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Technology Stocks : Oracle Corporation (ORCL)
ORCL 248.15-3.8%Nov 4 3:59 PM EST

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To: STEVE who wrote (18866)12/20/2006 11:06:25 AM
From: alydar  Read Replies (2) of 19079
 
I think Oracle had a good quarter but fell short on their own expectations for software sales. If they had met their own forecast they would have had a great quarter. Not every quarter is going to be great with Oracle. History has taught us that and that is why you need to be a long term investor in the company or get out if you cannot handle the ups and downs.

The company said that they have seen a 35% increase in their pipeline or backlog quarter over quarter. This effect should be felt in future quarters as they stated on the conference call.

Give their current forecast they will hit nearly $1.00 in e.p.s. this year, therefore, the stock is trading at 17x's 2007 earnings which end in May of 2007. If people believe that Oracle deserves to have a p/e of 17 then the stock is fairly valued but if you believe that the stock should have a p/e of 25 then stock should gap up to 25 by June of 2007.

Alydar
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