Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: Citing "people familiar with the matter," Bloomberg reported that Oracle is currently in exclusive talks to acquire MICROS for more than $5 billion. To be sure, MICROS' significant foothold in providing information systems solutions to the hospital and retail industries would effectively help Oracle offset more than two years of slowing growth. In its most recent quarter, MICROS Systems increased revenue 10.7% year over year in the first quarter, to $349 million. That translated to 16.1% growth in adjusted net income per share, to $0.72.
Now what: Keep in mind that this isn't a done deal just yet. Coincidentally, one of Bloomberg's sources even stated Oracle came close to acquiring MICROS Systems roughly six years ago, but that the deal ultimately fell through at the last minute. Also, MICROS Systems shares don't exactly look cheap given its $5 billion market cap, which means shares are trading around 31 time trailing 12-month earnings, and 24 times next year's estimates.
In the end, I wouldn't blame long-term investors for hanging in there, especially considering Oracle could provide additional upside with an even more generous offer. At the same time, there's no shortage of other promising places to invest for shareholders who take the money and run today.
Top dividend stocks for the next decade
If you're wondering where to look, you're in luck! The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.