Actually, the lowered adjusted estimates were beaten the first quarter of 1998. After that, no "adjusted estimates" were in existence. I checked this before...and posted here with regard to it.
The estimates beaten in 2nd and now 3rd quarter are estimates that are originals.
Secondly, let's for the sake of argument assume that they were adjusted lower. Having beaten EVEN lowered estimates, they would still warrant a higher stock price than estimated.
Now that they have 3 (or is it 4) consecutive quarters of beating estimates, there are several brokerages that are raising the ORCL price estimate.
I would submit that at $1.00 in annual earnings (more or less what ORCL will have), they should be priced at a reasonable multiple for within their sector. Compare PSFT and SAP at an average of 60. That would put ORCL at $60. Why is ORCL operating with a PE of 26, when the other two are the ones unlikely to meet their estimates next year?
ORCL is showing lots of strength in a troubled market, and should at least have a PE of 40.
You may disagree, but that is your perogative. I still shake my head about this...ORCL beats estimates, beats estimates, beats estimates and nobody wants it.
The other two are unlikely to meet their high growth figures next year (roughly +50%), whereas ORCL shows promise to blow by theirs (+30%). |
