Five months ago, everybody were laughing at me literally for saying that this stock is insanely undervalued. Now, the only thing i said is hold my dcf five months later, we're up 32 of the stock and in this video i'll show you how we did it and what's the next step, my name is tom nash, and i quit my corporate job as a senior Financial analyst to break down companies for you there's one thing you need to know about me: i don't take from anybody. This video from five months ago is living proof that you should never listen to doubters if you're, confident about a certain stock. After you did the research now check this out.

This is a video that i did five months ago and in this video i said that oracle is 22 undervalued at 62.. This is from january 18. 20. 21..

If we take a look at the stock price, let's go to january 18th january 18. 2021. Let's find it real, quick boom, 19th good enough 61.29 cents. As you can see, this is what the stock has done since pretty much went through the roof.

Currently at 81.82 cents, and actually i'm tracking it on my tracker file like i do all my stock and that's available on our patreon page, for you guys to go and check it out, it's always there for my own accountability and as you can see right here, We're up 32 on oracle for the past five months now. The funny thing is, if you take a look at the comments section of this video, it's going to blow your mind by the amount of experts that told me i'm wrong now. What i did in this video is actually something very simple. I took their numbers.

I did my own dcf and i reached to my own conclusions and right here you can see the price now it's currently shot above that price, it's at 82 dollars. I said it should be at 75. So i'll tell you if i'm updating my target price or i'm actually leaving, but that in a second, so take a look at the comments, because they're really amusing here so check this out, philip temple says the problem with oracle is the moment they offer something competitive. Then they start to cannibalize their own sales they're.

So far behind the curve, i can't see them catching up. Somebody else made the eevee comparison and it's a good one, essentially he's comparing them to ice uh. You know legacy automakers, they're, outdated, they're, not gon na do well, and my response here is giving them a heart and look at the other guy here. He also gunther is agreeing with him fully agree.

Technology wise oracle is far far behind on almost all aspects. I don't see how they have a bright future. Customers get angry more and more due to their strategy and how to milk their customers even more. That's the thing that people don't understand and you can stay mad at a company for being aggressive, such as facebook or an oracle, but if they're, making money and they're growing and the product is actually being used so that almost becomes irrelevant same thing from zagabok oracle Are a nasty toxic company to deal with? They have a legacy product set which is deeply embedded.

They use their revenue to buy more products, to move from rising star to cash cow, i.t, community generally dislike oracle and look at the moving dependencies upon their products. Mike chen, actually a nice guy, i love your videos tom, but as a data engineer, i strongly disagree. Investing in oracle is like investing in big auto. They have a strong hold on dying industry and will not be able to easily transition to cloud services.

In the same way, toyota will not be able to easily transform to making evs. Now it just continues on and on said money says the problem with oracle. Is they like ibm everything they touch, becomes bulky heavy and slow and there's more of it? Oracle is where software goes to die says the arthrit. Whatever his name is brian doblick is saying they are lousy, business to get involved with the reputation of suing.

For so basically, you can see. We just took a sample of a few comments, the most popular ones and the whole comment section was pretty much the same people saying me: i don't know what the hell i'm talking about, but, as you just saw, we already did 32 of the stock. This is from the moment we actually talked about the stock on january 18th right here, all the way up to 81.82 dollars, actually almost 82 dollars in the aftermarket before the long weekend. So it turns out.

I don't need to be a data scientist or a data engineer to know what the hell i'm talking about, because it's all about the numbers. It doesn't have the best growth, it doesn't have the best reputation, but it's printing money and the reason that it's spiked so high is because that what exactly i said is actually happening. Their cloud business is actually starting to pick up pace because here's the thing they don't have the best cloud services. They don't have the best cloud solutions, but this market is so massive and they have so many existing b2b businesses that they have access to.

As far as marketing their cloud services there's so much meat on that cloud bone and in fact i think they grew by 52 from last year to this year's quarter on the cloud business and it's now getting better and better as far as generating more revenue. So it's only a question of time: they're never going to be the leaders in cloud services, but there's so much meat on that bone and they have so much clients. I mean it's just unthinkable to think that these companies would just go away now. Obviously, it's not the best company, but look at the numbers here, because the numbers don't lie.

Look at this short interest under two percent nobody's shorting them. If this stock was nobody should give it 82. I was talking about it when it was in the 60s. Look at this stuff, it gives you dividend yield of 1.56 percent, which is steady up cash look at their profitability.

I mean. How would people argue with me about this? Almost 81 gross profit, 44 percent ebitda net income of 34? Who was arguing that this is not a good investment? I mean look at this again. This is not financial advice. This is just my opinion, might be, an accurate might be wrong, might be the remedy of amendment.

You got to do it in research, but i mean i look at this and i see money now. This is where people actually attack me. Well, look at the growth rate right. It's like pretty much inflationary right, that's pretty much inflation.

This might be even lower than inflation, but i mean who cares? They're, printing, so much money? Look at their financials, they don't grow, they don't grow, they might grow now with cloud, but look 37. 39. 39. 39.

40.. I mean they don't grow, but the numbers are phenomenal and look at the valuation. Again, you have to look at the multiples. You can think that the companies are amazing but look at the multiples.

They seem to be kind of reasonably priced. But if you look at pe gaap, they're, 47 or 48 on the value, so whatever the case may be they're reasonably priced, they generate cash flow. They give out dividends and they're developing a good, solid cloud business which will definitely perform and actually add to their existing revenue. I mean this was a really interesting play for me.

I really like oracle still, however, at this point i'm going to say that at 82 this is getting a little bit too steep for me. I liked it at 75. I would have lived with it at probably 78 i might haven't even stayed at 80, but above 80 with everything i just said here. I love this company, but above 80 it's getting a little bit steep for me.

So my target for this is 80, so the bottom line here is that 82 might be a little bit too high for this company. Anything above 80. Right now, until we see some further information is a little bit too expensive and, as always, a huge shout out to the channel members and the patrons for making this possible. If you want to follow this tracker file, which we have right here for all the stocks we like or don't like, you can grab it from our patreon page or the channel members section.

It's wide open to aura, patrons and channel members, and also we're doing a really cool project right now on patreon, where we actually share with you the top 30 stocks to invest in during inflation. That's going to come up on our patreon, we're already at 10 companies and we're going to go to 30 companies, which you should consider during inflationary times to hedge, your portfolio against inflation. And if you want to check it out head to our patreon page or the channel member section and check it out, it's five bucks per month and i think you're getting really good value for that. But again you do you you decide for yourself.

Thank you for the existing channel members. Thank you for the existing questions and we'll see you guys in the next video.