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Technology Stocks : Oracle Corporation (ORCL)
ORCL 249.96+0.7%12:56 PM EST

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To: Hardly B. Solipsist who wrote (18844)9/13/2006 3:42:37 PM
From: alydar  Read Replies (1) of 19079
 
I think ORCL is doing well because it is undervalued. The mean estimate by analysts is $0.96 per share for this fiscal year. Lets say ORCL hits a EPS of $1.00 then the company is trading at a p/e of 16.4 for this fiscal years earnings which is a huge discount to it's historical average, below comparable software companies and can be argued as being cheap. I think if ORCL hit $1.00 EPS for fiscal 2007 then the stock could hit $25 by June of 2007. Furthermore, once the street sees that ORCL can maintain a average return of 20% is will give is a higher p/e of lets say 30-40. So during calender year 2007 I see no reason why the stock could not hit $30 and go up 20% every year as long as they can keep with their plan of 20% EPS growth. Lastly, I believe ORCL will be a major infrastructure company for the buildout of the internet for as long as the internet keeps on growing. Thus, is a provider in a secular growth market. Obviously, I am bullish on ORCL's prospects from a corporate and investment position.

Alydar
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