Larrys World:
Is it Ellison’s world and are we just living in it? Well in the software arena that may be the case. ORCL, the serial acquirer of rivals knows no bounds. The mega-cap play has swallowed well more than 100 names, with one of its most visible in CERN in December 2021, just as it came into contact with the very round par number. The chart below shows how well this has navigated a difficult technology group since a brief move below its WEEKLY 200-day SMA. The 80 number on a CLOSING basis was a thorn in its side but looks to be supportive going forward. A move back toward 85 with a stop below that former level of resistance would give one a 3:1 risk/reward ratio on my $100 target. That would round out a long cup base and could potentially go further beyond that. Another serial acquirer in CRM has not been able to keep pace PRICE-wise and is probably not able to integrate its acquisitions as well as ORCL. ORCL is just 3% off most recent all-time highs, while CRM is almost 40% off its annual peak, and over the last 3-month period ORCL has advanced 38% compared to CRM up by 1%.