Top 5 ideas of the week:

 Scripps Networks Interactive (SNI)

We recommend Scripps Networks Interactive (NYSE SNI) as an Accumulate based on strong revenue and profit growth from lifestyle media content business and ample free cash flows, Fair Value Price of $69.04 per share.

 Xerox Corp (XRX)

We have been following Xerox Corporation (XRX) since the middle of January largely because David Einhorn (Greenlight Capital) had purchased 17M shares of the company in Q4 2011. We have stepped up our coverage of Xerox in October as the company’s shares were trading at a 30% discount to book value. However, we are most certainly aware that just because a company’s shares are trading at a low price to book value does not automatically make it a great value.  We previously covered why we saw it to be a value and in this report we will analyze why we think it may be a value trap.

 Nokia Corp (NOK)

Nokia Corporation (NOK) will need the Windows Phone 8 devices to perform much better than the Windows Phone 7 devices if it hopes to catch up to Apple and Samsung. Nokia used to be the world’s most dominant mobile communications handset vendor, but a series of missteps along the way have turned it into the Sick Old Man of the smartphone industry. Nokia’s decline was exacerbated by the arrival of Stephen Elop from Microsoft in 2010.

 Research in Motion (RIMM)

Shares of Research in Motion (RIMM) have skyrocketed upward by over 100% since September 27th when RIMM reported losses that were milder than analyst expectations and because RIMM announced it would meet its January 30th, 2013 launch date target for its BlackBerry 10 smartphone product line. We’re surprised that RIMM’s shares have seen such an upward climb in the last three months because BlackBerry 10 has not even come out yet and we believe that the long lead time between the official confirmation of the launch and when the BlackBerry 10 goes on sale will result in an Osborne Effect because it is not like anyone is running out to buy a BlackBerry right now.

 Oracle Corp (ORCL)

Oracle Software generates the lion’s share of Oracle Corporation’s (ORCL) revenue and profits. Oracle Software enjoyed 10% constant currency revenue growth in H1 2013 due to a 14% increase in new software licenses and cloud software support. Cloud related revenue for Q2 2013 was $230M, up 3.5% from $222M in Q1 2013. On a geographic basis for Q2 2013, Oracle Software’s revenue increased by 22% in the Americas, APAC was up 13% and EMEA was up 12%. Oracle Software enjoyed an 8% increase in constant currency revenues for Q1 2013 and topped it in Q2 2013 with 11%. Oracle Software’s reported results benefited from easy currency comparisons on a year-over-year basis which resulted in currency only affecting Q2 2013 revenue by 1%, versus 5% for Q1 2013. According to Oracle’s President Mark Hurd, Oracle’s Health Sciences application offering has seen strong growth. According to our channel checks, BioPharm Systems Inc recently performed a webinar on an Oracle Health Science application and it generated over 350 registrants so we can see that there is much interest in Oracle’s offerings that are tailored to industry needs and practices.

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