Oracle Corporation (ORCL) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Oracle Corporation (ORCL)

ORCL 190.13

-14.9%

9:36 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: zc66 who wrote (5868)	3/4/1998 2:47:00 PM
From: seth thomas	Read Replies (4) of 19080

>> How many companies with Oracle's past 5 year track record do you suppose are hovering in the low 20's that have a market cap of 24 billion dollars? I think you are missing something here. Market cap is a function of the stock price times the number of shares. IF the stock went up 20%, the market cap goes up 20%. So, ORCL couldn't have a market cap of $24B without the stock being where it is right now. Your sentence makes no sense. Actually, with a $24 BB market cap, ORCL is trading at around 4X annual revenue. With revenue roughly flat - maybe up 10% or so - 4X revenue is pretty good. In fact, if revenue growth remains at 10%, as I believe it will for this quarter, look for 3X revenue. for example, SYBS and IFMX trade around 1.5 - 2X annual revenue. 3X revenue would give a market cap of around $18 BB - with a resultant stock price of around 18 or so. The high multiple stocks are those with high growth. This sector is high growing, at least not lately, nor do I anticipate ORCL to have much high growth throughout 1998.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next