Oracle Corporation (ORCL) Message Board

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Technology Stocks : Oracle Corporation (ORCL)

ORCL 142.81

+4.6%

3:59 PM EST

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To: Punko who wrote (7593)	6/22/1998 8:49:00 AM
From: MeDroogies	Read Replies (1) of 19080

Everything you say MAY be true, but it ignores several factors. ORCL's P/E ratio sucks when compared to other companies in the industry. There is no LOGICAL reason for this. Sure, service margins are smaller, but if not for them, ORCL would not have exceeded estimates. Imagine what ORCL's earnings would've been had their apps division had only 5% better sales (not such a stretch)! The ratio may be discounted because of everything you are talking about, but it is idiotic to price ORCL this way, when you consider that next year's earnings are expected to be $1.10. That is impressive growth! At a PEG ratio of ONLY 25, ORCL should be at $27.50. When you consider that $1.10 is a conservative estimate, you begin to put together an entirely different picture - that ORCL is VASTLY underpriced. My DD, when I bought this stock 3 months ago, put ORCL at $40 easily. The fact that I have been wrong doesn't worry me. I use the same models that my friends at Morgan Stanley use - in fact, they taught them to me. I believe it is only a matter of time before ORCL is priced fairly at $35 - 40.....

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