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Technology Stocks : Oracle Corporation (ORCL)
ORCL 207.71+3.3%Dec 3 3:59 PM EST

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To: Thomas Dremel who wrote (4356)12/12/1997 12:36:00 PM
From: hasbeen101  Read Replies (1) of 19080
 
It seems ORCL is cheap - appx 20 times next year earnings of $1.10. Long term growth is 25+%. That's good value.

The growth rate used to be 25+%. In the future, it may be much less. Lots of people paid $35 for this stock because they simply extrapolated the historical trend. Growth in the relational database market seems to have almost stopped. In a couple of years it could be a shrinking market. The growth rate might be negative. In that case a P/E of 25 would be mighty expensive.

You may be right, and I hope you make a lot of money from your trades. But I'm surprised that lots of people on this thread seem to still just be extrapolating the historical trend. I thought the recent news showed where that can lead.
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