This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

NetApp Is a Perfect Takeover Candidate

Stocks in this article: NTAP ORCL EMC VMW IBM SYMC AAPL

NEW YORK ( TheStreet) -- With borrowing costs at all-time lows, and the demand to create and store all kinds of data increasing, now would be a great time for an acquisition in the technology sub-sector often referred to as "data solutions providers."

When you think of data-management and storage-solutions providers for gigantic databases like the federal government or the largest growing corporate titans, there are only a few names that come to mind.

Although technology stocks are not getting much respect these days (up to this Monday, only Apple (AAPL) seemed to be a must-own tech stock), there are numerous companies that are still very profitable and priced for buying.

Chris Hyzy, who co-manages $334 billion in assets at U.S. Trust, said in a CNBC interview on Sunday, there are pockets of real growth in the technology sector, citing themes in the cloud computing area, mobile payments areas, software and cyber security (which is why I recently presented an article titled "Upside Potential with Cyber Security Stocks").

In the same CNBC interview, it was mentioned that Oracle (ORCL) is one large-cap tech some strategists suggest considering. Art Hogan of Lazard Capital Markets, said the software giant sits in the sweet spot of middleware and software. "The shares are also cheap", Hogan pointed out.

"When you back out the amount of cash they have on the balance sheet, you are looking at a multiple of only nine times," Hogan said. "Obviously a reasonable multiple when the S&P is trading at 14 times."

ORCL has $30.68 billion in total cash as of its last quarterly report and levered free cash flow (trailing 12 months) of close to $12 billion. It has been predatory when it comes to growing by acquisitions in areas that it can integrate in its profit-making business model.

Having recently heard a report on a National Public Radio that founder Larry Ellison purchased the Hawaiian island of Lanai for around $500 million, I wondered if it's about time for ORCL to expand its already vast array of products and services? Perhaps a foray into the data-storage business would empower it to create even more cash flow and earnings per share.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs