise. About three-fourths of the company's revenues, which are close to $10 billion annually, are generated from new software licenses and software license updates. Almost half of all revenues come from overseas. Revenues for the second quarter of fiscal 2004 climbed 8% to $2.5 billion and net income jumped 15% to $617 million. Much of the gains were the result of the weakening US dollar, but Oracle is also starting to see increasing demand in the United States. Given the improving US economy and recent evidence that corporate spending is reviving, I expect Oracle's business and stock to strengthen considerably in the coming year."
The key risk-on and off drivers today are the same – U.S. politics, global growth, other centr...