Oracle Corporation (ORCL) Message Board

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Technology Stocks : Oracle Corporation (ORCL)

ORCL 239.27

-1.9%

Nov 7 9:30 AM EST

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To: RMP who wrote (15485)	3/3/2001 9:58:29 AM
From: WTSherman	Read Replies (1) of 19079

The issue with ORCL has been that the company was insanely valued for such a large business. When the stock was in the $40-45 range it had a forward PE of nearly 100. This made no sense for a very large business that could not possibly show sustained revenue or earnings growth in the 50-100%/year range that this kind of valuation implied. In many ways ORCL stock price was defying gravity, in that, typically as fast growing company's get larger their PE's get lower due to the fact that you simply can't grow a muli-billion dollar business at sustained rates of 50%/year. Yet, over the past 3 years ORCL's PE expanded. I've made these same comments on this board many times since I sold my interests in ORCL and been roundly bashed for saying such. Six months ago I said that I thought $12 was a reasonable price for the stock and I still think it will get there before it starts to level out.

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