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Technology Stocks : Oracle Corporation (ORCL)
ORCL 235.64-3.4%10:16 AM EST

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To: Pat W. who wrote (15402)3/2/2001 8:44:54 AM
From: Zakrosian  Read Replies (1) of 19079
 
Hi Pat - I haven't owned ORCL for quite some time, but here're some points to consider:

-Over the past 5 years or so, their historic high P/E for the year has been about 50 or 60.

-If you remove the unusual earnings in the May quarter of last year, they'd probably be earning in the neighborhood of 50 cents a share, which would put their expected high at about 30 or less (based on historic performance).

-Their usual low P/E for each year has been about 20 to 25.

-If their trailing 12 months earnings after the May quarter ends up to be about 50 cents, then it seems reasonable to expect ORCL's share at some point to bottom around 10.

I admit this is just a quick look at the numbers, and I'm sure there are some holes in the argument, but at least it's a starting point for me to consider when to buy.
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