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Technology Stocks : Oracle Corporation (ORCL)
ORCL 189.65-1.7%3:59 PM EST

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To: up3up4 who wrote (575)12/7/1996 1:59:00 PM
From: lml   of 19080
 
Please explain why you think the stock will drop by "a lot more than $4" if the Company does not make earnings. The stock is already down about 10% from its recent highs in anticipation of the impending earnings report. It did this last quarter, which was reputed to be ORCL's weakest quarter. You gotta believe that some form of earnings disappointment is already built into the current price. Why so pessimistic on the magnitude on the downside . . . or is it just wishful thinking on your spread strategy?

I consider your strategy a good one, but I gotta think a lot of caution is already reflected in the price. The downside movement you're predicting is possible, however, if there is a severe overall market correction in the near future.
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