Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other sectors for more than 25 years in Japan and 3 years in Korea. Permanent resident of Japan.

Senior Technology Analyst, Japanese Equities

Oracle Japan (4716 JP): No Longer a Short, but Not Much of an Investment

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

Oracle Japan announced unusually poor 3Q results and unexciting guidance for FY May-21 as a whole. This was primarily due to the collapse of Cloud &amp; On-Premise License revenues. Drastic cost cutting saved the bottom line.Both the results and guidance compare unfavorably with those of the parent company, Oracle Corporation. Japan is simply not one of Oracle's better markets. Oracle Japan is considerably more expensive than Oracle Corp., much less profitable, and notably illiquid. We see no reason to own it.

Oracle Japan announced unusually poor 3Q results and unexciting guidance for FY May-21 as a whole. This was primarily due to the collapse of Cloud &amp; On-Premise License revenues. Drastic cost cutting saved the bottom line.Both the results and guidance compare unfavorably with those of the parent company, Oracle Corporation. Japan is simply not one of Oracle's better markets. Oracle Japan is considerably more expensive than Oracle Corp., much less profitable, and notably illiquid. We see no reason to own it. 

Oracle Japan (4716 JP): What's Going Down?

Oracle Corp Japan

Oracle Japan (4716 JP): What's Going Down?